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A Problem With Over-Centralizing Production

This article is part of my posts on the economic system of distributism.  This is from practicaldistributism.blogspot.com which you can find here:

“We distributists advocate the decentralization of production whenever practical. We are challenged by claims that centralization is more efficient in terms of cost. “What’s wrong with Big Business” is a question we need to answer. The founders of Distributism focused on the idea that, when the overwhelming majority of citizens work for a wage at jobs controlled by relatively few wealthy individuals, their situation is a form of slavery. It may not be as bad as the slavery of the 19th century but, in many ways, the house slaves of that era didn’t have it as bad as the slaves of the field.

Another issue with centralizing production is the wide-spread effects when a large producer has some problems. Effects which may be obvious include the economic dependence the local region has on the continued survival of that producer. Effects which are not so obvious, but which are more wide-spread, are when there is a problem in production that harms the consumer. Recent years have seen huge recalls of automobiles from several companies for various problems with the vehicles. Although Toyota was essentially exonerated over the acceleration problems reported with their cars, other recalls have shown true problems that caused injuries to large numbers of people using products from cars to baby swings. Distributists acknowledge that there is no way to guarantee the complete elimination of these problems, but we also contend that a larger number of smaller producers would at least lessen the impact of these problems when they occur.”

You can learn more about this issue here.

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