The Great American Ripoff is something all Democratic candidates should be talking about

[BeyondGeography]

not just Warren and Sanders.

Link to tweet

...The European economy certainly has its problems, but antitrust policy isn’t one of them. The European Union has kept competition alive by blocking mergers and insisting that established companies make room for new entrants. In telecommunications, smaller companies often have the right to use infrastructure built by the giants. That’s why Philippon’s parents can choose among five internet providers, including a low-cost company that brought down prices for everyone.

The European Union has created an impressively independent competition agency that’s willing to block mergers, like General Electric-Honeywell and Siemens-Alstom. In the United States, the process is more political, and companies spend vastly more money on campaign donations and lobbying. Lobbyists — and, by extension, regulators — justify mergers with dubious theories about money-saving efficiencies. Somehow, though, the efficiencies usually end up raising profits rather than lowering prices.

Whirlpool’s 2006 purchase of Maytag is a good example. The Justice Department rationalized the deal partly by predicting that foreign appliance makers would keep the combined company from raising prices. But Whirlpool later successfully lobbied for tariffs to keep out foreign rivals. Washers, dryers and dishwashers have all become more expensive.

The consolidation of corporate America has become severe enough to have macroeconomic effects. Profits have surged, and wages have stagnated. Investment in new factories and products has also stagnated, because many companies don’t need to innovate to keep profits high. Philippon estimates that the new era of oligopoly costs the typical American household more than $5,000 a year.

[elleng]

1. Right, I've watched antitrust enforcement disappear before my eyes

Last edited Wed Nov 13, 2019, 01:13 AM - Edit history (1)

during the past 30 years.

[BeyondGeography]

9. The trend has not been good

https://money.cnn.com/2016/04/08/news/obama-mergers-antitrust/index.html

Re. the current occupant, the numbers are moving sideways:
https://www.law360.com/articles/1217043/trump-merger-reviews-on-pace-with-obama-dechert-says

[PatrickforO]

3. Excellent post! I call it getting nickel and dimed.

In our capitalist utopia, we pay dearly for very little.

My favorite example is yogurt. You used to be able to buy an 8 ounce cup of yogurt - that was the standard back in the seventies and early eighties.

Now you pay over twice as much for 5.3 ounces.

The Brits call this 'shrinkflation.'

I call it 'shareholder primacy' capitalism.

[JoeOtterbein]

4. K n R ! Thanks for posting!

[ritapria]

5. The two candidates pointing out this rip off

, Sanders and Warren , are labelled Far out Socialists who can not defeat Trump ……..They say highlighting this gross economic injustice will scare off "swing voters" ... Most people in this country are swinging in the economic winds created by these mega corporations and have had enough of this shit ………...

[not fooled]

6. I hope people get it

They are indeed being ripped off right and left. And they can do something about it--learn about the issues, candidates, and then vote. Doing those things takes a lot less time than living with the consequences of bad policies.

[BlueMTexpat]

7. It is apparently

considered to be too "radical."

God help any candidate who really makes waves about it!

[JudyM]

10. K&R

[Uncle Joe]

11. Kicked and recommended.

Thanks for the thread BeyondGeography.

[redqueen]

12. K&R nt