Comments on: Hypothesis of the Day – Regulation of economy favors big business http://www.finlandforthought.net/2006/01/10/hypothesis-of-the-day-regulation-of-economy-favors-big-business/ Politics, current events, culture - From Finland & United States Sat, 11 Feb 2012 21:08:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Topias http://www.finlandforthought.net/2006/01/10/hypothesis-of-the-day-regulation-of-economy-favors-big-business/comment-page-1/#comment-18735 Topias Tue, 10 Jan 2006 16:57:45 +0000 http://www.finlandforthought.net/2006/01/10/hypothesis-of-the-day-regulation-of-economy-favors-big-business/#comment-18735 It's not just that big companies have cost benefits, smaller ones have them too. Management overhead, etc. There's an optimum size for a company in a given business. It’s not just that big companies have cost benefits, smaller ones have them too. Management overhead, etc. There’s an optimum size for a company in a given business.

]]> By: jdsm http://www.finlandforthought.net/2006/01/10/hypothesis-of-the-day-regulation-of-economy-favors-big-business/comment-page-1/#comment-18727 jdsm Tue, 10 Jan 2006 16:12:09 +0000 http://www.finlandforthought.net/2006/01/10/hypothesis-of-the-day-regulation-of-economy-favors-big-business/#comment-18727 Yes and no. It obviously depends on the regulation. The less regulation there is the more bullying there can be as well. Remember, regulation can also protect small businesses. Without it, big companies with clever accountants to do just about anything as you saw with Enron, Worldcom, Parmalat and so on. In Finland for example, there are a bunch of benefits small businesses have over bigger ones and if you mean one person businesses things are much better still. There are all kinds of incentives and tax benefits you can get until you're doing well. Of course if what you want is streamlined, dynamic businesses there's an issue. There are huge cost benefits to be had from being big - see Walmart. Small companies are usually less efficient so it's not actually desirable to have them in an economy. One they have some success and grow they are usually snapped up anyway. Yes and no. It obviously depends on the regulation. The less regulation there is the more bullying there can be as well. Remember, regulation can also protect small businesses. Without it, big companies with clever accountants to do just about anything as you saw with Enron, Worldcom, Parmalat and so on.

In Finland for example, there are a bunch of benefits small businesses have over bigger ones and if you mean one person businesses things are much better still. There are all kinds of incentives and tax benefits you can get until you’re doing well.

Of course if what you want is streamlined, dynamic businesses there’s an issue. There are huge cost benefits to be had from being big – see Walmart. Small companies are usually less efficient so it’s not actually desirable to have them in an economy. One they have some success and grow they are usually snapped up anyway.

]]> By: Väinämöinen http://www.finlandforthought.net/2006/01/10/hypothesis-of-the-day-regulation-of-economy-favors-big-business/comment-page-1/#comment-18713 Väinämöinen Tue, 10 Jan 2006 13:59:28 +0000 http://www.finlandforthought.net/2006/01/10/hypothesis-of-the-day-regulation-of-economy-favors-big-business/#comment-18713 I totally agree. I deal with this every day. But the flipside, of course, is allowing free and fair competition. Regulation is also supposed to protect competition and prevent monopolies. This isn't quite a rhetorical question, but: How much regulation is enough and how much is too much? I totally agree. I deal with this every day. But the flipside, of course, is allowing free and fair competition. Regulation is also supposed to protect competition and prevent monopolies. This isn’t quite a rhetorical question, but: How much regulation is enough and how much is too much?

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