The IMF's Report: World May Face a ‘Monopoly Problem’ In The Future

 

The rising power of a few corporate giants could weaken investment, deter innovation, and reduce the share of income paid to workers in advanced economies, according to a new report by the International Monetary Fund (IMF). While the overall macroeconomic effects of the rising “monopoly problem” have been modest so far, further increases in the market power of big companies could become increasingly negative if they were left unchecked.
The problem could take a bigger toll on economic growth and people’s incomes in the future, warned the IMF, which urged policymakers to keep the market competition strong. Speaking at the U.S. Chamber of Commerce, IMF Managing Director Christine Lagarde talked about the increasing concentration of market power in advanced economies. She said a small number of highly successful companies accounted for the “highest price markups.” According to the IMF, the price markup—how much a company charges for its products compared with how much it costs to produce—is a good measurement of market power. When a company’s market power increases, it can maximize its profits by charging a higher price and reducing its output.

 

https://www.theepochtimes.com/lagarde-world-may-face-a-monopoly-problem-in-the-future_2870411.html

 

Share this post


Link to post
Share on other sites

In the same report, the International Monetary Fund cut its outlook for global growth to the lowest since the financial crisis...

 

image.png.c3f404a5b77b9f3e6c89273bb8e652ab.png

Share this post


Link to post
Share on other sites

The monopoly problem is already plaguing the world, due to globalist policies. Lagarde is a pawn ...

  • Like 1

Share this post


Link to post
Share on other sites

IMF could be based in Beijing in a decade, said Lagarde. IMF had hopes and dreams of bringing them into the ‘world order’. 

  • Like 1

Share this post


Link to post
Share on other sites

Just now, damirUSBiH said:

IMF could be based in Beijing in a decade, said Lagarde. IMF had hopes and dreams of bringing them into the ‘world order’. 

By my view, IMF would crave global finance being headquartered in China if it meant integration... nothing strange in this.

Share this post


Link to post
Share on other sites

(edited)

3 hours ago, pinto said:

 

The rising power of a few corporate giants could weaken investment, deter innovation, and reduce the share of income paid to workers in advanced economies, according to a new report by the International Monetary Fund (IMF). While the overall macroeconomic effects of the rising “monopoly problem” have been modest so far, further increases in the market power of big companies could become increasingly negative if they were left unchecked.
The problem could take a bigger toll on economic growth and people’s incomes in the future, warned the IMF, which urged policymakers to keep the market competition strong. Speaking at the U.S. Chamber of Commerce, IMF Managing Director Christine Lagarde talked about the increasing concentration of market power in advanced economies. She said a small number of highly successful companies accounted for the “highest price markups.” According to the IMF, the price markup—how much a company charges for its products compared with how much it costs to produce—is a good measurement of market power. When a company’s market power increases, it can maximize its profits by charging a higher price and reducing its output.

 

https://www.theepochtimes.com/lagarde-world-may-face-a-monopoly-problem-in-the-future_2870411.html

 

In my experience goods and services seem very well priced, especially food but with the exception of housing which seems ridiculously high in or near large cities. One has to take into consideration inflation, which makes everything seem high priced. No loaves of bread for 25 cents or gasoline for 29.9 cents because of inflation and higher taxes. Sales taxes are also double or triple what they used to be.

Inflation and real estate taxes make housing unaffordable for many people. We need to go back to boarding houses and renting rooms like in the forties. Or people who want houses have to move to more rural areas. 

California has lots of very expensive homes and apartments. They just added a solar requirement for all new building. On the helpful side, they are allowing small homes (  Less than half the size of the main home} to be built in the back yard of existing homes. These homes are owned by the original homeowner The bill has been enacted and it will be interesting to see how it works out. The main problem will probably be parking issues. 

Edited by ronwagn

Share this post


Link to post
Share on other sites

1 hour ago, ronwagn said:

Inflation and real estate taxes make housing unaffordable for many people. We need to go back to boarding houses and renting rooms like in the forties. Or people who want houses have to move to more rural areas. 

California has lots of very expensive homes and apartments. They just added a solar requirement for all new building. On the helpful side, they are allowing small homes (  Less than half the size of the main home} to be built in the back yard of existing homes. These homes are owned by the original homeowner The bill has been enacted and it will be interesting to see how it works out. The main problem will probably be parking issues. 

The "market" has come up with the solution. Air B&B attracts the "boarders" who stay in some cases up to six months or more. Some friends of mine were renting out their house while they were out of the country. They were netting about $1500 per month after expenses. Their son hired a friend from college to manage it as an Air B&B and he started netting them $2500/mo for the same space. I was surprised to learn how many people booked it for long terms, but as you say, given how high real estate has risen and given that apartments require long term leases and damage deposits plus first and last month's rent, the Air B&B solution is the new boarding house without the meals. 

Those mini homes in California backyards are the newest rentals

  • Like 1

Share this post


Link to post
Share on other sites

2 hours ago, Ward Smith said:

The "market" has come up with the solution. Air B&B attracts the "boarders" who stay in some cases up to six months or more. Some friends of mine were renting out their house while they were out of the country. They were netting about $1500 per month after expenses. Their son hired a friend from college to manage it as an Air B&B and he started netting them $2500/mo for the same space. I was surprised to learn how many people booked it for long terms, but as you say, given how high real estate has risen and given that apartments require long term leases and damage deposits plus first and last month's rent, the Air B&B solution is the new boarding house without the meals. 

Those mini homes in California backyards are the newest rentals

Thanks, I may be using their service if my family starts bailing out of California. We Winter there. 

Share this post


Link to post
Share on other sites
Sign in to follow this  
Followers 0