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Comment by whimsicalism | Hacker News Reader

This is how markets function - rising profits for vets will encourage more providers to enter the market.

e: Sorry, sometimes forget what kind of science denialism is cool now. Climate denial out, economics denial in.

Nope. Barriers to entry in the market (securing capital for initial expenditures, rising rents, rising malpractice liabilities) will make providers take positions at the PE-owned practices. Monopolization works in both directions.

As profit increases, those barriers become increasingly more worth it to climb.

Increasing profits does not make start up costs worse.

The disproportionate-to-profit (or income) rise in secondary education costs, however, will. And that rise has the same underlying cause - the search for more money.

The barriers go up higher as the increased profits are funneled towards the creation of new regulations to prevent competition.

But this isn't the kind of thing that happens overnight. It takes a very long time for people to notice the profits, more people to choose to enter the veterinary field, and for them to finish education and move on to launch their own clinics.

There's also a secondary problem whereby the existing chains can incentivize new vet grads to simply join up. Why go through all of the risk and trouble of starting your own clinic when the local chain is offering a huge sign-on bonus and reasonable annual salary?

I'm sure that'll be a huge relief to all the people who no longer afford healthcare for their pets. Maybe they simply should have not been poor!

See multiple other people on this thread discussing how their vets are not taking any new customers & not raising prices.

Artificial price caps set by legislation or "benevolent" collusion of owners will only lead to fewer pets being treated overall.

This is just basic microeconomics.

Come on! Navie understanding of the market/society is a virtue. Profit is always bad for public good. The market is just failing everywhere. Captial investment is ruining everything. Downvotes prove you are wrong.

Where is anyone saying that? They are saying Cartels are bad. Artificially capturing the market so you can dictate pricing or can push hard upsells and no longer worry about customer good will because there is no longer an alternative decent vet to deal with is not creating 'public good'.

Totally agree, capturing the market should get government approval first. All the chain businesses should be banned, of course the ones you agree with can remain open.

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