WSJ: Why Americans Are More Likely to Work for a Large Employer, in 20 Charts
Huge companies dominate American economic life well beyond employment. They ring up a disproportionate share of sales for goods and services, both to consumers and to other businesses.
Scale alone isn’t bad. It can bring substantial efficiencies. National cellular providers can spare customers the complexity and expense of roaming charges. At the same time, scale begets scale as big companies reinforce one another. Big retailers prefer big distributors. Big manufacturers need big suppliers.
Over time, economists say, nimble new companies should form to challenge sprawling incumbents. That isn’t happening as much these days. Young firms often fail or are absorbed by existing giants. The problem now is that business formation has slowed.
— Will Truman (@trumwill) April 7, 2017