Thomas Perez once said ‘’Our workforce and our entire economy are strongest when we embrace diversity to its fullest, and that means opening doors of opportunity to everyone and recognizing that the American Dream excludes no one.’’ Our Economy is one of the most beneficial factors of our country. Unfortunately, it is worsening at a rate of 5.4% every year (Census). A possible solution to this worsening dilemma could be monopolies. Monopolies are companies that have the exclusive possession or control of the supply or trade in a commodity or service, and can act as positive influence upon our economy. Monopolies can beneficial to the American economy due to economics of scale, increased funds for research and development, and a precedent
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Monopolies are created by use of several methods. First they can be both artificially or naturally made within the economy. A natural monopoly is a type of monopoly that exists as a result of the high fixed or start-up costs of operating a business in a particular industry (Dictionary). Sometimes it is economically feasible to have a natural monopolies, governments often regulate monopolies that benefit the common good, ensuring that consumers get a fair deal. The utilities industry is a good example of a natural monopoly. This is because the price to gain a proper amount of power is very expensive therefore many are unable to start this kind of company (Calabresi and Leibowit). This high capital cost deters possible competitors from joining the industry. Additionally, society can benefit from having natural monopolies because having multiple firms operating in such an industry is economically inefficient and will ultimately drive up prices. Artificial monopolies are …show more content…
One of the more recent ones is Netflix, a website that allows you to stream television series and movies. Right now Netflix holds 71% of all online video streaming with the next highest, Hulu at 11% (New Generation). Netflix was able to achieve this by improving on the system that was currently in place by the market leader Blockbusters (New Generation). By doing this they were able by use of creative destruction, this simply means that the more up to date and effective company will eventually drive to lesser company out of business. This allowed a new effective monopoly to form, one that over 44 million people benefit from on a daily basis. Another monopoly that is used very commonly is Google, the very popular search engine. Google on average processes 3.5 billion searches each day and is the most used search engine in the world. As of last month Google holds 90.1% of all the search engine business with its closest competitor at a mere 4.8% (New Generation). Not only has this monopoly provided us, the consumer with a great free product but also supplies over 54,604 full time jobs (New Generation). These real life monopolies help our economy grow and are some of the most successful and flourishing companies around today. Monopolies like these show that monopolies don’t only hold promise in theory,
Monopolies are created by use of several methods. First they can be both artificially or naturally made within the economy. A natural monopoly is a type of monopoly that exists as a result of the high fixed or start-up costs of operating a business in a particular industry (Dictionary). Sometimes it is economically feasible to have a natural monopolies, governments often regulate monopolies that benefit the common good, ensuring that consumers get a fair deal. The utilities industry is a good example of a natural monopoly. This is because the price to gain a proper amount of power is very expensive therefore many are unable to start this kind of company (Calabresi and Leibowit). This high capital cost deters possible competitors from joining the industry. Additionally, society can benefit from having natural monopolies because having multiple firms operating in such an industry is economically inefficient and will ultimately drive up prices. Artificial monopolies are …show more content…
One of the more recent ones is Netflix, a website that allows you to stream television series and movies. Right now Netflix holds 71% of all online video streaming with the next highest, Hulu at 11% (New Generation). Netflix was able to achieve this by improving on the system that was currently in place by the market leader Blockbusters (New Generation). By doing this they were able by use of creative destruction, this simply means that the more up to date and effective company will eventually drive to lesser company out of business. This allowed a new effective monopoly to form, one that over 44 million people benefit from on a daily basis. Another monopoly that is used very commonly is Google, the very popular search engine. Google on average processes 3.5 billion searches each day and is the most used search engine in the world. As of last month Google holds 90.1% of all the search engine business with its closest competitor at a mere 4.8% (New Generation). Not only has this monopoly provided us, the consumer with a great free product but also supplies over 54,604 full time jobs (New Generation). These real life monopolies help our economy grow and are some of the most successful and flourishing companies around today. Monopolies like these show that monopolies don’t only hold promise in theory,