American Middle Clbutt: Endangered Species 3059

Vincent Granville

What I remember from reading books on economics is that in quasi-equilibrium a national economy has certain spectrum of company sizes and for the whole economy it is important to have all sizes working together. For instance, you can not build huge jumbo jets in a small shop. Likewise I don't see any possibility for small companies in energy sectors unless they are start-ups working with some new technology but that is transitional.

The size is also used for stability. There is certain trend in economical thinking (GE is an example) that one can use size to maintain stable grows and earning. It is similar to portfolio diversification - you failed in one place but won in another and on average you are doing fine.

Another issue is that all big companies are monopolists. If they disappear they disappear with their products. That is another factor that keeps them alive. Especially in the military applications.

The problem with the big corporations is their adverse impact on society. They are the source the most inhuman practices, crap and demagogy and in general their influence on the society is too big to tolerate it like it is.

Old Pif