There
is a lot of things to be concerned about in America, one of those things

is the many monopolies happening in America, and how
they are ruining the economy. For those

who don’t know Monopoly is a situation in which a
single company owns all or nearly all or

nearly all the market for a given type of product or
service. So, for example you would say to

your friend; “The taco shops all around my area have
really soaring prices and he responds with

“All of them are owned by the same owner.” That
would-be a form of Monopoly, there are many

point of views for Monopoly depending whether it is
good or if it is bad. Barry C. Lynn of

theatlantic.com argues in their article; “America’s
Monopolies Are Holding Back the

Economy.” That “The effects of monopoly enrage voters
their day to day lives, as they face the

sky-high prices set by drug-company cartels and
abusers cable providers, health insurers, and

airlines. What they mean by this is that the owners of
all those things are just charging more for

their services and making people spend more. They can
do this even if there is high demand

because basically the customer has no choice. This can
also happen with grocery stores when

they raise the prices in poorer areas and they have
less options. Monopolies also lose any

encourage or motivation to innovate, they don’t need
to have new products or improved

products. In fact, A 2017 study by the Nation Bureau
of economic research found that a lot of

businesses in the U.S. have invested less in their
products/services, since 2000. Disruptive

technology is the worst enemy of tv companies or cable
companies’ monopoly because they

don’t rely on cable to send tv shows or movies because
it can do that straight threw digital.

Firms also use tactics to establish monopoly power, so
they can drive potential competitors out

of business. For example, a rich firm can set prices
below the cost of their competitors and take

losses while the other business is not making anything
because that firm has lower prices and

other firm is forced to close their doors because they
can’t afford to go lower and when the other

firm is out of business the firm raises its prices
more than if the market was competitive just so

they can cover the losses they took while establishing
a now dominant market position they have

now.     Although
there is a lot of things bad with monopoly there is also times where is good or

is necessary. It almost guarantees a consistent
delivery of product or service that has an excessive

cost. Such as, dams and electric plants, because it is
very expensive to build new electric plants

and dams because you must pay for various things such as,
builders, workers, and repairs. The

federal governments have regulated these industries to
protect the consumer so they don’t have

to pay sky-high prices such as, the companies could
set prices to gain back what they

lost for a reasonable profit as well. There was much
talk of deregulation in the 1990’s to of

course allow competition which occurred in some cases.
Another way that Monopoly that can

be good for the economy is in research and development
because they make exceptional profit,

which can be used to fund high-cost capital investment
spending such as research. Then, from ‘

that assuming successful research, can be used for
improved products and lower costs in the long

term. This is especially important for
telecommunications and pharmaceuticals. So, without

monopoly power basically means there without monopoly
there may be less development of

medical drugs because they can’t fund the research.
Also with developing drugs, there is a high

risk of failure because it’s a new drug and with monopoly
profits, they give a firm greater

confidence because they have room for mistakes and
fund research that may prove a failure.

A lot of people say that there will be no competition
in monopoly but if a domestic firm may

have monopoly power in the domestic country but face
effective competition in global markets.

With markets continuing to be increasingly globalized,
it must be necessary for a firm to have

domestic monopoly to be competitive internationally.
There is another way that monopoly is

useful and that is to avoid the duplication of
services so if there are 4 bus companies in small 1

town, monopoly would fix it, sure some of the bus
companies would go out of business but it

would be beneficial for the town and its people.

                        There
are several infamous monopolies in the United States and what the

monopolies caused the U.S. to do about them. The very
first monopoly in America was against

the companies “International Harvester” and “American
Tobacco”. “International Harvester”

made cheap agricultural equipment for mostly an
agrarian nation and was considered

untouchable, and “American Tobacco” was accused of
charging soaring prices for cigarettes and

they claimed that it was cure all to asthma to
menstrual cramps. The Sherman Antitrust Act

passed in 1890 under the presidency of Benjamin
Harrison, allowed certain business activities 

 that federal government regulators deem to
be competitive, and recommended the
federal

government to
investigate and pursue trusts. In the general sense, a trust is a
centuries-old legal

arrangement whereby one
party conveys property to a trustee to hold for a beneficiary. The act

also banned monopolistic
combination which gave the government a hammer to smash them.

Still, over the next 50
years more monopolies formed. “Standard Oil” showed the potential

benefits of a monopoly.
When there were several competitors, “Standard Oil” they used leaky

pipes and pumped waste
into the environment, but when “Standard oil” used some shady

business tactics to
monopolize the industry, its size could let it take on other projects other Oil

Companies could not.
Such as, helping build a reliable infrastructure, this helped change the

United States into an
industrial nation. Other contributor is U.S. Steel which showed a

Monopolies limitations.
It did little with its vast resources yet controlled 70% of steel production,

while other firms were
more efficient with they’re 30%. U.S. Steel’s monopoly eventually,

although they still won
a court battle with the Sherman Act.

            In Conclusion, there are a lot of things to be concerned
about in America and how

monopolies effect
America in good and bad also you have learned the history of Americas

monopolies and how they
affected U.S history. So far, the U.S has handled monopolies very well

and hope they continue
to regulate and help the consumer.   

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