“It’s exploitation”
Biden criticizes US capitalism
7/20/2023 8:23 am
Ex-President Trump is considered an advocate of capitalism, his successor Joe Biden laments his weaknesses. He sees four decades of “misguided economic philosophy.” With reforms, he wants to ensure fair competition again – also on the housing market.
US President Joe Biden has linked a new push for consumer protection with criticism of American capitalism. “We cannot accept bad mergers that result in mass layoffs, higher prices and fewer opportunities for workers and consumers,” Biden said at a White House meeting of his competition council. “I’ve said it before, capitalism without competition isn’t capitalism. It’s exploitation.” It’s about basic fairness. “People are tired of being taken for fools.”
The President’s Office complained that four decades of “misguided economic philosophy” had led to increasing corporate concentration in three quarters of the US economy. This costs the average US household up to $5,000 a year in higher prices and lower wages. It was the fifth meeting of the council that Biden had launched by decree about two years ago. Among other things, draft guidelines have now been presented that are intended to pave the way for stricter requirements for takeovers and mergers of large tech companies such as Amazon or Alphabet.
Fight the additional costs
In addition, the government is extending its measures against hidden costs and fees to the housing market. In the USA, these additional costs, known as “junk fees” or “surprise fees”, can increase the final costs by up to 20 percent over the stated price. According to Biden, three of the largest rental housing platforms – Zillow, Apartments.com and AffordableHousing.com – have already announced that they will disclose the total rental costs. These included application fees, which can be $100 or more per application, and surcharges, some of which are charged for paying rent online.
As part of this push, the government got some US airlines to scrap the fees they charged for allowing children to sit with their parents. The campaign against hidden costs has met with broad bipartisan and public support. The economy, on the other hand, complains about stricter requirements and accuses the government of exceeding its powers with the regulations. In the United States, there are presidential and congressional elections next year. Biden is likely to run for a second term.