'Capitalism Without Competition Isn’t Capitalism; It’s Exploitation'
Biden explains expansive pro-competitive executive order
The course of big business for American consumers, generally, has not been good for American workers or consumers in recent decades.
More and more power has become consolidated in the hands of fewer mega-corporations.
And, that, in turn, has hurt workers and consumers in their pocketbooks.
“The heart of American capitalism is a simple idea: open and fair competition — that means that if your companies want to win your business, they have to go out and they have to up their game; better prices and services; new ideas and products,” President Biden said Friday afternoon at the White House. “That competition keeps the economy moving and keeps it growing. Fair competition is why capitalism has been the world’s greatest force for prosperity and growth.
“By the same token, ‘competitive economy’ means companies must do all they do to do — everything they do to compete for workers: offering higher wages, more flexible hours, better benefits,” he added. “But what we’ve seen over the past few decades is less competition and more concentration that holds our economy back. We see it in big agriculture, in big tech, in big pharma. The list goes on.
“Rather than competing for consumers, they are consuming their competitors. Rather than competing for workers, they’re finding ways to gain the upper hand on labor. And too often, the government has actually made it harder for new companies to break in and compete,” Biden said.
The president's remarks were designed to explain the rationale for the sweeping executive order he signed Friday which takes a number of steps aimed at reinvigorating competition in the US economy and ensuring fairness and benefits for American workers and consumers.
The new executive order will impact everything from Internet service, to the purchase of hearing aids, to help for American farmers.
“When corporations have that kind of leverage over workers, it pushes down wages by up to 17 percent. And as competition decreases, businesses don’t feel the pressure to innovate or invest in their workforce. That hurts working families and it hurts our economy,” Biden said. “All told, between rising prices and lowering wages, lack of competition costs the median American household $5,000 a year.
“Now, look, I’m a proud capitalist. I spent most of my career representing the corporate state of Delaware. I know America can’t succeed unless American business succeeds,” he added. “But let me be very clear: Capitalism without competition isn’t capitalism; it’s exploitation. Without healthy competition, big players can change and charge whatever they want and treat you however they want. And for too many Americans, that means accepting a bad deal for things that can’t go — you can’t go without.
“So, we know we’ve got a problem — a major problem. But we also have an incredible opportunity. We can bring back more competition to more of the country, helping entrepreneurs and small businesses get in the game, helping workers get a better deal, helping families save money every month. The good news is: We’ve done it before,” he added.
Biden's new executive order also won praise from the Center for American Progress, a Democratic-oriented think tank in Washington DC.
“For decades, everyday Americans have borne the brunt of higher prices and lower wages as an increasingly small number of corporations have dominated the U.S. economy due to unfair, anti-competitive practices. Anti-competitive behavior by large corporations has made it more difficult to change jobs, start a business, get the care you need to stay healthy, or even fix a product that you already own,” said Andres Vinelli, vice president for Economic Policy at the center. “Economists have long cited anti-competitive practices as a drag on economic growth and a driver of both economic inequality and the racial wealth gap.
“With today’s executive order, President Biden is leveling the playing field for consumers, workers, farmers, patients, and small-business owners. Today’s executive order directly addresses some of the most egregious anti-competitive practices in banking, tech, agriculture, health care, transportation, and labor,” Vinelli added. “This executive order, along with the policies contained within the bipartisan infrastructure framework and the administration’s Build Back Better plan, will help the country to recover from the coronavirus crisis more quickly and equitably as well as generate a new era of long-term economic growth.”
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