Welcome to You’re Probably Getting Screwed, a weekly newsletter and video series from J.D. Scholten and Justin Stofferahn about the Second Gilded Age and the ways economic concentration is putting politics and profits over working people.
Welcome to You’re Probably Getting Screwed, a weekly newsletter and video series from J.D. Scholten and Justin Stofferahn about the Second Gilded Age and the ways economic concentration is putting politics and profits over working people. This past week was another example of elites having a different system than the rest of us, and no I am not talking about the Epstein Files.  In two different lawsuits (one decided last year and one decided this year), a US federal judge has declared Google illegally monopolized parts of its search engine and online advertising businesses. If a company is liable for being an illegal monopoly, like Google was, there are 4 things a court must do: 1 - impose a remedy so that the monopoly will not reoccur 2 - confiscate the benefits of the illegal monopoly 3 - terminate the monopoly 4 - impose deterrents, so it doesn’t occur again The Judge received remedies from each side, the Department of Justice and from Google. The DOJ asked for the sell off of Chrome, the sell off of Android, that Google can’t pay other companies to make Google search the default (which Google pays about $20 billion a year to Apple to do just that) and for search data to help level the playing field (with the goal that it will benefit consumers). Is that what happened? Is the law going to come down on this illegal monopoly? No… According to The American Prospect: The remedy Mehta declared is meager. Google cannot make exclusive deals with distributors, or tie use of or revenue from its products to placement of other products. And it will have to share some search index, user-interaction data, and some search text data with competitors, allowing them to improve their search and compete. But all other remedies, designed to end the illegal monopoly, penalize Google by taking away the profits it made from the scheme, and ensure this won’t happen again, were shot down. Our friend Nidhi Hegde said “You don’t find someone guilty of robbing a bank and then sentence him to writing a thank you note for the loot. Similarly, you don’t find Google liable for monopolization and then write a remedy that lets it protect its monopoly…” Just another day in America where we are probably getting screwed… YOU’RE PROBABLY (ALSO) GETTING SCREWED BY:America’s Labor Force A stark reminder of how much working people are getting stiffed.
DIR Fees The Lever (will need a free account) has a deep dive into how PBMs bankrupted one of the country’s largest pharmacy chains, Rite Aid. The piece digs into so-called DIR fees, which are retroactive fees PBMs used to charge on prescription drug claims under Medicare (regulators finally banned the use of retroactive fees in 2024). According to the story between “2010 and 2020, DIR fees grew by more than 107,400 percent.” The story is a reminder that even large pharmacy chains are being hollowed out by PBMs. Private Equity Speaking of pharmacy chains, private equity firm Sycamore Partners completed its takeover of Walgreens last week. Given the devastation of local pharmacies around the country, a PE firm gutting Walgreens would create even more pharmacy desserts around the country. The Private Equity Stakeholder Project has a great look at the potential harms from this deal and has an overview of Sycamore’s track record.
Artificial Intelligence Just another way tech bros AI utopia is screwing the rest of us.
Did we mention AI? A new Medicare pilot program will use AI to make prior authorization decisions, basically adopting the practices of for-profit insurers that spend a lot of energy figuring out how to deny you coverage. The New York Times reported the program will rely on AI systems similar to those used by various insurers that have been subject to litigation for denying claims and cutting patients off from care in rehabilitation facilities. The program will also be structured to incentivize the denial of claims. Who else, AI! More Perfect Union takes a look at how Tech Bros insatiable drive to create AI utopia is driving up your electricity bill.  Billionaire Tax Cuts Another week, another analysis of the ways in which Congress has recently doled out big time tax breaks for millionaires and billionaires. The top 10% get an average of $13,620 back while the bottom 10% LOSE $1,210.
Private Equity The days of independent doctors are nearly over. Today corporate entities such as UnitedHeath Group or private equity firms employ over 80% of doctors. Olivia Kosloff of the American Economic Liberties Project digs into what this means for our healthcare system.
SOME GOOD NEWSLina Khan on the Trump Administration’s Pro-Monopoly Policies Former Federal Trade Commission Chair Lina Khan recently sat down for an interview with conservative writer Sohrab Ahmari. In the interview Khan talks about the shortcomings of the Biden Administration, the Abundance v Antimonopoly debate within the Democrat party, and the ways corporate America uses prevailing cultural attitudes to deflect from its illegal and anticompetitive behavior regardless of whether that prevailing attitude is left or right.  BEFORE YOU GOBefore you go, I need two things from you: 1) if you like something, please share it on social media or the next time you have coffee with a friend. 2) Ideas, if you have any ideas for future newsletter content please comment below. Thank you. Standing Tall for All, J.D. Scholten
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