Consolidation speeds up with high interest rates

Consolidation speeds up with high interest rates. It creates a massive, unfair playing field in the Capital markets. Large corporations can capture market share because they have access to inexpensive capital.
At the same time, small businesses and small firms are directly hit and constrained by high interest rates. This consolidation is not good for consumers. It consolidates market power. And makes it less competitive.
I’ve shown in the past how regulation has the same effect. Regulation costs small businesses multiple times more than it does large corporations. It creates considerably larger barriers to entry for small firms. In fact, large corporations are the ones that craft regulations for the government. Barriers to entry in regulation and in capital escalate consolidation to the biggest, most powerful companies.
It gives them economic power and political power. The higher the barriers of entry get, the more power is consolidated into the hands of a few.
That is bad for everyone, not just small business owners.

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Видео Consolidation speeds up with high interest rates канала AJ Osborne