Mergers, Increased Prices, Inflation, Oligarchies and Monopolizing Economic Sectors

In October 2016 AT&T announced that it intended to buy Time Warner Cable for $84.5 billion. The merger would create one of the biggest media companies in the history of the U.S. The announcement sparked criticism from Congressional Democrats and Republicans who argued that huge corporate mergers create monopolies which prevent competition. Competition is what drives economies and businesses to do better in a global economy, these type of mergers should not be allowed and rationed to a percentage of the market in the national economy in which it is in. Since President Obama took office his administration has prevented several mega-mergers from taking place including Sprint and T-Mobile, AT&T and T-Mobile and Allergan and Pfizer. In 2015 $3.8 trillion dollar’s worth of mergers and acquisitions occurred which made it the largest year for corporate consolidation in the history of the U.S. Mergers are only created to raise prices on the consumer, driving up inflation and scarcity to those who should be able to afford the service or product within that economic sector. Free trade should not be stifled in this effect with foreign competitors. Consumers should have access to any world product at a competitive price according to world supply and demand. Proponents of mergers argue that the government should not interfere with corporations and the free market should be allowed to run its own course.