The US economy “has become a lot less competitive” in recent years, says Jonathan Tepper in his book The Myth of Capitalism.
Following decades of mergers and acquisitions, four airlines dominate commercial aviation and two firms control 90% of the beer Americans drink. In 1995 the top 100 companies accounted for 53% of the income from publicly traded firms; in 2015 the figure was 84%.
No wonder The Economist has detected a slump in the number of times the words “competition” and “competitor” have been mentioned in annual reports over the past few years. The dearth of competition raises prices for consumers. It also crimps wage growth as firms don’t have to bid for labour against rivals so much.
Viewpoint
“Alison Rose’s elevation to the top job at RBS, where she will succeed Ross McEwan as chief executive, is cause for celebration. Never before has the UK had a woman running one of its big four banks… her elevation comes after a series of high-profile campaigns that have failed to improve women’s lamentably slow climb up the corporate ladder… McKinsey research has shown that companies with the greatest gender diversity in the boardroom are 21% more likely to be more profitable than their peers and 27% more likely to create superior value. These figures are quoted in a recent report for the government by Rose, who was asked to review how banks could better serve women who want to start a new business. To illustrate how sexism is endemic in the finance industry, she pointed out how only 1% of all-female startup companies are backed by venture capital funds.”
The Observer