By waving through BT’s takeover of EE, the government’s competition watchdog has again put corporate interests ahead of the public interest.
Everything George Osborne announced last month was based on guesswork by people with a distinguished track record in being wrong. Why do we take economic forecasting any more seriously than astrology or football punditry?
Innovation, productivity and growth have slowed down since the 1970s. Our global, free-market economy isn’t as dynamic and entrepreneurial as we’re lead to believe.
Left to their own devices, firms will almost always try to takeover other firms or force them out of business. But every takeover reduces competition and choice, which is supposed to be the whole point of the free market in the first place.
Merger mania may excite senior managers and speculators but it isn’t good news for firms or the economy in the long run. This conflict between individual and collective good is as old as economics itself.