Thread by @econliberties

Today’s record-shattering merger frenzy is supercharging the concentration of wealth and power in America.

Our new policy quick-take shows the consequences of the merger boom and outlines solutions for policymakers to save jobs and slow inequality.
economicliberties.us/our-work/merge…

2/ The brief specifically finds many record-breaking stats in 2021, including:
⚠️merger activity reached $5.8 trillion
⚠️private equity spent more than $1 trillion on deals
⚠️banks announced a larger total deal value in M&As in the first half of 2021 than all of 2020

3/ The creation and preservation of good jobs, the revitalization of small business, and the promotion of competitive markets are essential to a healthy, resilient, and just economy.

4/ But COVID-19 and policymakers’ response to it has instead facilitated a rapid economic restructuring that is exacerbating already extreme levels of corporate concentration across the economy through a massive increase in mergers.

https://twitter.com/MorePerfectUS/status/1480226894037630977

5/ Policymakers must move quickly to put the brakes on corporate consolidation or the short and longer-term efforts to strengthen the American economy will be in serious jeopardy.

6/ Most immediately, rampant consolidation results in mass layoffs and further drive down wages in communities around the country if policymakers are unable to adequately intervene.
washingtonpost.com/outlook/2021/1…

7/ Ballooning stock prices have driven up company valuations, resulting in more companies willing to sell at today's high prices.

But in scale and scope, the current tidal wave of mergers and buyouts is bigger than ever before...

8/ The merger wave also endangers many Biden admin objectives, from addressing economic inequality and insecurity to strengthening supply chain resiliency, rebalancing bargaining power between labor and employers.

Thankfully, the admin has taken action to combat corporate power.

9/ By mandating in its EO on competition, @POTUS is urging every federal agency take on the problem of corporate concentration.

The @FTC is also laying the groundwork to fully restore the agency’s ability to address rampant consolidation. But more work still remains.

10/ The policy brief outlines next steps, including:
✅Congress should include prohibitions against M&As in legislation
✅Agencies should signal to corps that they shouldn’t expect biz as usual
✅Agencies should end the use of settlements & divestments for merger transactions

11/11 Any policymaker that cares about reining in Big Tech, creating good jobs, ensuring start-ups and honest businesses have a fair shot, or strengthening consumers' power in the marketplace should view this massive merger frenzy as a five-alarm fire.
economicliberties.us/our-work/merge…