Corporate Concentration and Its Threat to Small Businesses in America

Wednesday, 13 March 2024, 17:30

The U.S. is currently experiencing a generational boom in small business startups, driven by a strong fiscal stimulus and labor market. However, the dominance of large corporations poses a threat to this growth, leading to an increasingly consolidated economy and less resilient supply chains. While the Federal Trade Commission and Department of Justice have made progress in antitrust enforcement, economic concentration continues to rise, endangering new businesses. Structural barriers must be addressed to sustain the small business boom and promote equitable growth.

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The Impact of Corporate Concentration

Our economy has grown more consolidated, our supply chains less resilient, and our communities more dependent on large corporations that extract more than they contribute to local economies. Communities with more small businesses have higher income growth and lower poverty rates.

Structural Barriers to Growth

Dominant firms crush smaller companies and discourage new entrants.
Small businesses face challenges in a concentrated economy.
Market power of large corporations threatens the success of new businesses.

Government Actions and Solutions

The Federal Trade Commission and Department of Justice have made progress in antitrust enforcement.
Reviving existing authorities can ensure a level playing field for small businesses.
Congress should advance goals through progressive taxation and industrial policies.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.