![]() ![]() A recent report from the Department of Treasury found that lack of competition is associated with wage declines of approximately 20% relative to the wages in a fully competitive market. When there are fewer employers competing to hire and retain workers, employees tend to have lower wages and less bargaining power. Second, a lack of competition can hurt workers. A study of airline mergers similarly found that prices increased between 7.2% and 29.4% in markets where the merging airlines previously competed directly. ![]() A review of hospital mergers found they typically led to a 20% price increase for hospital care in already concentrated markets. Some of the best evidence we have on the effects of competition comes from looking at what happens to prices after a merger. First, it can raise the prices facing consumers. Lack of competition hurts everyday Americans in multiple ways. economy has become increasingly concentrated over the past 20 years. Good things flow when firms must compete: innovation, new business models, increased resiliency, and creative ideas. Addressing these unfair business practices is just the latest success in the president’s agenda to restore healthy competition - the foundation of capitalism - to America’s economy. Brian Deese serves as the Director of the National Economic Council.Ĭongress recently answered President Biden’s call for reform in the State of the Union by passing bipartisan legislation to crack down on excessive fees and other unfair practices in the ocean shipping industry. Cecilia Rouse serves as the 30th Chair of the Council of Economic Advisers. ![]()
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