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this post was submitted on 19 Aug 2024
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politics
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what if a company decides to split up into 100 smaller companies to avoid taxation?
Good?
Smaller businesses have better wages and hire more people. Smaller businesses are more nimble, flexible, and they're never too big to fail. Smaller businesses, mean more options, more ideas, and variety is good for the marketplace, consumer, and the country as a whole.
Less consolidation is good! Competition is good!
I wonder when AI "competition" will crush the free market.
Some of this is questionable and other bits are flat wrong. Small businesses have bigger lending costs and less slack in their workforces, so they're often contained to focusing on a niche field.
And after a break up or spin off or outsourcing effort, certain components of the old business can become lynchpins for the rest.
That's basically the story of Cloud Strike. Much smaller than it's clients, but still too critical to be allowed to fail.
And just because a business administration is broken up doesn't mean it's revenues are. Modern conglomerates - Berkshire Hathaway, and Citadel Investments being the most notorious - have big stakes in enormous swaths of private industry. They control enough board seats to function as economic central planners.
Buffet doesn't really care if he owns one big Coca-Cola or a thousand little ones, just so long as he continues to extract that sweet sweet labor value.
Identify them then seize all of their assets IMO.
yeah but you could do that with one big company just as well. that has nothing to do with them splitting up
That's fraud and illegal.
I'm pretty sure that it would be practically impossible to prove in practice that it's fraud and illegal.
Not at all. Just follow the money.