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If You Are Too Big To Fail, Are You Too Big To Be In Business?
We've all gotten used to the logic put out by some of the brilliant marketing people in Corporate America that their companies are too big to fail. In fact they're so big that their failure might cause a ripple through the United States and the World economies that we might not be able to recover from. This logic has gotten these companies tens, if not hundreds, of billions of dollars. This marketing logic has cost taxpayers enormously.
As an advocate of entrepreneurial companies, I ask this as a follow up question: if you are too big to fail, are you too big to be in business? These companies that are so big have nearly monopolistic control of their industries. The companies that are too big to fail have so much control and domination that it's nearly impossible and certainly unfair for smaller entrepreneurial companies to have any chance of competing with them, if not against them.
I wonder if under the Sherman Anti-Trust Act some of these companies should be re-evaluated. If they're too big to fail, then maybe they're too big to pass muster under Sherman.
This is a challenge that I put out to the Federal Government on behalf of entrepreneurs all over the country. I wonder at what point someone from our Federal Government will understand this question and take some action on it. If this is something you believe in, then I'd like to see you take some action on it by writing a comment on this blog as well as forwarding this comment to a senator or congressional representative in your district.
Comments (2)
Ben - HP is just trying to be more like IBM, who sold the PC division to Lenovo quite a while ago. As much as it's made fun of in the IT world, I'd like to ride off with HP's ink business.
Carlos Flores, over 13 years ago
Some of these companies that are too big to fail, are too big to operate efficiently. I think the recent news of HP trying to "Spin or Sell" off it's PC Consumer Product Division is a great example of a big company realizing that it's doing too much, and it'd be more efficient with better returns in a more niche market. Great topic since the government has thrown lots of money at financial companies that were deemed "too big to fail", yet they entice them to pick up assets are bottom of the barrel prices to keep the FDIC from going bankrupt trying to pay off all FDIC funds by failing banks.
Ben Kevan, over 13 years ago