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Good Morning. The University of Michigan orders students to stay home. Georgia has two close Senate races. And the Justice Department is suing Google.
When two Stanford University graduates, Sergey Brin and Larry Page, founded Google in 1998, the US economy looked different than it is today.
For one thing, large companies weren’t that dominant. Small businesses – companies with fewer than 100 employees – combined still employed more Americans than companies with 1,000 or more employers:
The economy also performed better in the late 1990s than it did recently. At that time, income and wealth rose and fell across the economic spectrum. In recent years, profits have slowed or stopped for any group except the very rich.
The link between these two trends – the rise in corporate concentration and the slowdown in living standards for most Americans – explains why the country may be on the verge of a new era of betrayal.
If so, yesterday could mark the beginning of that era. The Justice Department filed a lawsuit against Google, accusing it of having an illegal monopoly on internet search and search advertising. State officials are also investigating the company, and both federal and state officials are investigating Facebook, Amazon, and a few other large companies.
The common thread in these investigations is the concern that large corporations have become so powerful that they are bad for the country. They can distort government policy through lobbyists, lawyers and campaign donations. Companies can keep wages down because workers do not always have good employment alternatives. And companies often squeeze or buy competitors who threaten their position.
Google differs from previous giants in that it doesn’t charge any money for many of its products (like web search). But there is still cause for concern about its dominance. Control over web search can charge high ads, a particular problem for small businesses. It can also harm consumers by cluttering its search results with ads and knowing that users cannot simply use a competing search engine.
Geoffrey Fowler of the Washington Post ran a clever experiment this week comparing the quality of Google search in 2020 and 2000. His conclusion: “Google is increasingly failing us.” Tim Wu, an antitrust expert, told me yesterday: “A secure monopoly does not have to improve its product.”
Google denies this criticism, saying that people use it “because they choose to, not because they are forced to”. The economist Pierre Lemieux has previously argued that antitrust action against Google is unnecessary because the dominance of the internet is often temporary.
Whatever the outcome of the case, it will most likely be years before this happens, writes The Times’ Shira Ovide. And no single case will change the direction of the US economy. But a bigger campaign against monopoly could be. While increasing corporate concentration is hardly the only reason so many families have problems, it seems to be an important one.
It’s also the rare area of economic policy with a bipartisan agreement, notes Sarah Miller, an antitrust attorney who heads the American Economic Liberties Project. The Trump administration brought the Google case with encouragement from Democrats and Republicans in Congress.
How often do Attorney General William Barr and Senator Elizabeth Warren agree, as asked by Recode’s Peter Kafka?
For more:
THE LATEST NEWS
THE VIRUS
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One morning read: The United States has 95 million cattle, all of which emit methane, which is warming the planet. Scientists hope that changes in the animals’ diets could help slow climate change.
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Lived life: British rocker Spencer Davis led one of the most successful bands of the 1960s with hits like “Gimme Some Lovin ‘” and “I’m a Man”. Davis died at the age of 81.
IDEA OF THE DAY: Radiance against clichés
This season’s Los Angeles Dodgers have a payroll of $ 108 million, the second largest in baseball. The Tampa Bay Rays, who play the Dodgers in the World Series, have a payroll of $ 28 million, the third smallest.
How do the rays compete? By constantly looking for little perks and ignoring some old baseball stereotypes. Some examples:
For years, teams have only trusted one pitcher to finish close games (and earn saves as the statistic is known). This year 13 different Rays pitchers have recorded a save. The team chooses the best pitcher for the situation rather than following a formula.
For years, baseball purists have insisted that “little ball” – like Bunting – is a superior form of game. The Rays prefer the long ball: In the first three rounds of this year’s playoffs, they scored 72 percent of their runs on home runs, notes Tyler Kepner of The Times.
And for years broadcasters and managers have been talking about the importance of “momentum”. But in a crucial game on Saturday night, the Rays removed their best pitcher despite he threw a shutout because they didn’t think he was the best bet to get the remaining outs. They have won.
In order to win the title, the Rays now have to reverse the supposed momentum of the Dodgers: Los Angeles won Game 1 8: 3 last night.
PLAY, WATCH, EAT, MUSEUM
A crisis for museums
As American museums reopen, their guides are looking to Europe, where many museums have been open since May, for a preview of what to expect. And it looks bleak. The number of visitors to many European cultural institutions is well below half of the previous year.
The situation in the US could be even more difficult. Europe’s museums tend to receive more funding from the government, and several countries, including France and Germany, have announced additional bailouts for the arts. In the US, museums are more reliant on revenue from ticket sales and facility rentals.
In response, American museums are trying to get creative. Some Pittsburgh foundations have put in place emergency programs to help the Andy Warhol Museum and others. The Levine Museum of the New South in Charlotte, NC has attracted virtual visitors with advanced online programs (though it’s not easy to make money from).
However, these solutions will probably not be enough to keep the museums at their previous size. Even the Metropolitan Museum of Art, with endowment assets of $ 3.3 billion, has reduced its workforce by 20 percent. “What is unique about the American system of funding culture,” a Met spokesman told CNBC, “is the philanthropy that funds many of the things our society values.”
Making sausage rolls
This recipe flutes off North African flavors to refine a classic sausage bun, resulting in a generously flavored version filled with lamb and harissa paste.
Distractions
Games
The pangram from yesterday’s Spelling Bee was a script. Today’s puzzle is up – or you can play online if you have a game subscription.
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