President says competition order will restore ‘heart’ of capitalism
Monopolistic practice targeted
WASHINGTON — President Joe Biden signed an order to expand competition across the economy and crack down on monopolistic practices, describing a misguided 40-year “experiment” in letting U.S. corporations consolidate with little regulation that he said has hurt ordinary Americans.
The order targets three industrial sectors where his administration believes consolidation has led to higher prices — agriculture, technology and drugs.
“The heart of American capitalism is a simple idea: open and fair competition,” Biden said in a speech before signing the measure.
He called himself a “proud capitalist” but said that he wants to “ensure our economy isn’t about people working for capitalism, it’s about capitalism working for people.”
He pinned blame for the rapid growth of U.S. corporations and their influence in society on Republican governments.
“Forty years ago we chose the wrong path, in my view,” he said, a date that would correspond with the beginning of Ronald Reagan’s presidency.
“We are now 40 years into the experiment of letting giant corporations acquire more and more power,” he said, and charged the result has been slower economic growth and a declining standard of living. “I believe the experiment has failed.”
The order aims to “reverse these dangerous trends.”
It directs more than a dozen federal agencies to begin 72 initiatives to strengthen competition.
While large business lobbies in Washington criticized Biden’s approach, stocks took the news in stride as the benchmark S&P 500 reached another intraday high, rebounding from Thursday’s selloff. The Dow Jones and Nasdaq indexes also rallied.
The Health and Human Services Department will be directed to come up with a plan within 45 days to counter high drug prices.
The Agriculture Department is directed to make it easier for cow, pig and poultry farmers to sue slaughterhouses if they’re underpaid.
And the Federal Communications Commission and Federal Trade Commission are instructed to establish rules for internet providers and tech companies’ use of data.