Why we can't shop our way to a better economy | Stacy Mitchell | TEDxDirigo

Summary

This speech highlights the dangers of concentrated corporate power, drawing parallels between the British East India Company and today's large corporations. It critiques how big companies, through political influence, have consolidated power in sectors like banking, food, and retail, often at the expense of local businesses and communities. While consumer-driven movements like shopping locally and using small banks are growing, the speaker argues that systemic change is needed. The call to action emphasizes collective political action, pushing for policies that promote local economies, fairer competition, and reduce corporate dominance.

Takeaways

• 💡 The Boston Tea Party was more an act of corporate sabotage than a tax revolt, targeting the British East India Company's monopoly and special tax exemptions.
• 🏢 Large corporations dominate various sectors of the economy today, similar to historical monopolies, such as big banks and food companies controlling most of their markets.
• 🐄 Over 40% of the nation's milk supply is processed by a single company, leading to less competition and fairness for dairy farmers and consumers.
• 🛒 Wal-Mart now captures a significant portion of the grocery market, with 25% of consumer spending, contributing to further market concentration.
• 💻 One-third of all online shopping in the U.S. comes from a single company, showing extreme consolidation in the retail sector.
• 🏦 Big banks are less efficient and more disconnected from local communities, whereas local banks are better at making nuanced lending decisions.
• 🌾 Small farms produce more per acre than large farms with less environmental impact, but big agriculture dominates due to government subsidies.
• 🏬 Local pharmacies are rare, except in North Dakota, where unique laws protect local ownership, resulting in more pharmacies and lower drug prices.
• 🔄 The trend of local markets and businesses growing reflects a shift in consumer behavior, but a larger, collective political movement is needed to create lasting change.
• 👥 Consumer choices alone are insufficient to solve the problem of corporate concentration; citizens must act collectively to change policies and promote a fairer economy.

Q & A

What was the Boston Tea Party primarily about according to the speaker?

The Boston Tea Party was primarily an act of corporate sabotage. The ships were owned by the British East India Company, and the Tea Act allowed the company to sell tea without paying taxes, which undercut local merchants.

How does the speaker connect the Boston Tea Party to present-day economic conditions?

The speaker connects the Boston Tea Party to today by highlighting how concentrated economic power and political influence, similar to the British East India Company's situation, still dominate sectors of the modern economy.

What trend does the speaker mention regarding the consolidation of the banking system?

The speaker notes that the banking system, which was more diversified in the 1990s, is now controlled by a few large banks. This consolidation has led to fewer small businesses and slower job growth in regions dominated by big banks.

What is the impact of consolidation in the food industry according to the speaker?

Consolidation in the food industry has led to a situation where a few large companies control significant parts of the supply chain. For example, over 40% of the nation's milk is processed by a single company, which makes it harder for dairy farmers to get a fair price and limits consumer choices.

What does the speaker suggest is the problem with consumer-based solutions to economic consolidation?

The speaker argues that consumer-based solutions alone, such as changing shopping habits, are insufficient to address economic consolidation. These actions don't fully acknowledge how the concentration of power came about and fail to address the underlying policies driving the problem.

What example does the speaker give to illustrate the inefficiency of large banks?

The speaker explains that while large banks are thought to be more efficient, studies show that small regional banks are actually more efficient. Large banks become bureaucratically top-heavy and less able to make nuanced decisions about small business loans.

How has consolidation in retail affected the job market, according to the speaker?

The rise of big box retail has eliminated many middle-class jobs, particularly in manufacturing and small businesses. In exchange, it has created mostly low-wage retail jobs, with many workers relying on food stamps to get by.

What unique situation does the speaker highlight about pharmacies in North Dakota?

The speaker highlights that North Dakota, under a unique state law, requires pharmacies to be locally owned, which has resulted in more pharmacies, especially in rural areas, and lower prescription drug prices compared to other states.

What is the speaker's concern about relying solely on consumer choices for change?

The speaker is concerned that relying solely on consumer choices is a weak strategy because individuals acting alone have limited power. Real change requires collective action to alter the policies that create limited consumer choices in the first place.

What political actions does the speaker suggest to combat economic consolidation?

The speaker suggests actions like reforming the Farm Bill to support local farms, implementing anti-sprawl legislation, reinstating banking regulations from the 1930s to the 1990s, closing tax loopholes for big corporations, and reviving antitrust enforcement.