Jonathan Gros-Dubois
2 min readAug 15, 2021

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This is a great article. About the recommendations at the end, I have some suggestions:

  • If stock buybacks were banned, it could give certain investors who own shares via offshore holding companies advantages in terms of taxes when they manually re-invest their dividends into the company. These investors could end up with a larger share of the company than other investors. Also, investors who receive their dividend payments first will be able to purchase additional shares at a lower price than those who receive their dividend payments later. Many investors will reinvest their dividends even if you ban buybacks at the company level and it will still drive prices up (just maybe not as much).
  • About the government setting drug prices. This will require hiring more people in government (as part of a new agency) to analyze production costs and come up with prices. Sooner or later, these government employees will get cozy with big pharma (e.g. big pharma will offer them nice, highly paid jobs after they leave the government agency); the agency will thus work to suppress small drug companies from getting good prices on their drugs; only big pharma will be able to get the prices they want. Government intervention always seems to benefit big players at the expense of small players. This kills innovation. Instead, patent protections should be loosened up to allow generic drugs to be produced by more different companies. Less patent protection will discourage big companies from investing in R&D but it won’t discourage small companies since it’s easier for them to maintain secrecy and they may still be able to sell their inventions to big corporations without having a patent or they can benefit by being first to market. It would also give more power to the inventors of the drug since they will have the valuable knowledge in their brains which is better for them than a patent which gives more control/power to the company which employs them. Small companies can make their employees sign non-disclosure agreements to prevent leaks.
  • About monopolies, I think that breaking them up can help a bit but the monopoly issue could be fixed more easily by stopping money printing by reserve banks. The asymmetric playing field which money printing creates is responsible for allowing big monopolies to thrive in spite of their growing inefficiencies. Money printing allows the politically connected elites to monopolize the flow of new money by guiding its path as it enters the markets.
  • Limitations on political donations will not be enough to prevent big corporations from controlling politicians. The primary way they do this now is by promising them nice, highly paid jobs after they leave politics (e.g. in a think-tank funded by the corporations). In addition to limiting political donations, you would also need to prevent ex-politicians from receiving any money from big corporations in their lifetimes. You would have to give them a nice retirement package and higher salaries to compensate for this significant drawback. It’s critical that political careers are not allowed to be turned into lucrative corporate careers later.

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