Business and Finance News - 11.27.24

Author

Skool Projekt Staff
November 27, 2024

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Good Morning, Students!

 

I’ve been reading a lot about Google being broken up lately, and it’s interesting how much the issue ties into economics. At its core, the debate is about market power and competition. Monopolies can stifle innovation and let dominant companies set terms that hurt suppliers and competitors. Critics say Google’s dominance in areas like search and digital ads blocks smaller players and reduces economic enthusiasm. Antitrust laws were designed to preserve competitive markets, ensuring that no company could distort the natural ebb and flow of innovation and competition, which are vital for a healthy economic ecosystem.

 

Still, breaking up Google isn’t a simple fix (nor necessarily the right one). If divisions like YouTube, Chrome, or its ad platforms were sold off, they’d likely go to other big tech companies, consolidating power elsewhere. This could create new problems while disrupting services consumers and businesses rely on. Google’s size also allows it to offer free or low-cost tools that benefit small businesses and users. Breaking it up might inadvertently raise costs, not just for consumers but also for smaller companies that depend on its tools to compete. Any antitrust action must consider these ripple effects, balancing the goal of curbing monopolistic power with the economic realities of scale, integration, and market interdependence.

 

-Mr. Projekts

 

Question of the day: How do monopolies influence supply and demand?

 

Monopolies influence supply and demand by controlling the availability of goods or services in a market, often deliberately limiting supply to maintain higher prices. With no significant competition, they have the power to set prices well above what a competitive market would typically determine, reducing consumer choice and affordability. This creates an imbalance in the market, where supply is artificially restricted, and demand may remain unmet or suppressed due to high costs.

 

Are all monopolies bad?

 

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TOP STORIES

 

Key Insight → This highlights the urgency in finalizing long-term climate initiatives, such as EV manufacturing, before potential policy reversals under a new administration. Rivian's factory project symbolizes a critical pivot for the EV industry, with federal support playing a decisive role in sustaining innovation and job creation amidst economic and political uncertainty. The stakes are high for the transition to renewable technologies, showcasing the broader clash between climate policy priorities and the challenges of fostering industrial transformation in a polarized political landscape.

 

Key Insight → This signals a potential escalation in trade tensions that could disrupt economic stability and global markets. Tariffs on Canada, Mexico, and China threaten to increase costs for U.S. consumers, exacerbate inflation, and strain diplomatic relations with key trading partners. By tying tariffs to issues like migration and drug flows, Trump's policy links economic tools to complex geopolitical challenges, setting the stage for significant shifts in U.S. trade and foreign policy.

 

Key Insight → This reflects a sharp slowdown in the U.S. housing market, driven by rising mortgage rates and economic disruptions, such as hurricanes. The steep decline in new home sales highlights growing affordability challenges for buyers and the broader economic impacts of tighter monetary policy. With inventory levels at their highest since 2008 and increasing uncertainty around interest rates, the housing sector may face prolonged challenges, influencing consumer spending and economic growth.

 

THE MARKETS

Here’s how the major indexes did yesterday:

Here’s how The Magnificent Seven did yesterday:

Here’s how Bitcoin and Ethereum did yesterday:

Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices. 

 

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