> The former company might be unable to keep up with the 3+1 other companies on the same playing field, so may sell to one of the other four, but only the latter company in the above example may have the money available to buy.
Your assumption is that companies can be destroyed but not created, which isn't true. The way prevent monopolies, then, is to make it as easy as possible to create new companies. There is no monopoly if five new companies are created for every two the incumbent buys or destroys.
> Limiting personal wealth to 10-100 million dollars, even "on paper", might prevent this
This has really nothing to do with it. Google is a public company. It could easily be just as big without any single individual owning more than $10M in shares.
> A company being lucky for a few quarters even gets to spend money lobbying for preferential regulations that prevent further competitors from entering the market!
and i disagree that a company can get as big as google if everyone involved was wealthcapped at $10mm. There'd be no real reason to seek ever-higher profits, especially if every company was forced to abide these rules.
as an aside, isn't it weird that during the high fuel prices in the last 4 years the fuel producing companies have made record profits? I don't actually think it's weird. It is telling. I bet it's supply and demand, though.
> and i disagree that a company can get as big as google if everyone involved was wealthcapped at $10mm. There'd be no real reason to seek ever-higher profits, especially if every company was forced to abide these rules.
As it is many of these companies are predominantly owned by index funds and pension funds, i.e. the retirement savings of ordinary people, with a net worth of e.g. $200,000 rather than $10,000,000. But they'd rather it be $250,000, wouldn't they? So the incentive remains.
> as an aside, isn't it weird that during the high fuel prices in the last 4 years the fuel producing companies have made record profits?
That's not weird, it's how supply and demand works. When demand is higher than supply, anyone who can provide supply makes a lot of money. That's the incentive for anyone who can to increase the amount of supply they can provide, until the price comes back down and increasing supply is no longer profitable.
But OPEC is a cartel, and cartels artificially constrain supply. This is why monopolies are bad.
Your assumption is that companies can be destroyed but not created, which isn't true. The way prevent monopolies, then, is to make it as easy as possible to create new companies. There is no monopoly if five new companies are created for every two the incumbent buys or destroys.
> Limiting personal wealth to 10-100 million dollars, even "on paper", might prevent this
This has really nothing to do with it. Google is a public company. It could easily be just as big without any single individual owning more than $10M in shares.