Monopoies Are Detrimental to the Economy

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If one gives a child absolute power, only monstrosities can ensue. From the words of John Emerich Edward Dalberg Acton, he agrees that, "power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men." These great men that Lord Acton speaks of are the monopolies that govern the markets of today, and that have governed the markets throughout economic history. These great monopolies are able to achieve whatever goals they want, because of the amount of power they have over the market. They can supply, price, have no incentive to improve or have good customer support to any consumers because their power over the market. These monopolies can be compared to a disobedient child, whose parents do not take any action to stop his antics. This child has the power to do whatever he would like, such as bully other children with no consequences. This power is much too overwhelming, because of the outrageous detriments that it could have on the economies of the world. Many large corporate monopolies are detrimental to many economies around the world, because, as a result of their misuse of power, monopolies have no incentive to improve or do more than what is necessary; they have extremely high prices at extremely low supply, and they do not use resources efficiently. These three factors could lead to much inefficient use of the limited supply our countries have, as well as decreasing GDP because of the lack of spending due to the extremely high prices, ultimately decrementing economies around the world. With less or no monopolies, economies and consumers can finally breathe easy, without the fear of high prices or inefficiency. First, the many monopolies in the world are detrimental to the economy because the lack of competition gives company little incentive to do more than what is needed. Monopolies will often give mediocre service,

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