President Donald Trump’s economic advisers are skeptical about rewriting antitrust rules to tackle the growing power of tech giants, according to the latest annual Economic Report of the President. The Council of Economic Advisers argue that the monopolistic power wielded by the Masters of the Universe are signs of “competitive success.”
The annual report, which is produced by the Council of Economic Advisers, challenges the idea that the market concentration of big tech companies is bad for consumers.
Via the New York Times:
In its report, the Trump administration contends that the studies that demonstrate rising market concentration in the economy are flawed — and that the rise of large companies may not be a bad thing for consumers.
“Concentration may be driven by economies of scale and scope that can lower costs for consumers,” the report reads. “Also, successful firms tend to grow, and it is important that antitrust enforcement and competition policy not be used to punish firms for their competitive success.”
The report also blames government regulation — and not the outsourcing of labor to Mexico and the Far East — for the decline in blue-collar jobs over the past few decades.
In recent decades, the report says, the government disproportionately regulated industries like manufacturing “that offer fulfilling, blue collar jobs for the majority of Americans who do not have a college degree.”
“These misguided policy decisions,” it continues, “imposed real-world costs that created barriers to success and prosperity for hardworking Americans. Those days are over.”
While the Council of Economic Advisers has taken a stance casting doubt on the growing monopoly power of big tech companies, Trump’s Department of Justice has taken a different approach. In July last year, the DOJ announced an antitrust probe of America’s biggest tech companies.
In a statement at the time, the DOJ said its probe would examine “whether and how market-leading online platforms have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers.”
Allum Bokhari is the senior technology correspondent at Breitbart News.