Cell phone service that costs $15 a month in France or $12 a month in Australia bills out at an average of $61.85 per month in the United States. High-speed broadband that’s a bit over $31 a month in France or $36 in Germany (for higher speeds and better reliability than almost anywhere in the United States) averages nearly $70 per month in the US. Similar metrics are found with pharmaceuticals, airfares, and medical costs, among dozens of other product and service categories. Why is this? Monopoly.
The average American family pays an annual “monopoly tax”—in additional costs for pretty much everything—of around $5,000, according to economist Thomas Philippon. And things are steadily getting worse as monopolistic concentrations continue to tighten their grip on every American industry from banking to telecom to food.
Monopoly (using the term in its broadest sense, to include everything from a single company controlling a market to a half dozen companies working in a cartel-like fashion) is why working people’s pay hasn’t gone up since 1982 when President Ronald Reagan’s Federal Trade Commission and Department of Justice stopped enforcing the anti-monopoly laws. The rich have gotten fabulously richer since then. Consumers, when harmed or ripped off, have largely been stripped of their legal powers to hold businesses accountable. America now lags behind other countries in innovation, which is why (as one small example) we have the highest pharmaceutical and healthcare costs in the world.
The crisis of corruption is deep and covers every known strain from political, media, business, sexual, moral, and economic. Whatever particular variant is eroding the American way of life, the common denominator is that all serve as a marker of collapse, decay, and rot within the systems, institutions, and organizations that are vital to the sustainment of American society. ~Steve Schmidt
Our streets are filled with guns, our schools have been stripped of books and school supplies, and our food is so deficient in nutrients (vegetables today have about half the nutrients they did in 1950) that we are experiencing a malnutrition-induced obesity epidemic.
Because of monopolies, billionaires pay lower tax rates than you do, and the nation’s largest companies not only usually pay no taxes at all but also get billions every year in subsidies funded with your tax dollars. So many families have fallen out of the middle class that this country is experiencing epidemics of suicide, opioid addiction, and divorce. Our defense budget is bloated, while our returning soldiers find it harder and harder to get jobs or services.
Although it’s almost never discussed in our highly monopolized media, monopoly is why right-wing radio and TV are found in every nook and cranny, every town small and large across America, while progressive media is marginalized. It’s why our politics are broken and foreign governments have been able to manipulate our elections and seize control of so many of our politicians.