Oh Yes, American Industries Are Much More Concentrated Than They Used to Be

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

Tyler Cowen is skeptical that there are very many sectors of the US economy that have become more concentrated:

Or ask yourself a simple question — in how many sectors of the American economy do I, as a consumer, feel that concentration has gone up and real choice has gone down? Hospitals, yes. Cable TV? Sort of, but keep in mind that program quality and choice wasn’t available at all not too long ago. What else? There are Dollar Stores, Wal-Mart, Amazon, eBay, and used goods on the internet. Government schools. Hospitals. Government. Did I mention government?

This is very un-Tylerlike. Off the top of my head, here are a dozen more:

  1. Airlines
  2. National accounting firms
  3. Telephone companies
  4. Search engines
  5. Household appliances
  6. Drugstores
  7. Health insurance companies
  8. Banks
  9. Hardware stores
  10. Bookstores
  11. Beer
  12. Supermarkets

Note that high concentrations don’t necessarily mean less consumer choice. Amazon has wiped out nearly the entire bookstore industry, but my choice of books from Amazon alone is probably better than my choice from all my local bookstores combined two decades ago. The problem with highly concentrated industries is that they have too much pricing power; they inhibit innovation; and they wield too much influence over policymaking. Consumer choice is a red herring, and the sooner we focus our attention on other aspects of oligopoly the better off we’ll be.

We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

payment methods

We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate