Cover: The Great Reversal: How America Gave Up on Free Markets, from Harvard University PressCover: The Great Reversal in HARDCOVER

The Great Reversal

How America Gave Up on Free Markets

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Product Details

HARDCOVER

$29.95 • £23.95 • €27.00

ISBN 9780674237544

Publication Date: 10/29/2019

Trade

368 pages

6-1/8 x 9-1/4 inches

70 illus., 17 tables

Belknap Press

World

On APM’s Marketplace, listen to Thomas Philippon explain to David Brancaccio how increases in lobbying against competition and poor regulatory oversight led to higher prices for consumer goods and utilities in the United States compared to Europe—a complete reversal:

In this much-anticipated book, a leading economist argues that many key problems of the American economy are due not to the flaws of capitalism or the inevitabilities of globalization but to the concentration of corporate power. By lobbying against competition, the biggest firms drive profits higher while depressing wages and limiting opportunities for investment, innovation, and growth.

Why are cell-phone plans so much more expensive in the United States than in Europe? It seems a simple question. But the search for an answer took Thomas Philippon on an unexpected journey through some of the most complex and hotly debated issues in modern economics. Ultimately he reached his surprising conclusion: American markets, once a model for the world, are giving up on healthy competition. Sector after economic sector is more concentrated than it was twenty years ago, dominated by fewer and bigger players who lobby politicians aggressively to protect and expand their profit margins. Across the country, this drives up prices while driving down investment, productivity, growth, and wages, resulting in more inequality. Meanwhile, Europe—long dismissed for competitive sclerosis and weak antitrust—is beating America at its own game.

Philippon, one of the world’s leading economists, did not expect these conclusions in the age of Silicon Valley start-ups and millennial millionaires. But the data from his cutting-edge research proved undeniable. In this compelling tale of economic detective work, we follow him as he works out the basic facts and consequences of industry concentration in the U.S. and Europe, shows how lobbying and campaign contributions have defanged antitrust regulators, and considers what all this means for free trade, technology, and innovation. For the sake of ordinary Americans, he concludes, government needs to return to what it once did best: keeping the playing field level for competition. It’s time to make American markets great—and free—again.

From Our Blog

Jacket: The Condemnation of Blackness: Race, Crime, and the Making of Modern Urban America, by Khalil Gibran Muhammad, from Harvard University Press

“Predictive Policing” and Racial Profiling

While technology used in policing has improved, it hasn’t progressed, says Khalil Gibran Muhammad, if racial biases are built into those new technologies. This excerpt from his book, The Condemnation of Blackness: Race, Crime, and the Making of Modern Urban America, shows that for the reform called for by the current protests against systemic racism and racially-biased policing to be fulfilled, the police—especially those at the top—will need to change their pre-programmed views on race and the way they see the Black citizens they are supposed to “serve and protect.”