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How does government regulation hurt competition and create monopolies?

My friend posted this on his website: "Big Businesses and monopolies, such as in Health Care and in Finance, are only in power and have such power because it's impossible for any smaller businesses to compete. He then said that Liberals have taken the idea of regulation, intended to bust cartels trusts and monopolies, and have used it to justify massive regulations and requirements in the name of hurting Capitalism. He then said that Big Businesses that can cope with such regulations get to run their industry and thus take advantage of their monopolies (or semi-monopoly) by having prices and quality of service or product anything they would like it to be. He then said that Big Business and Monopolies thrive off tons of regulation to kill of competition, and are only allowed to get so big and powerful because of Government's economic-engineering, and tinkering with the free market. " Um........does that make any sense? please explain!!

Public Comments

1. sounds about right. With regulation Gov't has the power to play favorites and eliminate those that don't comply
2. It is simple. It is the GOP/ Cons that deregulated businesses which allowed them to go unchecked. The rest of the story involves a lot of greed, that went unchecked because of deregulation by the GOP/Cons. Then to pour a bit of salt on the wound the GOP lowered many different types of taxes. For the rich they got a tax break of 1/2 of what they paid 30 years ago.
3. I think your are right, turn the ladies of the night loose and fire all law enforcement! Go back to the wild,wild west!