Quote:
Originally Posted by jfman
The whole idea of people making billions is a failure of capitalism. If there's that level of income and profits in an industry competition should arise and drive prices down.
Of course we sold nationalised industry on the cheap to allow these profits to arise in markets where no genuine competition exists. Yay!
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How dare they make profits and generate taxes.
Even Cuba has had to relent and allow some capitalism, iirc mainly tourism related.
Competition can't work in all arenas. If something requires a large investment to build, there has to be enough spare demand for it not to be just sitting there as an expensive white elephant. Even if the plant was built, the costs still have to be recovered, so there is little scope for price reduction. You can't easily have, eg 10 plants, all working at an average 10% capacity.
Just look at the high street and energy supply companies going bust, to see what happens when you add extra business costs and squeeze prices.