[spacelizard]

The goal of a capitalistic government is still unfortunately to have a wholly predictable economy. There is competition, but only until a winner is declared, i.e. a monopoly is granted. After this the rents that the winner charges can be raised and lowered freely, but in a controlled manner, in order to manage where and when the value is actually generated.

This gets weird with software businesses as these companies tend to insulate from losses relatively well. This coupled with the fact that in some markets there is no way to generate additional value without a huge public investment happening upstream (utilities) is why a lot of VC goes so crazy for it. Keeping the cash flowing is the only way to avoid being taxed profusely – All you can do in some situations is raise rents and spend hastily, for better or for worse.