Is market concentration good for our economy? If not, what can be done to increase the number of companies that produce the products we buy?

[Adaeva]

The supply of baby formula in the United States is highly concentrated. Three brand-name domestic producers—Abbott, Mead-Johnson, and Nestlé—supply about 98 percent of all formula domestically.

The formula shortage stemmed from a product recall by an Abbott Nutrition facility in Michigan, where unsanitary conditions and contaminated products led the U. S. Food and Drug Administration (FDA) to temporarily shut down the facility.

[jshm2]

It's WHY you have an economy. Competition is largely a myth. To make a "sector" you need to have one or two big players in that sector. You really think power and money easily switches hands? Most of these companies are backends for these "smaller" companies. But that's another debate.

Baby formula in the USA is fucking terrible and Americans should hang their heads that they put more care and innovation into guns manufacture than they do food manufacture.

Americans just need to surrender and start importing food. Instead of producing the crap they like to pretend is "food".

https://www.dailymail.co.uk/femail/article-7508903/Food-activist-shows-comparisons-U-S-U-K-ingredients-lists-products.html

[gorydetails]

Get rid of regulation and you'll see more competition.

[Losalt]

It's the exact opposite.
Without regulation you almost always end up with monopolies, or at best duopolies.

[Losalt]

The idea that markets self regulate is a fantasy.

[gorydetails]

@Losalt So you'll just ignore her last statement, I guess.

The supply of baby formula in the United States is highly concentrated. Three brand-name domestic producers—Abbott, Mead-Johnson, and Nestlé—supply about 98 percent of all formula domestically.

The formula shortage stemmed from a product recall by an Abbott Nutrition facility in Michigan, where unsanitary conditions and contaminated products led the U. S. Food and Drug Administration (FDA) to temporarily shut down the facility.

Is it highly concentrated because of a lack of regulation? Absolutely not. That's why it was near impossible to import formula.

It's awful when the literal example she uses contradicts your reply.

[Adaeva]

I believe you are correct. Competition works. The problem is, with government intervention in every aspect of our lives, there is no free enterprise. Unless a monopoly will always sell for less than its competition, monopolies are impossible under free enterprise. Because if someone or a company can make a profit they will make and sell the product at a lower price. Of course, the monopoly may then lower their price to eliminate their competition before raising them again. However, that can never work because someone or a company will import from another country and sell at a lower price.

[Lliam]

Market concentration is never a good thing. The rich get richer, drive out the competition, and innovation decreases. Small businesses and consumers pay the price.
Regulatory agencies become clients of the industries they are supposed to regulate. Industries write laws that benefit themselves and government winds up subsidizing monopolies.

[Grond21]

Monopolization of the market is virtually never good, and almost always signifies something nefarious is going on. It could be either cheating in the company or government intervention. Usually the latter.

[NamerOfStars]

In the same sense that the Bomb was good for Hiroshima, sure.

It's a pity Distributionism never caught on.

[purplepoppy]

That's the problem with capitalism, you always end up with a monopoly or a tiny number of large companies dominating the market making it near impossible for small businesses to grow.

As for baby milk just get your tits out.

[Adaeva]

What nonsense! There is no capitalism and there hasn't been for many decades, if ever. Monopolies are the result of government intervention, not capitalism.

Obviously, breastfeeding is best, but not mothers can breastfeed.

[Adaeva]

*not all mothers

[Adaeva]

@purplepoppy For certain you are well indoctrinated.

[Anonymous]

none of this is good for our economy right now. too much money circulating is a bad thing, as you can see. whether there is more companies or not, price gauging is still going on today.

[exitseven]

We need to limit imports from China and eliminate the uncertainty in our domestic markets.

[DWornock]

It would not be bad if it was not due to the government's favoritism.