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Sample Article Review on the New Era of Monopoly is here

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Sample Article Review on the New Era of Monopoly is here

Income distribution is determined by two factors, namely market competition and free markets’ tendency. These factors have widely influenced the concentration of wealth among a few persons in a large economy. Besides, government policies have also contributed greatly to income inequalities and individuals marginal product. The author notes that economic power has an impact on the ability to control labor markets and so asserts authority over workers. As such, bank managers and others in power have been using their positions to ruin the economy by awarding themselves huge bonuses at the expense of the local workers who work for long hours and extra hard to meet their basic needs (Stiglitz 5).

Income gap is described as the degree to which income spreads in the population in an imbalanced manner. This gap between the rich and the poor has negatively affected both the individuals and economic welfare given that the middle class gets more stressed, angry, and frustrated as they seek to meet their many obligations. This, plus asymmetric information in the marketplace, deters competition in a so called free market. As well, this has been motivated by the low minimum wage in the economy, which has impacted on individuals’ purchasing power, demand for goods, and tax revenues.

The article clearly highlights the correlation between market structures and wealth distribution, giving specific examples on how most corporations such as Microsoft have been using technology to gain market power (Stiglitz 8). However, the article fails to mention what needs to be done to ensure there is equal distribution of wealth. Essentially, the author has acknowledged various economic elements that need to be addressed to warrant an efficient market structure and as well shared prosperity.




Work Cited

Stiglitz, Joseph. “The new era of monopoly is here.” The Guardian 13 May 2016. 


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