4.4 • 823 Ratings
🗓️ 24 August 2021
⏱️ 23 minutes
🧾️ Download transcript
Alison explains hipster antitrust and wonders how we should feel as investors and consumers, Bro shares the five rules for the Roth five-year rules, listener David asks how to choose what to sell under the 4% Rule.
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0:00.0 | This is Motley Fool Answers. I'm Alison Southwick, joined as always by Robert Brokamp, |
0:07.5 | personal finance expert here at the Motley Fool. Hey, bro. Hello, Alison. |
0:11.5 | Well, welcome back. Yes, that's right. We took a bit of an extended summer break. |
0:16.8 | And as we like to do every now and then, we're changing up the format of scosh. But don't worry, |
0:21.4 | it's not that drastic, a new rug, maybe some throw pillows. All that and more on this week's |
0:26.3 | episode of Molly Full Answers. So the other day, I was driving in my car, listening to NPR, |
0:33.0 | like the mid-Atlantic Coast metropolitan area residing person that I am, when I heard the phrase, |
0:38.9 | hipster antitrust. At first, I was like, is hipster a thing we're saying again? The answer is not really. |
0:45.1 | And then I wondered, what is this antitrust business about? Well, way back in 2017, a woman named |
0:52.4 | Lena Khan wrote a now famous piece for the Yale Law Journal, |
0:56.1 | arguing that the rise of massive tech companies like Amazon, Google, Apple, etc., proved that |
1:02.3 | modern American antitrust laws were flawed and how we decide if a company has an unfair monopoly |
1:08.4 | is outdated and ineffective. |
1:14.0 | So to oversimplify the status quo that she was railing against, |
1:20.0 | one of the joys of a free market is that you have many companies competing to sell the same product. |
1:25.3 | And they keep each other in check by trying to offer the better price or the best service or some other value proposition to customers. |
1:28.8 | If one company has a monopoly, then they can charge whatever exorbitant price they want because the customers |
1:34.6 | have nowhere else to go for the same product or service. And this is bad. Judge Pro, did I explain |
1:39.7 | that correctly enough? Well, of course, Alison, because you always get everything right. But as you point out, |
1:45.1 | one of the main reasons that a monopoly can be bad is because they have all the pricing power. |
1:50.3 | Thus, as long as prices don't go up, there are really no problems, at least to some people. However, |
1:55.5 | I think what's happening now is there is this evolving idea of what constitutes sort of the ill |
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