US President Joe Biden aims to improve competition within the American economy by curbing the power of large conglomerates. He calls for changes in the aviation industry, pharmaceutical manufacturers, internet companies, banks, and the four major meat processing industries.
The latter primarily affects the “Big Four” meat processors Tyson, JBS, Cargill, and National Beef.
“Four major meat processing companies dominate more than 80% of the beef market, and over the past five years, farmers’ share of the beef price has dropped by more than a quarter – from 51.5% to 37.3% – while the price of beef has increased,” explained the White House.
In numerous sectors, a small number of large companies control a significant portion of the market, the White House stated. This lack of competition drives up consumer prices and suppresses wages. ‘I am a capitalist, and I get it. Capitalism without competition leads to exploitation,’ said Biden.
“The big multinationals are putting American farmers under pressure,” Biden said when signing the order. “Small farmers and agricultural family businesses face rising costs for seed, unfair contracts, shrinking profits, and growing debt,” he added.
Agriculture Secretary Tom Vilsack said his department would act “aggressively” to improve new rules for hog and poultry producers. Due to concentrations of power, most American farmers are ‘bound from start to finish’ by various rules and contracts, meaning there is essentially no ‘free market of supply and demand’ for them.
The lack of competition, along with the resulting higher prices and lower wages, costs the average American family about $5,000 per year. For example, it will soon be prohibited to charge high fees when canceling internet contracts.
Regarding the repair of (electronic) devices, manufacturers will no longer be allowed to forbid buyers from repairing devices themselves or having them repaired. This will also apply to modern heavy agricultural equipment, such as high-tech tractors.
Modeled after the Competition Authority in the European Union, the United States will establish a ‘competition commission.’ Although the powers of this ‘commission’ are not yet clear, it is already evident that Biden’s intervention in ‘corporate and free-market USA’ is large by American standards.