Reply To: On the size of firms due to State activity


Thank you for the sources, Dr. Herbener. I completely agree size of business is a red herring and what is important is whether they are satisfying consumer desires or not.

However, just to focus for a moment on this red herring: do you agree it might be incorrect to say that in this current market hampered by the State, business, ceteris paribus, is bigger than it would be on the free market?

The reason my friend said this statement was incorrect is because lobbying is a skill like all other specialized talents. Individuals skilled at lobbying government to create regulations that outlaw competition could very well be skilled at satisfying consumer desires instead (in a sense, there is an opportunity cost to developing lobbying skills). Do you agree with this logic? Or do you think there is something I am missing here?