Chicago finance professor Raghuram Rajan suggests that free markets need populist support against an unholy alliance of private-sector and state elites.

John Fourier

2019-05-21 12:37:00 Tue ET

Chicago finance professor Raghuram Rajan shows that free markets need populist support against an unholy alliance of private-sector and state elites. When a few corporations dominate the U.S. economy, this oligopoly inevitably teams up with the primary instruments of state control for greater rent protection, political clout, and economic power concentration. Regulatory efforts should thus strike a delicate balance between legitimate antitrust scrutiny and capitalist productivity. In the post-modern era of global supply chains, American corporations benefit from enormous economies of scale and scope, network effects, and real-time data analytics for continual efficiency gains and performance improvements.

For instance, Amazon uses fast algorithms to learn from its internal real-time data to optimize delivery times, retail prices, and customer services etc; Facebook and Google applies artificial intelligence to optimize the dual-platform experiences of both mobile web users and advertisers; Apple monopolizes iOS app usage on its proprietary App Store online marketplace. These oligopolies often leverage their market power to charge higher mark-ups to the detriment of active users worldwide. Despite these key anticompetitive practices, the right regulatory response requires rebalancing the current oligopolistic industries to promote meaningful competition. U.S. capitalism needs bottom-up populist reforms and democratic communities to preserve trust in the vibrant market economy.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
President Trump unveils his ambitious $1.5 trillion public infrastructure plan.
Daisy Harvey

2018-02-11 07:30:00 Sunday ET

President Trump unveils his ambitious $1.5 trillion public infrastructure plan.

President Trump unveils his ambitious $1.5 trillion public infrastructure plan. Trump proposes offering $100 billion in federal incentives to encourage stat

+See More
President Trump criticizes the potential media merger between AT&T and Time Warner.
Chanel Holden

2017-11-05 09:45:00 Sunday ET

President Trump criticizes the potential media merger between AT&T and Time Warner.

President Trump criticizes the potential media merger between AT&T and Time Warner, the latter of which owns the anti-Trump media network CNN. President

+See More
Warren Buffett points out that American children will be better off than their parents in the next decades.
Dan Rochefort

2018-01-05 07:37:00 Friday ET

Warren Buffett points out that American children will be better off than their parents in the next decades.

Warren Buffett cleverly points out that American children will not only be better off than their parents, but the former will also enjoy higher living stand

+See More
The Trump administration blames China for egregious currency misalignment.
Olivia London

2018-10-17 12:33:00 Wednesday ET

The Trump administration blames China for egregious currency misalignment.

The Trump administration blames China for egregious currency misalignment, but this criticism cannot confirm *currency manipulation* on the part of the Chin

+See More
Amazon, Berkshire Hathaway, and JPMorgan Chase establish a new company to reduce U.S. employee health care costs.
Joseph Corr

2018-01-23 06:38:00 Tuesday ET

Amazon, Berkshire Hathaway, and JPMorgan Chase establish a new company to reduce U.S. employee health care costs.

Amazon, Berkshire Hathaway, and JPMorgan Chase establish a new company to reduce U.S. employee health care costs in negotiations with drugmakers, doctors, a

+See More
Tech companies seek to serve as quasi-financial intermediaries.
Amy Hamilton

2019-03-03 10:39:00 Sunday ET

Tech companies seek to serve as quasi-financial intermediaries.

Tech companies seek to serve as quasi-financial intermediaries. Retail traders can list items for sale on eBay and then acquire these items economically on

+See More