Even before the recent financial crisis, restructuring in the economic sphere, in the forms of mergers, acquisitions and corporate buy-backs of shares, was accelerating to a record pace, and in another time of crisis the process could potentially approach catharsis. Governments around the globe are guaranteeing, directly lending to, or taking equity positions in, a broad range of private enterprises, in banking, finance, housing, manufacturing and elsewhere, effectively socializing the credit system and gaining control over its allocation, i.e. the shape of the entire economy. Government is not well suited to running businesses, but it has an opportunity to realize its agenda of incentives, regulations and other reforms. The question is now and to what extent government will use its new powers. Whole swaths of the global economy conceivably could become restructured in one fell swoop. There is an opportunity here for government to awaken to its responsibility, recognize its needed role, and appropriately set new rules within which capital flows, putting capital in its proper place subservient to humanity at large. The concentration of business ownership among fewer companies and the reduction of publicly traded shares through corporate buybacks, acquisitions, mergers and taking companies private is a two-edged sword. On the one hand it furthers the negative development of concentrating wealth among fewer people and exacerbating income inequality with add-on effects on cultural cohesion and the functioning of government insofar as it depends on money. On the other hand, when capital is concentrated it forms a bigger target for reform. Governments have the power to restructure companies and the economy, via monopoly, monopsony and other regulations. When industry is concentrated it may be harder to withstand a public outcry and government intervention to restructure business may become easier.
