Skip to main content

View Diary: Over half of all U.S. tax subsidies go to four industries (40 comments)

Comment Preferences

  •  A subsidy isn't rational (0+ / 0-)

    because the monopolist is already getting to make monopoly profits.

    The inevitable result of a monopoly is that the monopolist sells fewer goods and services at a higher price, resulting in a "monopoly profit." (Do you get the concept of monopoly profits? If not, here's a summary, if so I intend no disrespect.) The solution is to force the monopolist to extend those services via regulation. It can take the cost out of its monopoly profit, or, to put it another way, regulation should reduce the monopoly profit by forcing the monopolist to price and sell the good or service closer to the optimum output level. By contrast, subsidizing the monopoly to extend the services simply allows the monopoly to keep making monopoly profits on a larger volume of bigger of sales.

    This is our time. We can do this. We can change the world.

    by Simian on Thu Nov 17, 2011 at 05:41:45 PM PST

    [ Parent ]

Subscribe or Donate to support Daily Kos.

  • Recommended (145)
  • Community (63)
  • 2016 (41)
  • Environment (40)
  • Republicans (37)
  • Elections (34)
  • Culture (34)
  • Bernie Sanders (32)
  • Memorial Day (31)
  • Media (26)
  • Labor (25)
  • Climate Change (25)
  • Education (24)
  • Civil Rights (23)
  • Barack Obama (23)
  • Spam (23)
  • Trans-Pacific Partnership (22)
  • GOP (22)
  • Hillary Clinton (21)
  • Science (20)
  • Click here for the mobile view of the site