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September 2, 2022

The Profit Paradox Paper

Columbia University The Profit Paradox Paper

The reading used for this assignment is Jan Eeckhout, THE PROFIT PARDOX: HOW THRIVING FIRMS THREATEN THE FUTURE OF WORK

1. Why is wage stagnation not equally distributed?

2. Please identify the strategies successful multinational firms used to increase their market power.

3. Explain the role of globalization in outsourcing and technological change in increasing the inequality of compensation among the employees of the firms and increasing inequality between firms, and explain why countries are looking increasingly alike when it comes to inequality.

4. “Not only is inequality higher, and wages and labor mobility lower; market power affects people’s health and it distorts the stock market and the success of small business startups. It drives a schism through society that can only be remedied by restoring policies.” Please explain why?

5. Explain how horizontal and vertical acquisitions develop market power with recent examples from Silicon Valley.

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