In a Herald editorial the possibility of weakening the CC during a recession is put forward. To be fair, the article is saying that the people that want to weak the CC are missing the benefits – but the article still states:
If conditions deteriorate badly, there may just be a case for temporarily relaxing some elements of competition law to help the corporate sector
This doesn’t make sense to me. How do you “help” the corporate sector by allowing anti-competitive processes.
During a recession the primary problem is that prices ARE NOT ADJUSTING and so the allocation of resources is inefficient and this is costly. Allowing firms to keep prices artificially high won’t help the economy – it will hinder it.
There is too much of a micro focus on “keeping a businesses afloat” – the important issue is actually making sure that the allocation of resources across the economy is as efficient as possible. Allowing prices to get stuck outside of their competitive level isn’t going to help this …