Here's why consumers have fewer choices than they used to

[IronLionZion]

http://money.cnn.com/2017/12/05/news/companies/corporate-consolidation/index.html?iid=hp-toplead-dom

You've got fewer choices than you used to.
The dominant companies in all kinds of industries now control their markets like never before, thanks in large part to a string of corporate mergers.

"Almost every industry in the United States has become more concentrated over time. That's for sure," said Thomas Philippon, professor of finance at New York University. "All this consolidation has led to less competition, and higher costs for consumers."

More than 75% of U.S. industries have experienced an increase in concentration levels over the last two decades, according to a study by three professors -- Gustavo Grullon of Rice University, Yelena Larkin of York University and Roni Michaely of Cornell.

The trend is a good one for companies. Corporate profits and stock prices are up, and the consolidation and reduced competition is clearly part of the reason, said Larkin. But a lack of competition can lead to higher prices and lost jobs, among other problems.

"Even in cases where prices have fallen, such as airlines, service has deteriorated with the decreased competition," said Dean Baker, co-chairman of the Center for Economic and Policy Research, a liberal think tank.

And Baker says if tax reform does bring about a sharp drop in corporate taxes, that could free up money for companies to make even more acquisitions.

Good for business. Bad for the people.

To quote Toby Keith: We'll put a boot in your ass, it's the American way....

[Brainstormy]

1. thank you, Ronald Reagan. n/t

[Brainstormy]

2. big food consolidation

worries me most, although no one ever talks about it. The world's food supply is rapidly being consolidated by a handful of corporations.

[HAB911]

4. We'll all be paying Nestle for all our water soon

[FarCenter]

3. There is vastly more choice available on line than ever before

25 years ago you had a limited variety of goods available at the bricks and mortar store within driving range.

Plus, web sites like ebay enable the purchase of used goods much more easily than did the classified ads, thrift stores and auction sales in the past.

[IronLionZion]

6. Some of those options may surprise you

one example is a lot of organic or natural foods products may look like some kind of nice small business but they are actually part of large corporate conglomerates that deliberately hide the parent company's name.

It's true that online retailing has helped many legitimate small businesses find customers. That's a good thing.

19 Brands You Didn't Know Were Owned By Giant Corporations
https://www.buzzfeed.com/katienotopoulos/brands-you-didnt-know-were-owned-by-giant-corporations?utm_term=.wyrwe5dgY#.ng0p65av3

These 10 Companies Control Enormous Number Of Consumer Brands
https://www.huffingtonpost.com/2012/04/27/consumer-brands-owned-ten-companies-graphic_n_1458812.html



http://www.dividend.com/how-to-invest/9-companies-that-own-the-worlds-most-popular-brands/


It's great for stock investors. Not so great for consumers.

[FarCenter]

7. Your illustrations show the great amount of choice that consumers have in available products

The fact that this variety is produced by relatively few companies doesn't affect the choice available.

It may allow the producers to raise the prices being charged, but that is a different matter from choice. But note that their are retailers like World Market that are importing goods from small producers all over the world.

I don't think their is any good data that consumer choice is being diminished.

[IronLionZion]

8. My point was fewer companies making it means they can raise prices

they have also killed off popular small brands and used their plants to make the parent company's products. One example is Coca-Cola has bought up regional sodas around the world and promptly killed them off and used their plants to make Coke products.

[FarCenter]

9. The headline of the OP was "Here's why consumers have fewer choices than they used to"

Which doesn't appear to be true.

If Coke bought up a soda bottler in some country, then Coke's products may replace some of the local product. In fact, I'd expect that Coke would still produce the local brands they bought, plus roll out some of their international brands, actually increasing the consumer's choices. The number of drinks available to the consumer goes up.

[Brainstormy]

11. but that isn't more food choices

In fact, it's just the opposite.

[Brainstormy]

10. True, plus

most of those "choices" in the grocery store come from the same manufacturers. Often from the same warehouse. And they're made from an increasingly fewer natural varieties of foods and grains. Lettuce is a prime example. Where there were once hundreds of types grown in the US, now there are only really about three.

[Hoyt]

5. Depends on industry. There are a lot of products we get from big companies that are much cheaper

than they were 10, 20 or more years ago, especially if you factor in what those products do vs. what they used to do. Unfortunately, most of those are produced in other countries.

There are also products/services that I would not want to purchase from mom-and-pop -- or even mid-sized -- companies because the touchy-feelly service might feel better, but the cost would not be competitive.

Nor would I want to fly on a bunch of small airlines.

There is a balancing between monopoly/oligopoly greed and the cost of a bunch of smaller companies having to duplicate the required infrastructure to offer a product at a decent cost. Fact is, things are much more complicated nowadays, which makes it difficult for many industries to support lots of competitors.