Strengthen Economic Competition
Background
A well-functioning economy is dependent on healthy and fair market competition. However, across nearly every sector of U.S. economy, from tech to banking to food,[1] just a few companies control most or all of the market. In agriculture, a “get big or get out” federal farm policy has led to fewer farms and farmers and contributed to at least two generations leaving rural communities. Today, many rural communities have only one or two stores, and farmers, ranchers, and other producers have equally few buyers for their goods. The lack of competition means that rural residents face higher consumer prices, lower producer prices, and less choice, while the consolidated business owners – often multinational corporations whose profits are not reinvested in the community – reap the benefits.
Enforcement of antitrust laws at the federal level could significantly help to lower prices, increase wages, expand choice, and redistribute economic power. A July 2021 executive order[2] from the Biden administration and subsequent related orders have taken important steps to address farmer and rancher market access and competition. While most antitrust action happens at the federal level, state policymakers can pass state-level legislation to address the issue by increasing competition for independent businesses. They can also work with state attorneys general to enforce antitrust laws and to work with federal regulators in the Department of Justice or the Federal Trade Commission to object to mergers and acquisitions.[3] States can also address specific harms caused by outsized corporate power. For example, often, farm equipment includes a restrictive contract clause that prohibits the buyer from making repairs, instead requiring the farmer to bring the equipment to the dealer, which is much more expensive and time-consuming. “Right to repair” laws prohibit this arrangement, allowing the end consumer to repair their device, whether it is a combine or a smartphone.[4] [1] Lakhani, Nina. “’They Rake in Profits – Everyone Else Suffers’: US Workers Lose Out as Big Chicken Gets Bigger.” The Guardian, 11 Aug. 2021, https://www.theguardian.com/environment/2021/aug/11/tyson-chicken-indsutry-arkansas-poultry-monopoly. [2] “Fact Sheet: Executive Order on Promoting Competition in the American Economy.” The White House, The United States Government, 22 Jan. 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/09/fact-sheet-executive-order-on-promoting-competition-in-the-american-economy/. [3] State of Iowa Office of the Attorney General. “Miller, State Attorneys General Join FTC in Challenging Sysco-US Foods Merger.” Iowa Attorney General, 19 Feb. 2015, https://www.iowaattorneygeneral.gov/newsroom/miller-state-attorneys-general-join-ftc-in-challenging-sysco-us-foods-merger/. [4] Proctor, Nathan. “Half of U.S. States Looking to Give Americans the Right to Repair.” U.S. PIRG, 10 Mar. 2021, https://uspirg.org/blogs/blog/usp/half-us-states-looking-give-americans-right-repair.
State Policy Priorities
- Support enforcement of antitrust laws.
- Pass state-level “right to repair” laws.
State Examples
- The New York 21st-Century Antitrust Act (2021 NY S 933A) would update antiquated antitrust laws to shift the dominant power of big corporations back to workers, small businesses, and communities.
- The Washington State attorney general sued monopolistic poultry companies for conspiracy and price fixing. State attorneys general can also work with federal regulators in the Department of Justice or the Federal Trade Commission to object to mergers and acquisitions.
- More than 20 states are considering “right to repair” laws, including New York (2021 NY S 149, 2021 NY S 1512) and Oregon (2021 OR HB 2698).
Toolkits
Inspired? Ready to dig in on these issues with your rural neighbors? Our practical communications toolkits will help you connect with new communities through common values. The toolkits provide examples on narrative framing, press release templates, sample talking points, and more.
Click here for the communications toolkit on Promoting Fair Economic Competition.