The Age of Monopoly

The United States is in the middle of a huge consolidation of big companies in a wide range of industries: beer, health insurance, food and air travel to mention just four industries.  Only four airlines now control 70% of air travel; the biggest five commercial banks hold half the nation’s bank assets; Expedia- Orbitz and Priceline control all online travel vendors, as so on, adinfinitum.

I remember meeting, through a neighbour, a senior staff member of the Anti-Trust Department of the US government.  When I hinted, with a friendly smile,  that I thought perhaps he and his colleagues should be more active (cheeky!) he turned away and ignored me.  But I was right, and Obama has done a dire job (no job at all) in reining back the goliaths, the banks being the most obvious case of all, followed closely by health insurers.   None of the huge mega-mergers are being challenged, ss far as I know.    Frightened of their power, of being accused of being anti- business?  It was a Republican, Teddy Roosevelt, who originally tackled the huge 19th Century monopolies; now we have them back, assisted by a Democrat!

One Comment

  1. If something is too big to fail, it is too big to exist. Anything that if collapses, would have a catastrophic effect on the US economy, ought to be broken up.
    Having said that, the American people seem to like big companies. Take one of your examples: beer. Americas like the familiarity of a big brand- it guarantees a certain quality in exchange for a relatively low price. It may be boring, but at least you know what you’re getting. Personally I think American beer is disguising, I prefer the stronger European brands. But those companies are successful becuase they make products people like.

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