How I learned to stop worrying and love American monopolies
The article discusses the author's evolving perspective on American monopolies and market power. Initially concerned about the negative impacts of increased market concentration, the author now sees potential benefits in stronger antitrust enforcement. The Biden administration's focus on antitrust is viewed as a positive shift towards addressing economic inequalities and inefficiencies.
- ▪The author was previously a proponent of the idea that increased market power harms the US economy.
- ▪Evidence suggests that market concentration leads to higher prices, lower wages, and decreased investment.
- ▪The Biden administration's focus on antitrust is seen as a response to economists' concerns about corporate power.
Opening excerpt (first ~120 words) tap to expand
For many years, I was a big proponent of the idea that increased market power was harming the US economy in various ways. In the 2010s, in the economics world, circumstantial evidence began to pile up, implicating increased industrial concentration as the culprit behind a variety of recent negative trends. Here’s what I wrote in 2017, after reading a bunch of that evidence: [B]asically I see the case of the Market Power Story – or any big economic story like this – as detective work. We’re collecting circumstantial evidence, and while no piece of evidence is a smoking gun, each adds to the overall picture. IF the economy were being throttled by increased market power, we’d expect to see: 1. Increased market concentration (Check! See Autor et al.) 2.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Asia Times.
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