David Dayen writes in The American Prospect about President Biden’s efforts to limit corporate power and spur competition.
Dayen begins:
On July 9, 2021, President Joe Biden signed one of the most sweeping changes to domestic policy since FDR. It was not legislation: His signature climate and health law would take another year to gestate. This was a request that the government get into the business of fostering competition in the U.S. economy again.
Flanked by Cabinet officials and agency heads, Biden condemned Robert Bork’s pro-corporate legal revolution in the 1980s, which destroyed antitrust, leading to concentrated markets, raised prices, suppressed wages, stifled innovation, weakened growth, and robbing citizens of the liberty to pursue their talents. Competition policy, Biden said, “is how we ensure that our economy isn’t about people working for capitalism; it’s about capitalism working for people.”null
The executive order outlines a whopping 72 different actions, but with a coherent objective. It seeks to revert government’s role back to that of the Progressive and New Deal eras. Breaking up monopolies was a priority then, complemented by numerous other initiatives—smarter military procurement, common-carrier requirements, banking regulations, public options—that centered competition as a counterweight to the industrial leviathan.
It’s been a year and a half since Biden signed the executive order; its architect, Tim Wu, has since rotated out of government. Not all of the 72 actions have been completed, though many have. Some were instituted rapidly; others have been agonizing. Some agencies have taken the president’s urging to heart; others haven’t. But the new mindset is apparent.
Seventeen federal agencies are named specifically, tasked with writing rules, tightening guidelines, and ramping up enforcement. I wrote to each agency, asking how they have complied with the order; all of them answered but one (the Federal Deposit Insurance Corporation, whose role is admittedly tangential). Even Cabinet departments that weren’t mentioned wrote in to explain their approach to competition. Clearly, agencies are aware of the emphasis being put on reorienting their mission.
Bringing change to large bureaucracies is often likened to turning around a battleship. One way to get things moving is to have the captain inform every crew member of the intention to turn the battleship around, counseling them to take every action from now on with that battleship-turning goal in mind. The small team that envisioned and executed the competition order put the weight of the presidency behind it, delivering a loud message to return to the fight against concentrations of power. It’s alarming and maybe a little disconcerting that you have to use a high-level form of peer pressure to flip the ship of state. But that battleship is starting to change course.
TIM WU WAS THE FIRST OF THE TRIUMVIRATE of Wu, Khan, and Kanter (a motto emblazoned on mugs by advocates) to actually get appointed in the Biden administration, joining the National Economic Council (NEC) to work on competition policy in early March 2021. Hiring the author of The Curse of Bigness signaled the administration’s strong anti-monopoly thrust. Khan (Lina, chair of the Federal Trade Commission) and Kanter (Jonathan, heading the Justice Department’s Antitrust Division) would arrive later.
The competition order was released four months after Wu’s appointment, but in reality, it was laid out over the previous five years. In that time, a collection of policymakers, journalists, lawyers, politicians, and experts, sometimes known as the New Brandeis movement, warned of the dangers of economic concentration. Wu, Khan, and Kanter were part of this crusade, and prior to the 2020 election, they and others strategized about how to reinvigorate competition policy if Democrats took the presidency.
This is an unusual story about an accomplishment or series of accomplishments that have gone unnoticed. Read on to the end.
Biden needs a PR team to explain what he is working to do to make the economy work better for most Americans. People seem to judge him on his age more than his actions. This is an excellent article on what Biden is doing to make economic policy more fair and balanced.
“Competition policy is how we ensure that our economy isn’t about people working for capitalism; it’s about capitalism working for people.”
Our current version of capitalism is predatory, and Biden wants the federal government to enforce anti-trust laws, end unfair labor practices and “patent pooling.” all of which extend the unfair reach of corporate power. While lobbying is mentioned, Biden’s new economy would be more attainable if lobbying were limited in some way so that policies could not be bought for campaign donations. The White House should seek out more advisors that support a more inclusionary vision for capitalism and keep the old Freidman economists that helped create our massive economic inequality at bay.
If you saw his State of the Union speech, you would have seen a long list of accomplishments. The Infrastructure bill, which will contribute to rebuilding tunnels, bridges, highways, and create tens of thousands of good jobs. The CHIPS act, which encourages high-tech to open factories here. His renewed support for the PRO Act, which supports unionization, but the House will never pass it. Watch the speech. Capping insulin prices at $35 a month. And more.
Agree on more PR needed. I was aware of this in general terms, but googling around, it was probably because a bit of fanfare was made about it last summer on the 1-yr anniversary. We should hear about it more than once a year!
For all his imperfections, the State of the Union address demonstrated a President Biden who is far from feeble, directionless, or duplicitous. Yes, I know, his education policy leaves more than a little to be desired, but taken as whole, there is a definite direction in this administration’s policy agenda. And it’s based largely on evidence and need. To cherry pick what he hasn’t done is to ignore the past 50 years of American politics and life.
As I wrote on the About page on the night of the speech: “For anyone questioning the cognitive and political skills of President Biden, watch how, in the first three minutes of this video, he completely backs republicans in a corner on Social Security, Medicare, and support for older Americans. Not sure I’ve ever seen such a public negotiation and capitulation in public ever. Anyone who still questions if their vote for Biden was correct, watch it a few times. It’s a semester long political behavior class in three minutes.”
After having rewatched the speech twice and other parts more, I’d have to say I wasn’t as positive as I should have been in my first assessment. And if one looks at the foreign stage, we are united on the defense of Ukraine, NATO has not been as effective or relevant since the Cold War, allies respect us but are still very wary about an abrupt reversal after the ’24 elections. They’ve seen too much in the House in just the past few days to confirm they must plan for strategies with and without the U.S. But honestly, even if that whole speech had just been those three minutes, it still would have been one of the most substantive SOTUs I’ve witnessed in my lifetime.
Re: Nato, and most importantly, unified.
Greg, agree. Biden was masterful.
I wonder how many lawsuits have been filed and funded by RED states, ALEC, the Walton foundation, and more of the wealthiest 1%, since that executive order was signed, challenging it as unconstitutional.
I was worried Biden would be Obama 2 (really Clinton 3). He has surprised me. He’s more progressive. Not progressive, but more progressive than his predecessors. And this week, he’s been feisty as can be. Pretty badass, really. I’m impressed.
I agreement 100% with this. Not progressive, but MORE progressive than the Dems have been in a long time. While the Republicans are going full throttle toward fascism.
^^^I AM IN agreement…
I am just happy that Biden is trying to getting us out of the Milton Friedman rabbit hole that we’ve been down for the past forty or more years. People need regulated capitalism as there is no end to their profiteering at the expense of working families, the elderly and our children.