Variant Perception’s Founder, Jonathan Tepper discusses the impact of corporate fraud and consolidation on Grant’s Interest Rate Observer Radio
On face value, all seems to be well (in relative terms) in the present day American economy. Certainly for investors, and definitely for multi-national corporations and its board members and chief officers.
Nonetheless, despite quarterly GDP growth and the unemployment rate being at one of its lowest points in American peacetime — there still seems to be an incredibly high amount of economic tension not just around the world, but within American borders.
And as we know, economic dissension always leads to political dissension. And there certainly is enough of the latter. So does that mean the former truly does exist?
According to one of the leading financial experts in the world, the answer is a resounding yes.
“According to US Census data, there’s essentially been a decline in start-ups. Every year there is an exit rate,” said British Rhodes Scholar Chairman, Jonathan Tepper on Grant’s Podcast.
Fewer and fewer Americans are finding themselves to, quite simply, have less and less financial freedom.
That’s never good…
And the real worry of this decline? “[It’s] creating fewer and fewer bigger companies,” said Tepper.
According to Tepper, this shrinking competitive playing field very well is likely lowering the working wages, as well as, in his words, reason for the ‘abnormally high corporate profits.’
Despite the global connectivity of digital media which is supposed to level the playing field, Tepper believes that there’s an even greater consolidation than ever before.
One doesn’t have to take too many guesses on who one of the main culprits are.
“What we’re seeing now is the absence of competition,” Tepper stated. “Some monopolies are obvious, for example Comcast. People don’t really have a choice when it comes to their local cable companies. If you provide a high bill and a poor level of service you’ll have annoyed consumers but, they can’t go anywhere.”
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