The Great Reversal: How America Gave Up on Free Markets

The Great Reversal examines how the United States transformed from a beacon of market competition into an economy dominated by concentrated corporate power. Through economic analysis and historical research, Thomas Philippon tracks the divergence between U.S. and European markets over recent decades. The book presents data on prices, wages, and market concentration across industries including airlines, telecommunications, and banking. Philippon demonstrates how American consumers now pay more than Europeans for many basic services, while U.S. workers face stagnant wages despite rising corporate profits. Philippon investigates the regulatory and political factors behind this shift, focusing on lobbying, campaign finance, and the revolving door between government and industry. He compares U.S. and EU approaches to antitrust enforcement and market regulation since the 1980s. The work raises fundamental questions about the relationship between democracy, regulation and market competition in modern capitalism. Through its transatlantic comparison, it challenges conventional wisdom about American economic dynamism versus European stagnation.

Readers appreciate Philippon's data-driven analysis showing how US markets became less competitive than European ones. Many reviews highlight the clear explanations of complex economic concepts and concrete examples of industry concentration. Positive reviews focus on: - Detailed evidence of increasing corporate concentration - Clear graphs and visuals supporting key points - Balanced treatment of both conservative and liberal policies Common criticisms: - Technical writing style can be dry - Some sections repeat similar points - Limited discussion of potential solutions Ratings: Goodreads: 4.1/5 (121 ratings) Amazon: 4.4/5 (89 ratings) Representative review quote: "Philippon makes a compelling case through meticulous data analysis, though the academic tone may put off general readers" - Goodreads reviewer Several readers note this works better as an academic reference than a general audience book, with one Amazon reviewer stating "Important information but dense reading that requires sustained focus."

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🔹 Author Thomas Philippon was named one of the top 25 economists under 45 by the IMF and won the 2013 Bernácer Prize for Best European Economist under 40. 🔹 The book reveals that European consumers now pay less than Americans for cell phone service, internet access, and airline tickets—a dramatic shift from just 20 years ago. 🔹 Research for the book shows that increased market concentration in the U.S. has led to a transfer of wealth from consumers to shareholders estimated at about $1.5 trillion per year. 🔹 Philippon demonstrates that the American free-market system, which was once a model for other developed economies, has actually become less competitive than many European markets since the 2000s. 🔹 While writing this book, the author analyzed decades of data from both sides of the Atlantic, including previously unused data from the 19th century American railroad industry.