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.