Adam Smith and Antitrust

The Comcast and TimeWarner Merger presents serious challenges. While it does allow for the growth of companies, is it the right move for our economy? Questions to consider.

The Econ Diaries

NoMonopolies

During the 1700’s there lived an economist who was famous for coining the term, “Invisible Hand”, and many other economic mantras that still survive today. This economist was a Brit by the name of Adam Smith, and while Smith is widely remembered for his invisible hand theory, he had many other ideas that still hold true today. Currently in the US we find ourselves surrounded by large companies that seem to be consuming competitors in their fields. This wave of mergers can be accredited to a period where Antitrust law has been near nonexistent. While the 1700’s was 300 years ago Adam Smith still saw the inevitable, and that is “Seldom do businessmen (companies) of the same trade get together but that it results in some detriment to the general public.” In todays economy companies are becoming more and more powerful, and Adam Smith is correct when he says that…

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This entry was published on April 18, 2014 at 11:19 am and is filed under Uncategorized. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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