In times of crisis there are always winners and losers and the financial crisis has been a triumph for a big business. For small businesses however, it has been a disaster as this BBC report illustrates. It shows how small business owners in the USA are now being denied credit by banks and even having existing agreements withdrawn. Large corporations on the other hand continue to borrow at will and as we’ve seen with the bailouts, even receive huge handouts from the Government.
I listened to a retrospective on the BSE (mad cows disease) crisis last week and one of the points that came out was that it was wonderful for large farming conglomerates. The collapse in the market for British Beef devastated small farmers in the UK, most either going bankrupt or committing suicide.
Such crisis help big business flush out small competitors and leave consumers at the mercy of a handful of corporate giants who reap even greater profits in the aftermath and reduce both commercial diversity and choice for the consumer.
The legacy of the financial crisis will be concentration of financial power in an even smaller number of hands.