Taking a slight detour but still explaining the growth of large businesses.
I just thought I would get your opinion on something I have been thinking about, a lot of people blame the low interest rates for the problems we are in (housing and credit wise), but I've been thinking about a much more subtle effect, that links in with some of the debate here about these large corporations.
I think the massive increase in multinational corporations and worldwide brands is actually in indirect effect of low interest rates just like the housing bubbles across the world. It is not surprising that all of these companies, e.g. starbucks, tesco were built using almost entirely debt. The consolidation among almost every business area has been built using debt, and the fall of small business has almost been down to this too.
I think people who were savvy enough, and more importantly had access to credit, took advantage of government engineered low interest rates to build huge businesses, that in free markets would never have happened. But since the debt could be financed by the expansion (as there was hardly any interest), people willing to take that risk, and people who had contacts in say the banking world, were able to crush a lot of small businesses by either buying them up or just putting them out of business.
A family business with (slightly naive) simple business owners, ones who perhaps just want to make a living and don't have world domination ambitions, were completely fucked by this, and yet again it is indirectly down to government and controlling money.
It's exactly what annoys me about the discussion in this thread, as it is not just regulation that has allowed these huge corporations to become so big, but the actual monetary policy, and the banking system, which is yet again down to government not allowing free markets (and market-set interest rates) to operate.
Just wondering what you think about this...