Capitalism without competition is not capitalism", writes Jonathan Tepper in "The Myth of Capitalism". He is right. After decades when most economists dismissed anti-trust actions as superfluous so long as consumers were not the victims of price-gouging, we are slowly waking up to the reality that monopoly capitalism is back.
In industry after industry, competition is dying. Consider these facts:
- Four airlines dominate the American airline traffic, often enjoying local monopolies or duopolies in their regional hubs
- Two corporations control 90% of the beer Americans drink
- Five banks control over half of America's banking assets
- More than 75% of American households with high-speed Internet access are serviced by a single provider
This is a book about American capitalism but you only have to look at our local duopoly Woolworths and Coles and your daily grocery bill to know that everything he writes in his book is equally true in Australia.
