Labour’s decision to muzzle regulators in the name of ‘growth’ will backfire horribly | Nicholas Shaxson
JPerhaps you did not notice the UK government decision this week To replace the chair A regulatory body is the Competition and Markets Authority (CMA). But this decision is really important, because the financial market agreement is our strongest defense line against Elon Musk and other technology emperors – and it highlights the danger of the economic agenda of the Labor Party in its position. In order to understand the reason, we have to talk about monopolies.
You may think that with the growth of a company like Amazon, its services will become cheaper because it reaps the savings of size. not so: Research shows The price of sending standard parcels via Amazon in the UK has doubled more than weakness since 2017. At the same time, the income has increased from advertising fees that independent sellers must pay to remain visible to customers: an increase of 17 times from 2017 to 2022. International Research It even shows that Amazon uses her suffocating fist on sellers to earn more than half From sellers ’revenues in the fees. half!
Who is paid in the end? You are doing it, because these sellers must raise their prices to stay on his feet. Special tax fees are similar to consumers and sellers to Bezos Cevity and shareholders in Amazon. Worse, the bases of pricing in Amazon encourage sellers to increase their prices on Amazon. A lawsuit By the American Federal Trade Committee describes this as a “one blow” where sellers must “use the amplifier Amazon prices as a minimum price everywhere.”
The British body in charge of protecting us from such a predation is the Capital Markets Authority, which for years was considered one of the smartest and brave organizational bodies in the world against the strength of the market. When CMA forced Meta to sell GIPHY graphics company in 2021, it was so The first time Any organizational body anywhere in the world dismantled a large technology company – and this dismantling in the United Kingdom (even if part of it was divided only) had a global impact.
Now, with the increasing aggression of the Trump administration with its economic partners, we need to support the financial markets agreement more than ever, to protect the UK economy and the wider public interest.
But this government has become a captive of the opposite idea. Tuesday Dismiss Chairman of the Capital Markets Authority, Marcus Bukerink, after Complaints Among the major commercial pressure groups – instead, Duj Gore, the former Qatari director of Amazon in the United Kingdom and the President of Amazon China, was appointed. Then news appeared on Thursday stating that the Capital Markets Authority was Cut 100 employees. This came after Kiir Starmer The convincing threat At the October Investment Summit, when he warned in a hall full of senior technology officials in the United States that the Capital Markets Authority should “take growth seriously as this hall does” – in an implicit indication that it should be that Deal with technology giants with great caution. then, eye Claire Barclay, a senior Microsoft official, to head the advisory council for industrial strategy.
A strange assumption arose, including between the wealthy layers: that there is a barter between good things such as regulatory protection measures and economic growth. This idea believes that Britain should shake the fierce hands of the Capital Markets Authority to attract investors.
There is no such barter. Endless Research shows We have to raise organizational restrictions enhance monopoly Reduce Growth, harms innovation, undermines resilience, and destroys small companies. It also absorbs the money from the economy: in his book, affiliated,, Businessman and investor Angos Hunton estimates that American companies are paying profits in the country from their operations in the United Kingdom equivalent to 2100 pounds for each family in the United Kingdom, most of which are in a surplus profit body that is not from productive activity but from monopoly.
The health alternative – the pro -prosperity argument for a more balanced economy – was the case Recently shown By CMA Essential Pokers. Whenever the Capital Markets Authority intervened to prevent monopolists from closing the markets, he explained: “We have seen the flow of new investments, from health care and medicines to construction to railway equipment to games to educational programs to digital and artificial intelligence.” Enhancing the choice and addressing the strength of companies leads to low prices, enhancing innovation, and ensures a varied, flexible economy and is able to “recover quickly from external shocks … and avoid falling hostage to individual failure points.” It also maintains the circulation of more wealth locally instead of being absorbed and transferred to shareholders abroad and abroad.
By rejecting this vision of a healthy and balanced economy, this pro -monopoly government revealed that it is anti -business and anti -growth.
The Labor Party plays with fire. Trump and his adult allies in technology will now arm the massive power of social media companies and on a wider scale.Monitoring– They sharpened the manipulation of us at the beginning as shoppers, and now voters – to export a strict right -wing agenda To the United Kingdom Elsewhere. This agenda is also economic, but rather it is somewhat imperialism: they will try to pressure our economy in order to liberate it more from regulatory restrictions so that it becomes easier for American companies to take advantage of us more. Live memory did not witness that we needed this protection more than today – and voters feel this urgent need. The government is determined to destroy them will face extermination.
