Bull’s Eye

Direct Hit

America Has a Monopoly Problem—and It’s Huge

There is a widespread sense of powerlessness, both in our economic and political life. We seem no longer to control our own destinies. If we don’t like our Internet company or our cable TV, we either have no place to turn, or the alternative is no better. Monopoly corporations are the primary reason that drug prices in the United States are higher than anywhere else in the world. Whether we like it or not, a company like Equifax can gather data about us, and then blithely take insufficient cyber security measures, exposing half the country to the risk of identity fraud, and then charge us for but a partial restoration of the security that we had before a major breach. 

Century and a quarter ago, America was, in some ways, at a similar juncture: Political and economic power seemed concentrated in a few hands, in ways that were inconsonant with our democratic ideals. We passed the Sherman Anti-Trust Act in 1890, followed in the next quarter-century by other legislation trying to ensure competition in the market place. 

Importantly, these laws were based on the belief that concentrations of economic power inevitably would lead to concentrations in political power. 

Antitrust policy was not based on a finely honed economic analysis, resting on concurrent advances in economics. 

It was really about the nature of our society and democracy. 

But somehow, in the ensuing decades, antitrust was taken over by an army of economists and lawyers.  

They redefined and narrowed the scope, to focus on consumer harm, with strong presumptions that the market was in fact naturally competitive, placing the burden of proof on those who contended otherwise. 

On this basis, it became almost impossible to successfully bring a predatory pricing case: Any attempt to raise prices above costs would instantaneously be met by an onslaught of new firm entry (so it was claimed). Chicago economists would argue—with little backing in either theory or evidence—that one shouldn’t even worry about monopoly: In an innovative economy, monopoly power would only be temporary, and the ensuing contest to become the monopolist maximized innovation and consumer welfare.

DYI:

Not only a monopoly problem but a bloated Federal government working hand and hand fostering the shadow government.  At the very least, the Federal government needs to be reduced by 50% returning power back to the States and local government.

DYI is a Libertarian/capitalists and monopolies suck!  That's right they are anti-competitive and need to be trust busted just as Theodore Roosevelt did in his time.  It is our time…Time to bust the trusts AND bust the size and power of the Federal government.

TYRANNY MUST END…

DYI