Liberal Forum

Cannonpointer » 25 Jul 2015 5:16 am » wrote:Main Street corporations are at a significant disadvantage competing with Wall Street corporations, because they do not have unlimited financing to bring them artificially to scale. They must go through numerous growth stages, each fraught with pitfalls, in order to bring their enterprises to scale and receive the advantages which come with that condition.

What gives Wall Street corporations their advantage - access to virtually unlimited venture capital - is government sanction of the invitation-only money markets. Those markets are created by legislation and given the official imprimatur of government through licensing under SEC regulatiion. The advantage is confered by government, which is picking winners and losers by empowering a few at the expense of the many.

If government did not legislate the NYSE and other money markets into existence and officially recognize them, at the expense of the many others who are disallowed, then FREE ENTERPRISE would naturally occur. Instead, we have a state engineered economy, with the state deciding who can play what role, when, and where.