The Myth of Capitalism: Monopolies and the Death of Competition

by Jonathan Tepper (Author), Denise Hearn (Contributor)

The Myth of Capitalism tells the story of how America has gone from an open, competitive marketplace to an economy where a few very powerful companies dominate key industries that affect our daily lives. Digital monopolies like Google, Facebook and Amazon act as gatekeepers to the digital world. Amazon is capturing almost all online shopping dollars. We have the illusion of choice, but for most critical decisions, we have only one or two companies, when it comes to high speed Internet, health insurance, medical care, mortgage title insurance, social networks, Internet searches, or even consumer goods like toothpaste. Every day, the average American transfers a little of their pay check to monopolists and oligopolists. The solution is vigorous anti-trust enforcement to return America to a period where competition created higher economic growth, more jobs, higher wages and a level playing field for all. The Myth of Capitalism is the story of industrial concentration, but it matters to everyone, because the stakes could not be higher. It tackles the big questions of: why is the US becoming a more unequal society, why is economic growth anemic despite trillions of dollars of federal debt and money printing, why the number of start-ups has declined, and why are workers losing out

Capitalism is the greatest economic system in history. It has lifted people from poverty and created widespread wealth for billions of people. Unfortunately, the so-called capitalism that exists in today's United States is the antithesis of a competitive marketplace. Monopolies and oligopolies dominate the economy, with a few winners and millions of losers. The Myth of Capitalism explains how we got to this state and clearly points the way back to open markets that work for everyone.

Capitalism without competition is not capitalism, but in industry after industry, competition is dying. Consider these facts:

Four airlines dominate 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 the country's banking assets
More than 75% of households with high-speed Internet access are serviced by a single provider
Many states have health insurance markets where the top two insurers have an 80-90% market share
Many hospitals are local monopolies, and drug companies have monopolies through patents that are endlessly extended
Without competition, everyone suffers. Giant corporations squeeze workers' wages. Companies grow fat with record profits, sending trillions to the wealthiest. Unjust inequality rises. Dominant monopolies choke startups and manipulate markets to their advantage. Voters feel that markets are rigged, and populist politicians triumph. A truly competitive system prevents unjust inequality, averts price gouging, fosters economic growth, and encourages startups.

The Myth of Capitalism bridges the gap between the left and the right. The authors are unabashedly pro-competition, not pro-big business. Big business is not bad, but too often size has come through mergers that have subverted capitalism. The proposed solutions offer a path back to higher economic growth, more jobs, higher wages, and a level playing field for all