Big Companies Are Getting a Chokehold on the Economy

A recent report by Goldman Sachs’ global research team highlights a new study showing that large, dominant superstar companies are paying lower wages and earning higher profits. I’ve flagged that research myself, but when Goldman says it’s worried, you know things have really gotten serious. American industry is increasingly dominated by a shrinking handful of giant companies:

Why is Goldman complaining about the trend? After all, the big bank presumably has many ways to make money off of corporate behemoths. Oligopoly raises profits, which sends stocks higher, contributing to fatter fees for financial companies like Goldman that do things like asset management, brokering and market-making. Goldman also handles mergers and acquisitions, which are a key way that markets become more concentrated.