On Sat, Apr 16, 2005 at 09:33:32AM -0400, Doug Henwood wrote:
> tully wrote:
>
> >Free market chaos from mom and pop markets?
>
> In the macroeconomic sense, yes. That's one of the reasons the 19th
> century economy was so unstable. When there are a lot of small
> actors, there are more links between firms, meaning more opportunity
> for something to go wrong - a missed payment, for example, that can
> cascade through the system. And less financial strength among the
> small individual actors increases the likelihood that something can
> go wrong. Large firms internalize a lot of these relations, meaning
> less possibility of something going wrong.
>
> Doug
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-- Michael Perelman Economics Department California State University Chico, CA 95929
Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu