Since the 1970s, America’s antitrust policy regime has been weakening and market power has been on the rise. High market concentration—in which fewer firms exist in a given market—is one troubling symptom and cause of market power. From 1985 to 2017, we saw an increase in the annual number of mergers from 2,308 to 15,361.
A Missing Link: The Role of Antitrust Law in Rectifying Employer Power in Our High-Profit, Low-Wage Economy
The American economy no longer functions to the benefit of American workers. Despite record profits and increased productivity, wages have been stagnant. In fact, despite being 75 percent more productive in 2016 than in 1973, the average worker earned just 12 percent more. An emerging body of research chronicles the extent of labor market monopsony—where
Stock buybacks are having their day in the news—and state policymakers have the ability to end the dominance of this “shareholder first” behavior. Businesses have seen a massive tax cut as a result of the GOP tax law, but the jobs promised with the Tax Cuts and Job Act have yet to materialize. Instead, companies
Today, the Roosevelt Institute released Powerless: How Lax Antitrust and Concentrated Market Power Rig the Economy Against American Workers, Consumers, and Communities, a report I wrote with my colleagues Eric Harris Bernstein and John Sturm. In this report, we catalog the growing body of evidence that strongly supports our view that the economy is afflicted
Powerless: How Lax Antitrust and Concentrated Market Power Rig the Economy Against American Workers, Consumers, and Communities
As workers, as consumers, and as citizens, Americans are increasingly powerless in today’s economy. A 40-year assault on antitrust and competition policy—the laws and regulations meant to guard against the concentration of power in private hands—has tipped the economy in favor of powerful corporations and their shareholders. Under the false assumption that the unencumbered ambitions
Last week, a bipartisan group of senators voted to roll back regulations put in place in the wake of the 2008 financial crisis. Those regulations rewrote the rules of our banking system that had long prioritized profits over people—a system that for generations exploited and perpetuated racial inequities and ultimately foiled the financial wellbeing of
The dramatic rise in stock buybacks following the passage of the GOP tax plan, also known as the Tax Cut and Jobs Act, has elevated the role stock buybacks play in on our economy. Estimates have shown more than $100 billion in new stock buyback programs have been authorized since the tax law’s passage. Additionally,
Testimony In Support Of: SB 475: “An Act Studying the Effect of Federal Tax Reform on Hedge Funds and Investment Management Firms in This State.”
Submitted testimony from Lenore Palladino, Senior Economist and Policy Counsel, Roosevelt Institute March 15, 2018 Dear Senator Martin, Senator Winfield, Representative Lesser and Members of the Banking Committee: My name is Lenore Palladino. I am a Senior Economist and Policy Counsel at the Roosevelt Institute. Thank you for the opportunity to testify before you
In the middle of the 20th century, it came to be believed that “a rising tide lifts all boats”: economic growth would bring increasing wealth and higher living standards to all sections of society. At the time, there was some evidence behind that claim. In the ensuing economic and political debate, this “rising-tide hypothesis” evolved
Presentation to the Congressional Antitrust Caucus, Panel Remarks February 16, 2018 Today, economists and average Americans are confused by the same puzzle: We see historically high corporate profits and low corporate investment. In a productive economy, high profits and low investment aren’t supposed to occur simultaneously. So how do we explain what is going on?