Sunday, April 17, 2016

Monopolies are a part of lower growth

Economists now worry about the concentration of corporate power.  

But monopoly concentration is simply part of lower growth.  See the chart?  The velocity, transaction rate is dropping, but real output, the red line, keeps on climbing.  How do we hav e fewer transaction over time but growth the economy over time?  Simple, we sell larger batches of goods per transaction, that is a monopoly effect.

No comments: