Corporate concentration

The creep of consolidation across America’s corporate landscape

PROFITS are an essential part of capitalism. They give investors a return, encourage innovation and signal where resources should be invested. Their accumulation allows investment in bold new ventures. But high profits across a whole economy can be a sign of sickness. In America, corporate profits are at near-record highs relative to GDP. There are a number of reasons for this. One factor is the creeping consolidation of industries in recent years.

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