Because there is a decided bias in the actions of technology companies, against a significant number of their so-called “customers” (actually, their “pawns,” as these companies sell the data of users of their services), the matter of breaking up large monopolies like Facebook, Twitter and Google is often discussed.
But other companies, termed “monopsonies” – are also in the cross-hairs of those who study the nation’s dominant buyers. University faculty have decided that, rather than focusing on the malfeasance of the tech companies, they’ll study WalMart and other large buyers, in order to determine their growth in “buying power.” Thus, a recent finding is that for manufacturers, wholesalers, and shipping companies these “dominant buyers” have grown to represent 20-25% of sales, compared with10% in the early 1980s. One might ask, “So what?” WalMart and other major retailers (aka “dominant buyers”) have grown in size by that amount in that time period, as well. But, well, you see – the academics have decided to declare that the larger percentage of “dominant buyers” from these companies are the cause of the falling wages at their suppliers. Really – ? How unbelievably prejudiced can academics be? Apparently, “long-stagnant wages have focused academic attention on monopsony power.” What – ? Do they not remember that we were in a recession from 2008-2016? I have yet to remember a time in our nation’s history when wages were rising unabated during a recession! They are certainly beginning to rise at the present time, because we how have a booming economy. So, I would say that the Sloan School of Management data collection was done during the years previous to 2017 and is just now being published – typical for the turnaround of academic publishing. Regardless, it will be interesting to see if anyone will pay any attention to their clamoring for the WalMarts and other large retailers to be “broken up” because they’re too powerful. Would you, the reader of this post please forgive me if I close by saying, “Give me a break!!!”
And, with that, we at Change Strategists, Inc. would like to wish our clients and readers the very Happiest of New Years! Here’s to 2019 – with trust busting to be entered into only for those who actually deserve it!