Government Monopoly, What is It?

What is Monopoly?
Monopoly is a process where one or more individuals or companies dominate the market of a particular trade or business. Often, a particular individual, individuals or companies and businesses have the exclusive power to carry out a particular business or trade. They may also have the exclusive right to sell certain kinds of products. Monopoly allows these individuals or businesses to increase or decrease prices at will due to the lack of competition.

Government Monopoly Defined
Government monopoly is a process where a particular government agency has the exclusive right to provide particular goods or services. This type of monopoly is covered by the US government law, which prohibits any entity from carrying out competition in this particular sector. This means that anyone who ventures into certain business practices that are supposed to be monopolized by the government may face charges of violation of such laws.

Example of Government Monopoly
A good example of government monopoly can be clearly seen through the operations of the US Postal Service. As the postal service is monopolized by the government, almost no other individual or business is allowed to offer letter delivery services. Most letters have to be brought to the post office for mailing. Many non-monopolized businesses, however, are offering delivery mail services.

Privatization of Government-Monopolized Industries
Government monopoly on the sales and manufacture of certain goods and services is considered by many to have posed certain problems on equality. They suppress the rights of people to choose which services or goods they wish to use. They may also hinder fair and sound competition and trade practices.

What May Likely Happen to Industries Monopolized by the Government?
The elimination of government monopoly in some businesses may provide a number of advantages to the citizens of the US as everyone may be able to partake of the competition. Because of the issues surrounding government monopoly and the many groups requesting privatization of some of the businesses operated by the government, it may be that the time will come when many industries will be owned by private owners and the government may no longer discourage fair and sound competition among businesses.