Is government involvement in creating a monopoly desirable?

Answer 1

Governments create monopolies by granting patents and copyrights or exclusive access to customers (utilities),
In the case of patents to promote research and copyrights to promote production that would not be rewarded by the market at its social value without government intervention. Some economists have suggested that government sponsored research and the awarding of prizes for inventions would serve the public better for the development of new drugs, but most agree protection of intellectual property is important function of government.
In the case of utilities granting monopoly rights is more efficient than competition because of the large initial costs.

Answer 2

In a situation where it only makes sense to have one company in the market, government involvement is necessary. For example: you only want one power company laying power lines and sending out power. Otherwise you wind up with multiple sets of lines which can create all kinds of problems.

In the case of a monopoly, you don't have the checks and balances caused by competition. Therefore you want government regulation to ensure the company is doing things right.

So in this sense, you would absolutely want government involvement in creating and monitoring a monopoly. But in any case where having more than one company makes sense, you want the government helping to prevent monopolies.

Answer 3

Yes. The main goal of the government in this case is to promote innovation and keep people inventing new things.

The government allows for monopolies to ensure that inventors know they can get rich with their inventions. But also the government has steps to limit monopolies to make sure it doesnt discourage innovation.

So the government wants monopolies for only a little bit, and then seeks to dissolve them. It's a cycle and a delicate balance that all serves the ultimate goal of encouraging innovation.

Answer 4

yes it is because people are not smart enough to be trusted to think for them selves or make choices.

Answer 5

yeah thats how the bastard republican beurocrats take charge, when not using enima guns