Wednesday, January 23, 2013

Murray Rothbard on Monopoly and Competition (Laughter Ensues)

1 comment:

  1. Monopoly and competition: An engineers story.

    I do design work for a medical laser company.
    Everything we produce must be FDA approved, which requires years of testing and paper-pushing. (unlike TSA x-rays)
    It's a small company and can't afford long elaborate R+D cycles, so the boss keeps a lookout for new devices from other companies and we replicate the functionality.
    This used to take about 9 months and 3 engineers.
    Thanks to FDA quadrupling the requirements recently this process takes years (I don't have the exact number because we've yet to complete our first).
    So, in effect, they're granting monopoly privileges to these other companies without the fuss of a patent. This protects the big boys who can afford long R+D cycles.
    Oh, and did I mention the 2.3% medical device tax that came with ObummerCare? There goes our margin.
    See ya at the unemployment office.