This blog is not about the obvious power of the government to screw up the lives of individuals. That is obvious and criminal. That is the reason I consider the politicizing of the IRS to be the highest crime ever committed in America. Committed and approved by the most evil president to ever hold American office. Obama the arrogant.
What I want my readers to know about is the power of the Justice Department to diddle with anti-trust action.
The D of J diddled with Microsoft for ten years over the combining of a browser with a basic office platform. The EU has continued the diddling and has added other major U.S. tech giants to the list of companies being diddled.
It would all seem to be a nuisance as I imply with the silly word ‘diddle’. These big companies supposedly just set aside a few tens of millions of dollars for their legal departments to deal with the government. And go on with their business.
But that is not what happens. The threat of government is so great with such horrific consequences that are possible, that management begins to focus a disproportionate amount of attention on the government legal case. Management doesn’t just leave it to the legal department, it becomes part of every senior level meeting. It becomes part of the regular SEC filing. It becomes part of every planning issue.
New products and improvements are considered in the light of the government legal actions.
When a corporation is under pressure from a government agency about anti-trust the entire focus of top management is diverted to that issue. Growth and innovation slow down, often stopping altogether.
I sell the stock in a company when I see that it is mired in anti-trust. Because innovation will soon stop. Focus becomes lobbiests, legal thinking and management risks.
The government power to diddle is the power to destroy great companies.
While the EU represents a tiny and pathetic market, it still has some influence. The EU exerts its power in anti-trust simply because Europeans are static minded Luddities with no vision and no future. This is their only contact with real power. Other than attacking Jews, their main occupation.