We hear a lot about mergers these days.
Like the proposed AT & T/Time Warner merger — an $85 billion deal.
Large companies dominate the American economy.
According to the Census Bureau, more and more employees are likely to work for large companies.
(In retail is almost half of its workforce.)
What are the implications?
Among many others: employees with stagnating incomes.
Stanford economists and other business analysts have data showing how in the past companies’ profits were spread around to all.
Now the big pay raises are most likely to be at the top.
The rest — not so much. Or not at all.
Data from the Labor Department shows the big players taking in a larger share of sales and profits.
Larger share than ever before.
To be sure, big mergers make good things happen that benefit us all.
However, all these large companies will send one thing to the “endangered list species”: COMPETITION.
And competition is good.
We don’t want to lose it.
N Pearcey said well:
“Competition is always a good thing.
It forces us to do our best.
A monopoly renders people complacent
and satisfied with mediocrity.”
Thanks for visiting.