Bases Quote by Eric Kierans
“This is the standard procedure for corporate growth these days; one company buys up another on loans that are floated on the basis of future earnings, and the monopoly or oligopoly created in this way produces the necessary funds by squeezing out competition, and passing the costs along to the consumer. The bucket that holds the new wealth is called a corporation.”
About This Quote
Source Speech: Economic Commentary, Eric Kierans, 1970s
Corporate growth often relies on leveraged acquisitions that create monopolies, which then extract value from consumers while concentrating wealth in the corporation.
In simple terms: Companies grow by buying rivals with borrowed money, forming monopolies that profit at consumers' expense.
Key Takeaway
Beware of consolidation that harms competition and consumers.
Themes
economics
corporate finance
monopoly
wealth distribution
Mood
critical
analytical
Type
observational
critical
When to use this quote
- M&A strategy
- regulatory review
- consumer advocacy
- investment decisions
Key Concepts
Leverage
market power
consumer impact
Questions to Reflect On
- How does consolidation affect market health?
- What safeguards can protect consumers?
A Different Perspective
Such strategies can lead to systemic risk and reduced innovation if unchecked.
