Argumentative Essay: Private Monopolies In The United States

The freedoms that are hindered by these entities are the freedom to enter or not enter into a particular transaction by denying them any alternative and the freedom to not be affected by transactions in which you do not partake (Friedman, 1975). A monopoly deprives the consumer of the freedom of exchange; the consumer is forced to transact with a sole seller. Monopolies themselves come in different forms and deciding which monopoly will do less harm to the people, the monopolies need to be studied on a case-by-case basis. Most monopolies can be dealt with anti-trust laws to prevent them from coming to existence. Furthermore some monopolies need the government to stop supporting them in order to terminate its existence. Freidman further explains

The reasoning stands that regulation of a monopoly obstructs competitiveness, stunting the industry’s growth. It is a competitive market that creates innovative solutions and furthers human progress. Friedman’s main example is the US railway, where the 19th century had great need for the railway system, yet with the emergence of cars and planes, railroads nearly became obsolete. Thus not only do monopolies hinder the freedom of choice they also hinder the industry by depriving it of innovation. Notably, Friedman clarifies that each case of a monopoly needs to be studied independently. Additionally, monopolies regarded as essential and sizeable in power may need public regulation or ownership instead of private (Friedman, 1975). Under Freidman’s definition of “monopolies and similar market imperfections”- the absence of alternatives, this paper finds it empirical to consider the government-supported institutions of Fannie Mae and Freddie Mac as monopolies. In which there was an improper use of government intervention and a lack of proper intervention to tackle the monopoly issue. This will be discussed later in the