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Anti-Monopoly Candidates Are Testing a New Politics in the Midterms
by David Dayen
Posted October 25, 207

anti monopoly candidates gaining groundAustin Frerick couldn’t believe the numbers. Last year, while working as an economist at the Office of Tax Analysis in the Obama Treasury Department, Frerick co-wrote a paper on “excess returns,” which he describes as “a fancy way of saying monopoly profits.” And the data was leaping off the charts. “We were seeing returns in places we shouldn’t,” said Frerick, 27. “It’s baby formula, strawberries, crackers. The barriers to entry of making crackers should be next to nothing.”

The paper is focused on tax policy and therefore, somewhat unintelligible. But its conclusion, that outsized profits have been rising across virtually all sectors of the economy, has formed the basis of a newly prominent concern: that too much wealth and power has been concentrated in the hands of a few giant corporations. “It’s the issue of our time,” said Frerick. “It’s everywhere.” More…