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by oceanplexian 885 days ago
It’s bad because the government is artificially manipulating market forces and prevents price discovery. Imagine you’re thinking of starting a small airline, like a Jetblue or Spirit, but investors know that if the business ever plans to exit through an acquisition, the government will intervene. Well, as an investor I’d be a lot less likely to invest.

As a result, you stifle the free market and prevent the emergence of competition. The knock on effect is less choice for the consumer and a less efficient market.

2 comments

This is not a bad thing. Businesses should plan to make a money themselves and not count on being acquired. I’d say that mindset is the source of a lot of our current economic woes
Yet you completely ignore the non competition in monopolistic markets? Markets aren't pure and price discovery is stifled in a lot of ways. Arguing consolidation will help make a fairer market is ignorant if not disingenuous.

Won't someone think of the poor investors? Again, that's not who public policy should serve.