While, I’ve read about the relationships both government and business can enter with each other, there is an aspect of this relationship that I’ve wondered. Has a successful firm or corporation that has gained success through it’s own efficiency, innovation, and smart choices in the Free Market ever gone to government in order to manipulate the free market economy in order for them to maintain the market lead they developed? Not so much, initially because of aid needed to save their business, but say because of their success they have a sense of invincibility that is then expressed in greed for more power channeled at government intervening.
So, if Big Business itself is going after regulation doesn’t that make a particular, business accountable just as, much as government going to intervene?
I mean how’s it possible to achieve a true laissez-faire capitalist environment, if business is actively going to government( and not the other way around) to use it to gain an advantage on consumers and their competition.
The mistake progressives make is that a large federal regulatory body is necessary to act as a check against big business. Little do they know the larger the regulatory body the more susceptible to be co-opted and bribe by big business.
As a result you get the worst of all possible worlds-large bloated companies protected by government regulations (the smaller companies can’t afford to comply)
and implied bailouts and favors.
These types of companies do not serve customers best as their prime focus is not on serving customers, lowering prices or innovating, but rather maintaining their position via influencing the government to keep competitors at bay.
As Mises points out these types of businesses are the most anti democratic and antithetical to a free market.
In a free market, consumers vote with their dollars (or other fiat currencies).
In a controlled or planned economy, consumer choice is limited.