Economic understanding by Americans is alarmingly naive. We believe in “free” markets over regulation as a tenet of faith regardless of the reality staring us in the face. Markets are wonderfully efficient machines at allocating resources and products among the billions of possible choices. When markets are competitive our economy is efficient and works fine.
The merger wave since 1980 has continually accelerated such that many industries are no longer competitive. What this market power has done is to increase consumer prices for goods and channel more of America’s wealth to those who own the shares of these corporations and away from workers.
Any job and income program must begin with enforcing our anti-trust laws, creating actual competition between companies. For example, health insurance companies have an exemption from anti-trust laws and eliminating this privilege would lower insurance costs.
Americans must demand competitive markets, not “free” markets.
