Thread by @ThomasPHI2

Publication Day!

This is it, the Great Reversal is coming out today. Thank you for all the support, comments and criticism.

Today: What is the Punch Line?

Answer: $1 Trillion.

Let me explain this surprisingly large number. (1/5)

Monopolization in the American economy has increased the cost of the basket of goods and services consumed by a typical household by 5 to 10 percent. Returning to healthy competition (as circa 2000) would save *directly* at least $300 per month per household. (2/5)

That's a direct saving of about $600 billion per year. But as economists we know that this is only part of the story. Competition forces firms to invest. Taking that into account, I estimate that (private) GDP would increased by about $1 trillion. But there is more... (3/5)

Competition would also redistribute income. Bringing competition back would increase wages and decrease payouts (dividends and buybacks). Private labor income would increase by about $1.25 trillion, while profits would decrease by about $250 billion. (4/5)

(5/5) Recall that according to @gabriel_zucman the wealth tax would raise about $260 billion per year.

Whatever your political preferences, the case for implementing a pro-competition policy is strong!

Read the book and make up you mind:
amazon.com/dp/0674237544/…