On July 9, 2021, President Biden sign a wide-ranging executive order that promotes competition in markets across the United States economy and is meant to level the playing field for consumers, workers and smaller businesses. Many in the business world stand to benefit from this executive order as small groups like vendors and farmers have voiced support for it.
The economy has gained more than three million jobs since the President took office — the most jobs created in the first five months of any presidency in modern history. The executive order creates a roadmap to build on this economic momentum to promote competition in the American economy, which will lower prices for families, increase wages for workers, and promote innovation and even faster economic growth.
The White House fact sheet of the executive order explains how more than 75% of U.S. industry are now controlled by a smaller number of large companies that make more of the business than they did 20 years ago. This is true across healthcare, financial services, agriculture and more.
The lack of competition is holding back economic growth and innovation. Economists find that as competition declines, productivity growth slows, business investment and innovation decline, and income, wealth, and racial inequality widen.
This historic executive order includes 72 initiatives by more than a dozen federal agencies to swiftly tackle some of the most pressing competition problems across our economy. Once implemented, these initiatives will result in tangible advancements to people’s lives.
Here some notable items from the executive order as described in the White House fact sheet:
- Make it easier to change jobs and help raise wages by banning or limiting non-compete agreements and unnecessary, cumbersome occupational licensing requirements that impede economic mobility.
- Lower prescription drug prices by supporting state and tribal programs that will import safe and cheaper drugs from Canada.
- Save Americans with hearing loss thousands of dollars by allowing hearing aids to be sold over the counter at drug stores.
- Save Americans money on their internet bills by banning excessive early termination fees, requiring clear disclosure of plan costs to facilitate comparison shopping, and ending landlord exclusivity arrangements that stick tenants with only a single internet option.
- Make it easier for people to get refunds from airlines and to comparison shop for flights by requiring clear upfront disclosure of add-on fees.
- Make it easier and cheaper to repair items you own by limiting manufacturers from barring self-repairs or third-party repairs of their products.
- Make it easier and cheaper to switch banks by requiring banks to allow customers to take their financial transaction data with them to a competitor.
- Empower family farmers and increase their incomes by strengthening the Department of Agriculture’s tools to stop the abusive practices of some meat processors.
- Increase opportunities for small businesses by directing all federal agencies to promote greater competition through their procurement and spending decisions.
The new order creates a diverse set of initiatives under one roof. Experts also believe this will create hurdles through the court systems as markets are given time to adjust. Overall, this order is on trend with the current Administration’s commitment on diversity, equity and inclusion.
EDGAR RAFAEL OLIVO is a bilingual business educator, economic advisor, and contributor for several media outlets. He’s a non-profit executive who is passionate about education. He is certified in finance and data analytics and holds a business degree from Arizona State University.
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