The US election and oligopolies

Whatever else the U.S. election means for a variety of issues and groups, among the biggest winners are oligopolies. That's not just my opinion; it is the opinion of the pro-business Wall Street Journal (“Another Winner Is Big Business”, 11/4/04).

The Bush administration makes no secret of its pro-business policies. But it might be more accurate to call them pro-big business strategies. And more such activities will come. As the article puts it, “many companies and industries expect specific gains from new federal policies and programs, and the Republican Party's stronger hand in Congress will mean that those legislative proposals will face relatively fewer hurdles.”

Among the areas where big business expects to gain:

• The government to reduce corporate liability by putting limits on jury awards and class-action suits.
• Privatizing social security and pushing for health savings accounts, which will tend to flood the stock market with new private investment money, much to the advantage of most publicly-traded companies and especially of the financial service companies.
• A further relaxing of environmental policies to the advantage of manufacturers.
• Few restrictions on coal, oil, and natural gas companies.
• No move on fuel economy standards, to the delight of the auto industry.
• A loosening of labor rules and nor raise in the minimum wage, a big plus for the McDonalds' and Wal-marts of the world.
• No fear that the government would bargain directly with drug companies to lower drug prices for Medicare and Medicaid recipients.
• An open checkbook for defense contractors, especially those favored by the government.
• A continuation of the tendency to allow big media companies redefine the copyright laws.
• No limits on outsourcing, relocating companies operations abroad, or any restraint on free trade.
• Making permanent tax cuts for big companies and for their richly rewarded CEOs.
• Even the tobacco industry may see some relief from government regulation and a settlement of federal lawsuits.
• A continued easing of antitrust regulation.
• In general, an invitation for the biggest companies to help draft regulations and laws and sit on key advisory groups