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To: wienerdog.com
I was thinking they wouldn't want the extra regulation/oversight, but I guess they're already used to a lot of that.

One thing you fail to realize--the dirty little secret in politics--is that BIG BUSINESS LOVES CERTAIN KINDS OF GOVERNMENT REGULATION. Supposed that there are ten widget manufacturers all of whom have profits 1% of gross revenues, but whose gross revenues are $10M, $15M, $25M, $30, $35M, $40M, $45M, $50M, $100M, and $150M. If the government were to impose some new regulation on widget producers, compliance of which would cost each producer $500K, how would such a regulation affect the two largest producers?

Although compliance with the regulations would cost them $500K, they would have sufficient profits to absorb that. Smaller producers, however, would be put out of business. With the smaller producers that controlled half the marketplace out of the picture, the two larger producers would have their sales increase substantially. The benefit they would gain by having their cometitors knocked out would far outweight the extra cost to them of the regulations.

14 posted on 11/21/2001 8:19:52 PM PST by supercat
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To: supercat
Thank you. That is a great thing to keep in mind from now on!
16 posted on 11/21/2001 8:30:02 PM PST by wienerdog.com
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