The U.S. economy suffers from a lack of competition. President Biden wants to change that.
By: David Leonhardt
July 9, 2021
New York Times
The U.S. economy has been less dynamic in the 21st century, by many measures, than it was in the late 20th century.Get The Morning by email Make sense of the day’s news and ideas with this daily newsletter. Sign up.
Fewer new businesses are starting. Existing businesses have slowed the pace at which they hire new workers (as the chart here shows). Workers are less likely to switch jobs or move to a new city. Companies are investing in new buildings and equipment at a lower rate. And small businesses make up a shrinking share of the economy.
Together, these trends suggest that the economy suffers from a lack of fair competition, many economists believe. Large corporations are often able to increase profits not by providing better products than their rivals but instead by being so big that they exercise power over workers and consumers. The government also plays a role, through policies that protect existing companies at the expense of start-ups and new entrants into an industry.