America's Monopolies Are Worse Than We Thought: Article Analysis

Monopolies are on the rise and wiping out the small businesses. This is bad news for consumers, because where monopolies are concerned there are also higher prices, limited markets, and the degradation of our economy. Just to add the cherry on top, monopolies are diminishing the labor force, as they use machines to replace their workers.

This article, America’s Monopoly Problem, was composed by Derek Thompson and published on the Atlantic Newsletter: For much of the 20th century, small businesses thrived and there was a steady control over big businesses, but in the more recent years, our economy is seeing more large, monopolistic firms popping up in all types of industries. Political power also comes into play under the issue of monopolies.

As monopolies grow, labor then decrease because these companies are spending on capital to increase production and efficiency, which the labor force can’t guarantee. As companies continue to build more machines and replace their employees, they take in more money and continue to grow, along with their power, and dominate the markets. Another factor that is allowing monopolies to increase, is the lack of antitrust enforcement. In 1890, congress passed the Sherman Antitrust Act to keep big business in check, but if the laws aren’t being enforced it doesn’t serve much of a purpose. One would think of regulation as a positive thing in many areas of the government, but in the case of monopolies, it is only benefitting them and hurting small businesses, the opposite of what the consumers are in need of. Barriers to entry can cause businesses to shy away from competing in the markets where monopolies are concerned since they have a much lower chance of making it after all the money they would need to shell out in order to get into the race with the monopolistic