Thursday, May 15, 2008

Corporate Control Made Easy

The free enterprise system we have today is flawed. It tends to create massive corporations that eventually get so large that they are able to control the market. No person or corporation should be able to exercise undue influence on the market simply because they own so much of it.

I have a suggestion that would fix this. It should be illegal for any company (or person) to buy or takeover another company. Every business should be its own entity with its own life cycle. A well run company could go on for a very long time, but a poorly run business would be forced to close – its customers moving to another merchandiser and its employees left to find a new job of their choice. Of course tt would still be legal to lure customers from another organization by providing a better service. Isn’t that the way it should be?

If we do not allow organizations to take over other businesses, we keep them from getting too big too fast. It also makes it impossible to eliminate your competition simply by buying them up. This can only keep prices and quality in check – they way it is supposed to work.

There is another upside to this plan in reduced stress level of the employees. Many workers in small business often find themselves suddenly, and involuntarily, working in a huge corporation. They never imagined themselves in this atmosphere and it is shocking to their system. I find myself in this exact situation right now and I can report it is extremely stressful. Worse yet, many will find themselves suddenly out of a job once the company reorganizes and removes duplicate positions. We all must work to support ourselves – aren’t jobs a good thing? The corporate control I speak of would not allow this to happen. We would work for a company that hopefully grows at a steady, natural pace. And if the business is failing - most employees would know in advance and can be prepared to find a new job.

There is already some oversight on this issue to keep companies from becoming monopolies. But a corporation can control the market long before it becomes a monopoly. The simple act of not allowing companies (or individuals) to buy other companies would make the market fairer for all.

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