Dangers of Monopolies and Large Corporations

1163 Words5 Pages
Dangers of Monopolies and Large Corporations
Lucas A. Schmidt
Luna Community College

Monopolies have the potential to employ massive amounts of workers, and the potential to cause wide spread economic damage when they fail. Are these rewards worth the systemic risk to our economy, and every day life? American history is littered monopolies and large corporations that have caused, recessions, depressions, market crashes and economic uncertainty in the wake of their collapses. Monopolies also limit diversification to both consumers and to the marketplace in general, due to the nature that they would be the majority the market anyway. Monopolies also reduce competiveness and innovations in the economy. Regardless of the
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These two companies do not offer any consumer transportation, and have bought any smaller competitors.
America’s most resent crisis and now the worlds America’s most resent crisis was the global financial crisis that started in 2008. It began with the bankruptcy of Lehman Brothers on September 14, 2008 and it spread like a flood through financial markets. At first the U.S banking sector had a great fall in liquidity, with this contraction in commercial lending banks could not pay their expenses. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. This crisis was further compounded because the majority of the banking industry in the united states was is managed by four banks. These banks are referred to as the “Big Four” them being: Bank of America, Welles Fargo, CitiGroup and JPMorgan Chase. These four banks managed 39% of the entire banking market in the U.S., because they manage such a large amount they have been deemed “Too big to fail”. The 2008 global financial crisis is essentially three interrelated financial crises; subprime lending crisis, housing crisis and the contraction of commercial lending within the banking industry. The Subprime mortgage crisis is an ongoing financial crisis characterized by
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