The Federal Reserve, Itself A Monopoly Price Fixer, Worries About Monopolies?
Monopolies were once defined as a grant of exclusive privilege for something by a government, which is really the right definition even today. Without government support, they do not long survive in a reasonably free market. With government support, they can last a long time and cause great economic harm. The Fed’s monopoly on money has been especially destructive.
(From Bloomberg)
The concentration of market power in a handful of companies lies behind several disturbing trends in the U.S. economy, like the deepening of inequality and financial instability, two Federal Reserve Board economists say in a new paper. Isabel Cairo and Jae Sim identify a decline in competition, with large firms controlling more of their markets, as a common cause in a series of important shifts over the last 4 decades.
As government regulation and the crony capitalist system has expanded, both fed by the Fed, so too have market concentrations.
This article was originally posted here: https://www.ac2news.com/2020/08/the-federal-reserve-itself-a-monopoly-price-fixer-worries-about-monopolies/.
