fourlocks wrote:
That's always been the political conservatives' and Big Industry's attitude: We don't need regulatory oversight because market forces and the legal system are there to protect our health and safety. Trouble is, the average person lacks the time and resources to sue a company like Merck or Exxon and yes, market forces may eventually drive Boeing to build safer aircraft, but that's not too helpful for the 346 people who died in those two plane crashes. I mean, would you board a plane thinking, "Well, this plane is known to have a defective autopilot system that could cause a crash but I'll take my chances and if something goes wrong, I'll contact my lawyer?"
That's always been the political conservatives' an... (
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That's not the Conservative's point of view.
What you're seeing is Fascism at its worst. "Big Industry" is no longer entrepreneurial. They've become risk averse, allowing the Government to run things in disguise as "Government Regulations" and creating an unholy alliance which keeps competition out. It's happened to "Big Pharma", Auto, Aerospace, Steel, etc. By companies not fighting regulation, they take the risk out of failure in the market.
Big Pharma benefits from the corruption of the patent process. Right now, instead of a patent being allowed to lapse on a timely basis, the drug companies make just enough "changes" to drugs, and then refile for a full extension of the patent. This does cut both ways, since foreign governments often don't recognize the patents, and force drug companies to keep R&D costs in the U.S., causing American consumers to pay more for drugs. The foreign governments allow their producers to "reverse engineer" the drugs, and then threaten to allow their companies to sell the stolen patented drugs.
Large endeavors are capital intensive, but the government allowing consolidations (Boeing bought McDonnell-Douglas, Fiat bought Chrysler, etc.) has taken all the risk out of real market competition. The Feds bailed out Chrysler, GM, and a number of banks, making the statement "too big to fail" the watchword.
These are only the latest iterations. Mergers in the 1970's helped create the conglomerates, which contrary to popular thought, weren't immune to ups and downs in the economy. The growth of the Federal Government alphabet agencies has helped create a nightmare (EPA, OSHA, etc.).
And, before that, FDR allowed for the creation of cartels during the Great Depression. Not only did they drive out the smaller companies trying to survive, they illegally set prices and volumes, all under the guise and blessing of the Federal Government (NRA).
Whatever the costs are for Boeing, they'll be tax deductible and that will induce more bad behavior. There'll be a lot of breast beating and thunderous oration, but in the end, things just get cozier and cozier between the corporations and government.