Impact of Airline's Monopoly on American Economy (Essay Sample)

Impact of Airline's Monopoly on American Economy Name Institution Impact of Airline's Monopoly on American Economy Monopoly always affects an economy to slower its growth in one way or other and it has been experienced in USA during the past decade. Previous decade observed a lot of mergers and acquisitions all over the world and particularly in USA. This article also discusses the monopoly of American airline as it acquired the US Airways and becomes the largest airline company (Fox, 2013). Due to this acquisition, it became the monopolistic figure of the airline industry and it has increased the fares to maximum. Due to lack of prominent competitor, it has been used by many of the Americans. This affected the growth of the American economy as well. First of all, company is earning a lot of revenues due to monopoly, so it can spend a lot in the market, hence, demand will be reduced in direct manners. This is also affecting the employees as well because company is aware that the employees are left with no other option, hence, they will not leave the company. Therefore, growth in salaries is reduced which also affects the employees well being. Moreover, due to larger revenues, company is also investing in the technologies and labor is hired to low income countries. In this way, the domestic unemployment rate is also disturbed. It is found th...