The Great Reversal
The Great Reversal is a compelling tale of economic detective work. It argues that the majority of the problems of the American economy are due not to the flaws of capitalism but to the concentration of corporate power. Once a model for the world, American markets are now giving up on healthy competition. Meanwhile, Europe is beating it at its own game. In this much-anticipated book, readers are provided with basic facts and consequences of industry concentration in the U.S. and Europe. It demonstrates how lobbying and campaign contributions have defanged antitrust regulators, and considers what all this means for free trade, technology, and innovation. For the sake of ordinary Americans, the government needs to return to what it once did best: keeping the playing field level for competition.
“[A] superbly argued and important book. America is no longer the home of the free-market economy…The great obstacle to action in the U.S. is the pervasive role of money in politics. The results are the twin evils of oligopoly and oligarchy…Donald Trump is in so many ways a product of the defective capitalism described in The Great Reversal. What the U.S. needs, instead, is another Teddy Roosevelt and his energetic trust-busting. Is that still imaginable? All believers in the virtues of competitive capitalism must hope so.”
— Martin Wolf, Financial Times
“A fascinating case study of rising corporate concentration and why this reflects not just impersonal economic forces but political choices… [Philippon] concludes competition has indeed declined to the detriment of consumers. His novel contribution, though, is to contrast this with the experience of Europe… Where the U.S. was once the world’s teacher, it may be time to be the pupil.”
― Greg Ip, Wall Street Journal
“Fascinating…In one industry after another, [Philippon] writes, a few companies have grown so large that they have the power to keep prices high and wages low. It’s great for those corporations―and bad for almost everyone else…Too often, both parties are still confusing the interests of big business with the national interest. And American families are paying the price.”
— David Leonhardt, New York Times
“Philippon sees today’s Europe, ironically the home of government-driven market intervention, as the place that has figured out how to set markets free by spurring competitiveness and thus keeping services up and prices down…The Great Reversal argues that the United States has much to gain by reforming how domestic markets work but also much to regain―a vitality that has been lost since the Reagan years. We don’t know if Philippon is a fan of Donald Trump, but his analysis points to one way of making America great again: restoring our free-market competitiveness.”
— Arthur Herman, Wall Street Journal
“[A] primer on the recent woes of the U.S. economy…It attributes these troubling developments to a decline in competition that has been brought about in large part by the rise of very powerful technology companies and above all by the lack of enforcement of antitrust policies. Philippon also points to the damaging role of politicians who protect the interests of their wealthy donors by sponsoring and creating loopholes in tax and regulatory laws.”
— Richard N. Cooper, Foreign Affairs
“Examines money in politics, and carefully knocks down tendentious arguments that such behavior does not simply reflect the rich purchasing policy outcomes that benefit themselves…Some of Philippon’s findings are eye-popping.”
— Ryan Cooper, American Prospect
“In this seminal book, economist Philippon uses detailed evidence to argue that, far from being the home of free-market competition, the U.S. today has less competition than the much-maligned EU, particularly in its product markets, which are riddled with monopoly and monopsony. This is not the result of natural forces, but of deliberate policy. Declining competition has raised profits, depressed wages, weakened investment and undermined productivity growth. The U.S. needs a reinvigoration of antitrust.”
“A compelling read for those interested in the dynamics of the overall innovation economy or the political debate over antitrust and Big Tech…A timely analysis of the weakening of America’s regulatory regime for protecting free market competition.”
— Eric Peckham, TechCrunch
“Everyone in tech or interested in tech ought to read this book―it provides a rigorous, but easy-to-grasp look at the economics of consolidation and what it does to markets, prices, and products.”
— Nilay Patel, The Verge
“Should we love American capitalism, or hate it? Are large corporations making our lives better through endless innovation and price reductions, or are they exploiting their workers and their customers to enrich the few? Would European-style regulation make things better, or worse? Thomas Philippon’s eloquent book has the answers. It is an invaluable contribution to one of today’s most important debates.”
— Angus Deaton, Nobel Laureate in Economic Sciences