{"id":26355,"date":"2021-02-07T20:21:09","date_gmt":"2021-02-08T00:21:09","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=26355"},"modified":"2021-02-08T22:12:53","modified_gmt":"2021-02-09T02:12:53","slug":"public-monopoly","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/public-monopoly\/","title":{"rendered":"Public Monopoly: Does It Work in a Capitalist Economy?"},"content":{"rendered":"\n

What is a public monopoly? Are public monopolies bad for the economy?<\/p>\n\n\n\n

A public monopoly can occur when the government directly produces goods for sale. A true public monopoly is uncommon in the U.S., but it can occur when government exerts control over the private sector. <\/p>\n\n\n\n

Read more about the public monopoly and how they affect the economy.<\/p>\n\n\n\n\n\n\n\n

What Is a Public Monopoly<\/strong>?<\/h2>\n\n\n\n

As we\u2019ve seen, the private sector is not really the source of most monopolistic behavior in the United States. Instead, monopolies are most prevalent in those industries that are most heavily controlled by the government.<\/strong><\/p>\n\n\n\n

Public monopolies can occur when the government directly produces goods for sale. Because they are taxpayer-supported and don\u2019t need to earn a profit to stay afloat, these government monopolies can easily undercut private competitors. Examples of this form of government monopoly include the post office and the construction and maintenance of roads and highways.<\/p>\n\n\n\n

But in a capitalist economy like the United States, there are few examples of the government directly providing services for sale of which it is the sole provider. Instead, a more common form of public monopoly is when the government uses its regulatory authority to entrench private firms and lock out potential competitors within a particular industry.<\/p>\n\n\n\n

In the United States, for example, many utilities like water and electricity are provided by \u201cpublic utilities,\u201d which are effectively private monopolies backed up by government subsidy and regulation. Historically, other examples of these mixed public-private monopolies have included:<\/p>\n\n\n\n