Quote:
Originally Posted by tooslow
...then some other company would have stepped in and filled the void. That's the way a free market economy works, if left alone. No doubt there would have been a considerable ripple effect in the economy had GM failed, but in the long run, this republic would have been much better off, IMHO.
There is a reason survival of the fittest exist in the natural world. It improves the breed over time.
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Except we don't have a free market economy, which is why the government examines large mergers. You may be right that the ripple effect would have really large short term implications, but there are possible long term ones. This is why a pure free market economy doesn't exist in this world, and even a place like the UK which is more like one than the US isn't pure either.
I agree with survival of the fittest but you can't speak in absolutes when it comes to money. Externalities happen that are beyond the normal flow of business. For example basically you can be the fittest (Dinosaurs) and a freekin meteor hits the earth and wipes your ass out anyway.