Sean
Lv 7
Sean asked in Politics & GovernmentPolitics · 1 decade ago

Does too big to fail basically mean monopoly?

I noticed starting in the 90's corporations would acquisition companies, and conglomerates would acquisition corporations. Leading to entities too big to fail. Are there still regulations against monopolies?

Does too big to fail mean it should?

12 Answers

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  • 1 decade ago
    Best Answer

    Companies get too big to fail because the anti trust laws aren't strictly enforced. Currently, a cattlemen's group known as R-CALF USA is trying to get the Dept of Justice to prevent a merger that will give one company the ability to control cattle prices.

  • Elvis
    Lv 4
    1 decade ago

    it implies monopoly, but having a monopoly does not imply being too big to fail. A Republican will think that is contradictory, but only because they don't understand logic. Certain essential goods and service that are critical to our infrastructure (banks, oil, etc) cannot be allowed to get to big too fail, whereas non-essential goods and services are free to fluctuate with market conditions without causing harm to the overall economy.

  • 1 decade ago

    No. It doesn't. A monopoly means that they have ALL of the business in an area. "Too big too fail" doesn't have to be a monopoly. For instance, you could have THREE really big companies in an industry, all three of which are too big to fail, but sharing the business so that no one has a monopoly. Different concept entirely.

  • 1 decade ago

    Ronny Reagan removed all the regulations that prevented corporations from merging into a monopoly.

    That's how we lost all of our local banking institutes during the 80s to companies like Bank of America, Chase and Citi Bank.

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  • 1 decade ago

    Yes, the Department of Justice is charged with enforcing monopoly and anti-trust laws.

  • government creates monopolies. it is the only way for monopolies to form. monopolization of industry is the opposite of the free market. "too big to fail" is another way of saying they are one of the government's favorited companies. they couldn't get that big without special priviliges like tax breaks and subsidies

  • Anonymous
    1 decade ago

    Too big to fail means it's too big.

  • Anonymous
    1 decade ago

    The issue you raise is currently under discussion as we speak. But government doesn't know how to restrict the size of companies without restrict their right to grow.

    Clearly we are in new territory in this economy.

  • 1 decade ago

    We had laws against that.

    But as you know they change the law to make their selves the most money.

  • Anonymous
    1 decade ago

    Yes it does, any business that is unsustainable should fail.

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