A brilliant, enraging op-ed in the Washington Post from analysts from the New America Foundation and the American Antitrust Institute shows how the Reagan-era policy of encouraging monopolistic corporate behavior has made America unequal and uncompetitive, creating a horror Gilded Age where the Congressional consensus is that laws cannot possibly put a check on bad corporate actors.
It's another look at the problems set out in Matt Taibbi's brilliant book The Divide, tracing the policies that created both the private prison industry and banks so big that even the most depraved criminality can't be punished lest the bank tremble and collapse on wider society.
Particularly galling and illuminating is a quote from a Goldman Sachs report that advises investors to seek out "oligopolistic market structure[s]" where there's "lower competitive intensity, greater stickiness and pricing power with customers due to reduced choice" as the ideal way to maximize your return on capital.
While dwindling competition hurts the vast majority of Americans, for the well-off it often proves a path to huge payoffs. Indeed, it has even become a basic formula for successful investing. Goldman Sachs in February published a research memo advising investors to seek out “oligopolistic market structure[s]” in which “a smaller set of relevant peers faces lower competitive intensity, greater stickiness and pricing power with customers due to reduced choice, scale cost benefits including stronger leverage over suppliers, and higher barriers to new entrants all at once.” Goldman went on to highlight a few markets, including beer, where dramatic consolidation over the past decade has enabled dominant companies to use their market power to extract more from suppliers and consumers — and thereby enrich investors.
How America became uncompetitive and unequal [Lina Khan and Sandeep Vaheesan/Washington Post]
Earlier this month, I gave the afternoon keynote at the Internet Archive’s Decentralized Web Summit, and my talk was about how the people who founded the web with the idea of having an open, decentralized system ended up building a system that is increasingly monopolized by a few companies — and how we can prevent the same things from happening next time.
Corrections Corporation of America (CCA) is one of the world’s largest private jailers; it runs prisons and immigration detention centers across the USA (and is diversifying into halfway houses, mental health center, and surveillance for poor neighborhoods). Mother Jones’s Shane Bauer went undercover at CCA’s Winn Prison in Louisiana, the state with the highest incarceration […]
Steven Levy is in characteristic excellent form in a long piece on Medium about the internal vogue for machine learning at Google; drawing on the contacts he made with In the Plex, his must-read 2012 biography of the company, Levy paints a picture of a company that’s being utterly remade around newly ascendant machine learning […]
Some truths are universal. For one, your phone will always run out of power when you most need it. For another, the charging cords that come packaged with your Apple device will fray, split, and rip faster than Usain Bolt in a game of tag.Instead, pick up a charging cord that anyone would have a tough […]
Some people say magic tricks are nerdy and best left to your 12-year-old asthmatic cousin. But others see value in perfecting the slight of hand and showmanship associated with a perfectly executed routine. We’re firmly in the latter camp. And now, we’re giving you the ability to put a few parlor tricks up your sleeve with the Penguin […]
Bluetooth speakers may be convenient to use, but many of them just aren’t that powerful. Sure, it may be fine if you’re seated in front of the speaker. But move across the room, and you may strain to hear what’s coming from those tiny drivers.There’s a reason why the G-BOOM Wireless Bluetooth Boombox (now $79.99 in the Boing […]