How Markets and Governments Fix Monopolies

Miacademy & MiaPrep Learning Channel

This video explores the complex economic problem of non-competitive markets—specifically monopolies and oligopolies—and the various solutions available to restore competition and protect consumer welfare. Using the airline industry as a primary case study, the narrator breaks down the negative impacts of limited competition, such as higher prices and poor customer service. The video contrasts two main approaches to solving these issues: private market solutions, like new competitors entering the market or public pressure from journalists and watchdog groups, and government interventions. The content dives deep into the specific tools the government uses to regulate markets when private solutions fail. It covers key concepts including subsidies to lower barriers to entry, regulations to enforce service standards, antitrust laws (referencing the Sherman and Clayton Acts) to block mergers or break up monopolies, and the rare measure of nationalization. Historical examples, such as Ida Tarbell's exposé on Standard Oil and Woodrow Wilson's nationalization of railroads during WWI, provide context for how these measures have been applied in the United States. For educators, this resource serves as an excellent bridge between economic theory and civics. It clearly articulates the tension between free-market principles and the necessity of government oversight to ensure fair play. The video includes built-in pause points with discussion questions, making it ready-to-use for checking student understanding. It effectively demonstrates how abstract economic policies directly impact daily life, from the price of medication to electricity bills and flight cancellations.