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>So high profits and high inflation suggests an economy dominated by monopolies Low unemployment points is a tight labor market, meaning there is also competit

>So high profits and high inflation suggests an economy dominated by monopolies Low unemployment points is a tight labor market, meaning there is also competition to get workers. And the economy is hardly dominated by monopolies. Take a moment to tally where all of your money is spent, and see how many of those companies are anywhere near a monopoly. The vast majority of people's expenses is spent in competitive markets: housing, food, energy (no company is a monopoly in any of those markets - largest housing company has < 10% of market share, largest bank has < 20% of market, largest energy company has < 30% of market share).

lkrubner 4y ago
Competition has decreased throughout the economy. There are several ways to measure this. New firm creation in the USA has been in steady decline since the 1970s, and the explosion of software startups has not been enough to offset the rapid disappearance of industrial startups. Or, to take another measure, in 1999 there were 8,000 companies listed on USA stock markets, but now there are only 3,400 companies. Consolidation has moved at a rapid pace. Here is another take on the subject: https://www.irishtimes.com/business/economy/paul-krugman-monopoly-capitalism-is-killing-us-economy-1.2615956 https://www.irishtimes.com/business/economy/paul-krugman-mon...
- ChrisLomont 4y ago
  First you claim >So high profits and high inflation suggests an economy dominated by monopolies, then pivot to >Competition has decreased throughout the economy. Competition decreasing is a far cry proving "an economy dominated by monopolies," which is simply not true. >Or, to take another measure, in 1999 there were 8,000 companies listed on USA stock markets, but now there are only 3,400 companies That says more about stock markets than number of companies. Fortunately the Census Bureau tracks relevant facts (and there are more at the BLS), and their data puts literally millions more businesses in 2019 [1] (the last year they have data) than in 1999 [2]. And nothing in their data supports "suggests an economy dominated by monopolies". Care to explain how you measure dominated? As is most of consumer money is spent there? As in the majority of businesses? As in what? [1] https://www.census.gov/data/datasets/2019/econ/susb/2019-susb.html https://www.census.gov/data/datasets/2019/econ/susb/2019-sus... [2] https://www.census.gov/data/datasets/1999/econ/susb/1999-susb.html https://www.census.gov/data/datasets/1999/econ/susb/1999-sus...
  - lkrubner 4y ago
    High profits and high inflation suggests an economy dominated by monopolies. You won’t get the combination of high profits and high inflation in eras when competition is running hot.
    - ChrisLomont 4y ago
      >High profits and high inflation suggests an economy dominated by monopolies High inflation means values are simply bigger, with no other changes needed, so increased profits are exactly expected in high inflation (along with high revenues, high prices, high costs, high spending, .... that is the definition of inflation). So your claim that larger numbers "suggests an economy dominated by monopolies" is demonstrably not true. It can merely be inflation with zero other changes.

lkrubner 4y ago

Competition has decreased throughout the economy. There are several ways to measure this. New firm creation in the USA has been in steady decline since the 1970s, and the explosion of software startups has not been enough to offset the rapid disappearance of industrial startups. Or, to take another measure, in 1999 there were 8,000 companies listed on USA stock markets, but now there are only 3,400 companies. Consolidation has moved at a rapid pace. Here is another take on the subject: https://www.irishtimes.com/business/economy/paul-krugman-monopoly-capitalism-is-killing-us-economy-1.2615956 https://www.irishtimes.com/business/economy/paul-krugman-mon...

ChrisLomont 4y ago
First you claim >So high profits and high inflation suggests an economy dominated by monopolies, then pivot to >Competition has decreased throughout the economy. Competition decreasing is a far cry proving "an economy dominated by monopolies," which is simply not true. >Or, to take another measure, in 1999 there were 8,000 companies listed on USA stock markets, but now there are only 3,400 companies That says more about stock markets than number of companies. Fortunately the Census Bureau tracks relevant facts (and there are more at the BLS), and their data puts literally millions more businesses in 2019 [1] (the last year they have data) than in 1999 [2]. And nothing in their data supports "suggests an economy dominated by monopolies". Care to explain how you measure dominated? As is most of consumer money is spent there? As in the majority of businesses? As in what? [1] https://www.census.gov/data/datasets/2019/econ/susb/2019-susb.html https://www.census.gov/data/datasets/2019/econ/susb/2019-sus... [2] https://www.census.gov/data/datasets/1999/econ/susb/1999-susb.html https://www.census.gov/data/datasets/1999/econ/susb/1999-sus...
- lkrubner 4y ago
  High profits and high inflation suggests an economy dominated by monopolies. You won’t get the combination of high profits and high inflation in eras when competition is running hot.
  - ChrisLomont 4y ago
    >High profits and high inflation suggests an economy dominated by monopolies High inflation means values are simply bigger, with no other changes needed, so increased profits are exactly expected in high inflation (along with high revenues, high prices, high costs, high spending, .... that is the definition of inflation). So your claim that larger numbers "suggests an economy dominated by monopolies" is demonstrably not true. It can merely be inflation with zero other changes.