American capitalism is broken

David Leonhardt writing for The New York Times on American capitalism and Elizabeth Warren's proposed bill in the Senate:

In the years that followed, corporate America largely followed this prescription. Not every executive did, of course, and management and labor still had bitter disputes. But most executives behaved as if they cared about their workers and communities. C.E.O.s accepted pay packages that today look like a pittance. Middle-class incomes rose faster in the 1950s and 1960s than incomes at the top. Imagine that: declining income inequality.

And the economy — and American business — boomed during this period, just as Benton and his fellow chieftains had predicted.

Things began to change in the 1970s. Facing more global competition and higher energy prices, and with Great Depression memories fading, executives became more aggressive. They decided that their sole mission was maximizing shareholder value. They fought for deregulation, reduced taxes, union-free workplaces, lower wages and much, much higher pay for themselves. They justified it all with promises of a wonderful new economic boom. That boom never arrived.

Even when economic growth has been decent, as it is now, most of the bounty has flowed to the top. Median weekly earnings have grown a miserly 0.1 percent a year since 1979. The typical American family today has a lower net worth than the typical family did 20 years ago. Life expectancy, shockingly, has fallen this decade.

Income inequality is too real.

Free market capitalism sounds great to some, and so does not having speed limits for automobiles, but the truth is we need regulations. They exist for a reason and they serve a real purpose.

Spotify: “Mom! Apple isn’t playing fairrrrr”

Spotify: Apple is holding up app approval to squash competition:

Like other apps, Spotify had been getting customers to foot the bill for Apple's App Store billing fees by charging an extra $3 a month. It recently launched a promotion for the second time that gave new users three months of service for a dollar, if they signed up on the web. As you can imagine, that didn't make Apple too happy, and the company reportedly threatened to pull the app entirely unless Spotify stopped pushing the deal for iPhone owners. It complied with the request, but it also nixed the iTunes billing option in the iOS version which lead to the current dispute.

On one hand, I feel like this ends up hurting happy Spotify and Apple customers. Elizabeth Warren recently accused Apple, Amazon, and Google of anti-competitive practices. This issue with Spotify only adds fuel to the fire.

On the other hand, why should Apple make and exception for Spotify and wave the App Store fee? It seems as though the Google Play store also charges 30% fees like Apple.

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