Sunday, January 18, 2009

Barriers to Entry

One thing that irks me about these bailouts is their stifling effect on competition.

What our lawmakers have forgotten about this country is that you are supposed to have the ability for new entries in a market to come up with a superior idea and challenge the existing operators.

So here we are bailing out automakers. But not *all* the automakers, just the ones that haven't been competitive and have run their companies like @#$! for the last 30 years. The same day that Chrysler gets $1.5bil from the Government, another article talks about the challenges that two new electric car companies are going through trying to get started up.

When you're not getting sweetheart deals from Congress, it's kind of hard to operate in this country.

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"I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it." – Thomas Jefferson