Because doing so would lead to the utter destruction of the price fixing cabal and give the new company monopoly control of the market for a time, until a new competitor arises.Kaelik wrote:How on earth does the plan: "I will secure your loan with literally nothing at all, and my business plan is to Do exactly the same thing as the industry standard, but pay my workers 2000 times what the industry standard is, but get the same work, and hire the same people" get even a single backer even if the banks where perfectly omniscient?hyzmarca wrote:Ah, but then bob and Tom both quit, get a loan, and start Earthco, which puts both Dirtcorp and Soilco out of business.
And they will get that loan, there is no chance of the banks denying them, becasue Austrian School banks are perfectly rational actors with perfect information. They'll see that Dirtcorp and Coilco are failing due to their shit wages, and that Earthco would easily overtake them and gain market dominance.
Which is exactly why the price fixing won't occur.
In a perfectly efficient market, any attempt to artificially depress or raise prices and wages will be met by new competition, and thus prices and wages remain optimal.