2 Dg ecfin, “Ameco database Series acldo,” European Commission on Economic and Financial Affairs.
3 Jacob Hacker and Paul Pierson, Off Center: The Republican Revolution and the Erosion of American Democracy (New Haven: Yale University Press, 2006).
4 William Lazonick, “Evolution of the New Economy Business Model,” Business and Economic History Online 3 (2005).
5 Thomas Klier and James Rubenstein, Who Really Made Your Car?: Restructuring and Geographic Change in the Auto Industry (Kalamazoo, Mich.: W. E. Upjohn Institute, 2008).
6 Henry Kressel, “Edison’s Legacy: Industrial Laboratories and Innovation,” American Affairs 1, no. 4 (Winter 2017), 115–29.
8 Erling Barth, Alex Bryson, James C. Davis, and Richard Freeman, “It’s Where You Work: Increases in Earnings Dispersion Across Establishments and Individuals in the U.S.,” NBER working paper no. w20447 (Chicago: National Bureau of Economic Research, 2014); Jae Song, David Price, Fatih Guvenen, Nicholas Bloom, and Till von Wachter, “Firming Up Inequality,” Quarterly Journal of Economics 134, no. 1 (February 2019): 1–50.
9 All data on profits, employee head count, and capital expenditure are from WRDS Compustat unless otherwise noted. Compustat only has data on listed firms, but analyses by McKinsey suggest similar levels of concentration among privately held firms. Firms held by private equity typically tend to underinvest—the private equity model is built on stripping out profits—so including them would not change the conclusions presented here.
10 Thomas Philippon, The Great Reversal: How America Gave Up on Free Markets (Cambridge: Harvard University Press, 2019); Jan De Loecker and Jan Eeckhout, “The Rise of Market Power and the Macroeconomic Implications,” NBER working paper no. w23687 (Chicago: National Bureau of Economic Research, 2017).
11 David Kostin, “Where to Invest Now: 2019 U.S. Equity Outlook,” Goldman Sachs, 2018.
12 U.S. Patent and Trademark Organization, “Patenting by organization, 2014.”
13 Browning-Ferris Industries, 362 NLRB No. 186 (2015).
14 “Common Good Capitalism: An Interview with Marco Rubio,” American Affairs 4, no. 1 (Spring 2020): 3–14.