Review of Tyler Cowen's new book. This is a point that I don't think can be repeated often enough:
Cowen addresses some common criticisms of big companies—that too many are monopolistic, for example, and that more should be broken up. Monopolies do exist, but many, if you look closely, are in heavily regulated industries where misguided government policies raise the cost of entry and allow a few companies to dominate. Health-insurance firms have consolidated into giants to deal with all the regulation now demanded of them. Cable television offerings were restricted for years thanks to local governments handing out exclusive territorial licenses. Only recently, with the rise of online streaming, has technological innovation created a path around the cable monopoly, decreasing prices. And, of course, housing prices have skyrocketed in certain markets because of inadequate supply caused by government restrictions on building.