Mega-Mergers Mean Concentrated Wealth
Michael Boskin claims that mega-mergers are inevitable and are positive since they produce more “efficiency†in the American economy, which will in turn lead to the increase of the American standard of living (“Mergers Reflect Natural Evolution of Dynamic, Complex Economy,†Sept. 10).
Just because mega-mergers have a tendency to occur does not mean they represent a positive change for the American economy and for everyone as a whole. In fact, these mergers just lead to the further concentration of wealth and power into fewer and fewer hands as well as fewer well-paying middle- and upper-class jobs. The recent merger of Chemical Bank and Chase Manhattan Bank will result in the loss of 12,000 jobs!
Boskin talks in terms of greater efficiency, but efficiency for whom? Usually, this just means more profits for the principal stockholders. This does not necessarily mean reinvestment into the American economy nor the average American worker.
Mega-mergers have been an ongoing issue since at least the dawn of the Industrial Revolution and will continue to be so. In the past, America has responded by passing items such as the Sherman Antitrust Act. America must renew its commitment that mega-mergers are not good and start enforcing existing antitrust laws once again.
STEWART CHESLER
North Hollywood
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