Key insights
- The author proposes capping company size to promote competition and limit market exploitation. Potential benefits include increased opportunities and fairer competition. Downsides include challenges for large projects and potential inefficiencies. The suggested cap is between $1-30 billion USD. This could negatively impact US equities by limiting growth potential for large companies and increasing regulatory uncertainty.
So many problems today stem from companies being too big, so big that they can ignore laws and force competitors out of the market not by creating a product that justify it but by influencing governments to create laws and restrictions that effectively locks the door behind them and forming exclusivity deals with key players to prevent competitors from ever having a chance.
If there was ceiling to how much a company could own/control then it would be much harder to exploit markets like they are today, everyone would have to play by much more equal rules so competition would be healthier. People would also have many more opportunities and since there could be 10 companies doing something rather then 1 or 2.
The two negatives I could see are that the largest projects would get harder, since there would be more companies involved and that it would likely be less efficient to have 20 companies doing their part of something then it would be to have one company optimized the entire supply chain from start to end.
The optimal upper limit would have to be studied but I am thinking somewhere in the range of 1 to 30 billion USD