Discussion – Legal Influences on Economic Concentration
Discussion – Legal Influences on Economic Concentration
Instruction: Respond to the following in a minimum of 175 words to each. Be constructive
#1 Main Discussion
Innovation and physical capital are 2 of the 4 factors of production. Discuss some specific ways that 1 of the following laws increased the productivity of 1 or both of these factors of production:1862 Pacific Railway Act1956 Federal Aid Highway Act1946 Federal Airport ActWhat other examples of economic concentration can you share?
What are the risks and advantages to economic concentration?
How has economic concentration influenced your industry?
#2. LG
Each of the described acts participated in the increase in the factors of productions that were described; innovation and physical capital.
The 1862 Pacific Railway Act was an agreement to create railways that would unite the East and the West. Each line was incentivized by government funding through the use of loans to build. Capital came through loans that were financed by the government. If the terrain was harder to develop, they were given more money to continue building. Even though there were obstacles, they continued and, eventually completed the connection. The accessibility between the two coasts was completed.
This country has attempted to encourage creation of different economies through various incentives. The Space Shuttle program was defunded by the government. The US began to utilize other country programs to launch their rockets. That is when private organizations within the US made a play to become the primary launchers. They have become innovators to be the lower cost option for launching satellites into space. This is now the future for space technology.
Economic concentration encourages competitors to take ideas and expand upon their uses. As a result, the consumer is now given choices that were not there before. If not managed properly, there can be overspending. Producers can spend too much money to produce a good or change. At some point, this cost could be passed on to the consumer.I work in the telecommunications industry. They focused on the use of satellites as a form of transmission to the consumer. Innovation was the basis for launching the business initially. There were not many producers so there was low competition. However, they offered a different choice for television transmission and viewing. This opened a new industry to the consumer base.
#3 TR
One hundred years ago, the automobile industry had begun building cars for everyday people. “Automobiling” was no longer an adventure or a luxury: It was a necessity for every American. A nation of drivers needed good roads, but building good roads was expensive. In most cities and towns, mass transit–streetcars, subways, elevated trains–was not truly “public” transportation. It was usually built and operated by private companies that made gigantic infrastructural investments in exchange for long-term profits. However, automobile interests–such as car companies, tire manufacturers, gas station owners and suburban developers–hoped to convince state and local governments that roads were a public concern. That way, they could get the infrastructure they needed without spending any of their own money.
It took several years of disputing, but a new Federal-Aid Highway Act passed in June 1956. The law authorized the construction of a 41,000-mile network of interstate highways that would span the nation. It also allocated $26 billion to pay for them. Under the terms of the law, the federal government would pay 90 percent of the cost of expressway construction using an increased gasoline tax.
The new interstate highways were at least four lanes wide and were designed for high-speed driving. They were intended to serve several purposes: eliminate traffic congestion; make coast-to-coast transportation more efficient; and make it easy to get out of big cities in the event of an emergency. Economically speaking, interstate made interstate business more attainable. Businesses were able to compete with the railway shipping by shipping over interstate and by keeping a “brick-and-mortar” in only one location vice in every state or major city.
ReferenceThe Interstate Highway System (2021). https://www.history.com/topics/us-states/interstate-highway-system
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