Organized Money

Spurred on by Trump, Covid, and climate change, leaders are taking a more hands-on approach to shaping markets that would be seen as impossible a few years ago—but as our guest today argues, this kind of marketcraft is actually a long American tradition. Today, Matt and David welcome Chris Hughes, one of Facebook's founders, to the show to talk about his new book Marketcrafters. The book demolishes the myth that government and the free market were ever truly separate entities and examines the oft-forgotten stories of how policymakers on both sides of the aisle have used their power to craft markets to both good and bad ends.This week also marks the beginning of the FTC's trial against Meta, an action Chris called for back in 2019 in The New York Times. We get Chris's take on the trial, plus a dispatch from Matt, who has been watching the proceedings go down at the courthouse. To learn about Chris's new book Marketcrafters, check out his Substack: https://chrishughes749530.substack.comRead Chris's 2019 op-ed calling for Facebook to be broken up: https://www.nytimes.com/2019/05/09/opinion/sunday/chris-hughes-facebook-zuckerberg.html

Jonathan Kanter, the former head of the DOJ's antitrust division and current CNBC contributor, shares his thrilling experiences battling major corporations like Google and Ticketmaster. He reveals the courtroom drama and hilarious moments he faced while leading a small team against powerful monopolies. Kanter discusses Apple’s monopolistic practices and the challenges of fostering innovation in a competitive market. His insights on evolving antitrust strategies emphasize the ongoing fight against corporate power, shedding light on the complexities of promoting fair competition.

Jonathan Kanter, former head of the Antitrust Division and big law partner, delves into the intricate ties between major law firms and politics. He discusses how recent executive orders from the Trump administration have created a chilling effect on legal representation, especially against government actions. The conversation shifts to the ways big law has evolved from academia to a profit-driven focus, impacting their dual roles as legal advisers and political players. Kanter also highlights the ethical dilemmas faced by firms in maintaining integrity amid profit pressures.

In this discussion, Randy Arceneaux, CEO of Affiliated Foods, and Chris Jones, Chief Government Relations Officer at the National Grocers Association, reveal how giants like Walmart use their size to unfairly dominate the grocery market. They delve into the complexities of price discrimination under the Robinson-Patman Act and share insights on the struggles of independent grocers against monopolistic practices. The conversation highlights supply chain challenges post-pandemic, including shortages affecting smaller stores, and underscores the importance of fair pricing and competition in the industry.

Alvaro Bedoya, an FTC commissioner known for championing consumer rights, shares his experience with an attempted firing by President Trump. He discusses the legal precedents protecting FTC commissioners and the broader implications for presidential power. The conversation explores the agency's role in regulating corporate influence, especially concerning insulin pricing and antitrust enforcement. Bedoya emphasizes the importance of dissent within regulatory bodies to maintain accountability, highlighting challenges that small businesses face in an increasingly monopolistic market.

Cory Doctorow, a renowned author and activist known for his advocacy against monopolies, discusses the alarming trend of 'enshitification' in Big Tech. He unpacks how the initial utopian dreams of Silicon Valley transformed into profit-driven power grabs by giants like Amazon and Google. The conversation delves into the erosion of internet culture, the shift in Google's priorities from user experience to maximizing ad revenue, and the effects of monopolization on creativity in publishing. Doctorow highlights the urgent need for interoperability and competition in tech.

Rich Ham, CEO of FineTune and procurement expert, joins the discussion to unpack the labyrinth of corporate efficiency and waste. He reveals how companies often squander money through poor purchasing practices, questioning whether drastic budget cuts, like those employed by Elon Musk, genuinely foster savings or lead to costly setbacks. The conversation draws parallels to 'Office Space', shedding light on the struggles faced by procurement teams and the tactics suppliers use to exploit inefficiencies, ultimately emphasizing the need for better strategic decision-making.

What does it look like when government actually works for the people? Matt and David explore this question with Lina Khan, whose groundbreaking tenure as FTC Chair rewrote the playbook for federal agencies. Khan details how she transformed an understaffed agency into the spearhead of a governance revolution - confronting corporate giants, championing consumer rights, and proving that government can be a powerful force for positive change. Their conversation offers a window into a transformative moment in American governance, where old assumptions about corporate power are being challenged and new possibilities are emerging.

When it comes to utilities - why are we paying so much for service that can be so unreliable? In this episode, Matt and David expose how a small group of economists and some untrustworthy models have allowed utility companies to inflate rates and spend on dubious projects. Former utility executive Mark Ellis helps explain the "scam" that has misled regulators and advocates, leading to excessive profits for investor-owned utilities at our expense. They break down utility regulation, how rates are set, and the surprising difference in rate increases between investor-owned and public utilities. Prepare to demand some serious reform!Read Mark's report: Rate of Return Equals Cost of Capital: A Simple, Fair Formula to Stop Investor-Owned Utilities from Overcharging the Public

Doha Mekki, the former head of the DOJ Antitrust Division, shares her insights from landmark cases, including the Google search case. She likens antitrust enforcement to 'policing for white collar crime,' all while operating on a budget dwarfed by tech giants. Mekki delves into the complexities of investigating monopolies, emphasizing the role of citizen tips and expert testimony. She discusses the generational shift in attitudes toward antitrust, highlighting a newfound willingness among younger conservatives to support government intervention in the market.