Last week, President Joe Biden signed a sweeping executive order to boost competitiveness in a variety of industries. In total, 72 initiatives will take place across several departments. Some of the most notable measures will target big tech, promote lower pricing, and more strict enforcement of mergers. It also establishes a White House Competition Council that monitors the progress made on these issues.
Before signing the order, Biden said, "The heart of American capitalism is a simple idea: open and fair competition. Capitalism without competition isn't capitalism. It's exploitation. Without healthy competition big players can change and charge whatever they want, and treat you however they want - and for too many Americans that means accepting a bad deal for things you can't go without."
Here are some of the most notable parts of the executive order:
Labor Markets
Biden wants the Federal Trade Commission (FTC) to ban or limit non-compete agreements that limit the ability of workers to leave jobs or bargain for better wages or benefits. This practice is highly prevalent in Silicon Valley and has been criticized on both sides of the aisle.
The executive order also seeks to ban "unnecessary" job licensing requirements that "impede economic mobility". This includes strengthening antitrust guidance to keep employers from colluding on wages or benefits.
Technology
The executive order also looks to increase the data security of information shared on tech platforms and promote more competition within the industry. This is due to in recent years many tech companies buying out any nascent competition. The order calls for greater scrutiny of tech mergers, new rules to limit data collection, and calls for increased competition on Internet marketplaces.
Healthcare
The executive order aims to lower the cost of drugs by working with states and agencies to import drugs from Canada and increase the use of generic drugs. It also calls for the Department of Health and Human Services to come up with a plan to lower drug prices and prevent price gouging. It also is pushing for hearing aids to be sold over the counter. Another component is to standardize plan options in healthcare markets to make comparison shopping easier.
Conclusion
Overall, the executive orders touch a lot of other parts of the economy including transportation, agriculture, consumer finance, banking, and Internet service. These all follow the same vein of common-sense reforms that should benefit customers and make markets work better.