Libertarianism and monopolies
Hello, I recently did some reading on Libertarianism and I’m quite intrigued. I have two questions that I haven’t been able to find answers to, so if someone can offer their thoughts, that would be appreciated.
- I’ve read that a lot of monopolies are only sustained with state intervention, but what about an industry with high barriers of entry, like telecommunications.
If the government took it’s paw entirely out of private business, building telecom infrastructure is still very costly and would result in a company initially setting high prices or incurring a boatload of debt. Also, I live in Canada, where phone bills are very expensive, but I see no reason why a company would have incentive to set their price lower, because would that not cause a race to the bottom, where no business wins?
- Long-term care homes are also something I’ve been thinking about. If all the private homes were crap, and someone opened one that was better quality for the same price, all the other homes would have to increase their quality while keeping their price the same. Now the profitability of all businesses in that industry are reduced, so why would a home have incentive to increase quality?
Thanks for your time.
Article from r/Libertarian: For a Free Society