On July 09, Pres. Biden issued a sweeping executive order containing 72 directives aimed at reigning in powerhouse capitalists dominating various U.S. markets. In rationalizing his administration’s purpose for issuing the executive order, the new POTUS remarked that the core of American capitalism is founded on a simple concept: “open and fair competition.”

Along with several members of the White House cabinet, Biden asserted that keeps the economy growing.

“Competition is the major force that keeps the economy moving toward growth and prosperity.”

 

The 72 initiatives reflects a major change in Democratic policy making processes, to which a new generation of economists conducted research studies in advocating changes aimed at protecting workers and consumers. The studies support arguments that link high prices and unfair wages to consolidated corporate capitalism.

As it is, Pres. Biden’s new executive order signifies the start of policy shifts that focus on corporate behavior and their impact on consumers. To which the White House administration expects strong resistance from companies that will seek relief by filing legal cases in courts, where some have demonstrated skepticism over arguments over competition.

All things considered, the effectiveness of the new executive order relies heavily on the efficiency of concerned federal agencies in enacting and enforcing the changes, which could take several months before any concrete actions will be carried out. ,

Examples of Sectors that the Biden Administration Identified as In Need of Reforms

The new executive order signed by President Biden enumerated 72 initiatives that aim to implement business reforms particularly in relation to competition. Below are some examples of issues that federal agencies must address:

The Food and Drug Administration (FDA) has been tasked to work toward allowing the importation of cheaper drugs manufactured by Canadian pharmaceutical companies. In addition, the order includes permitting over-the-counter sale of hearing aids as a means to reduce costs to consumers by hundreds of dollars.

The Department of Transportation must compel airlines to provide details about the “add-on fees” charged for seating provisions and baggage services. Moreover, reforms must be instituted to make it easier for consumers to claim refunds on canceled flights.

Federal regulators should institute changes to limit the provisions of “noncompete agreements,” which usually prevent employees from switching to jobs offered by competitors.

Financial regulators must require banks to furnish customers data related to their financial transaction even when they transfer to a competitor bank.

The Biden executive order directs regulators to put in place new rules that would put an end to “unfair methods of competition” adopted by online marketplaces for ecommerce like Amazon and app stores like Apple.

Federal regulators are to take direct aim at at the ability of tech companies to merge as a way solidify their influence over American and dominance in the industry by acquiring the companies of upcoming rivals.

Regulators have been specifically tasked to support leading antitrust agencies like the Federal Trade Commissions and the Department of Justice and Federal Trade Commission in preventing employers from unifying in order to reduce employee benefits as well as suppress wages.