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by michaelt
1895 days ago
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It's extremely easy for the government to accidentally create monopoly suppliers. If Amazon signs a 5 year contract to get all their delivery trucks from Ford, GM isn't going to go out of business; and when they're re-negotiating the contract in 5 years time there'll still be a vibrant competitive market. But if you make tanks or jet fighters or railroad rails, you might only have one customer. And if your only customer signs a 5 year deal with someone else, you're out of business. |
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Similar trends took place in commercial aviation. There aren’t successful entrants into this market despite a lot of state backing, because it is now very hard and expensive to create an aircraft that matches the performance and efficiency of the latest models of Boeing and Airbus.