Lesson Plan For The Future
Promoting Competition in the American Economy – National Economic Council
What role will the Federal Government have in the real estate industry over the next 4 years?
According to this podcast, PLENTY.
Bloomberg Opinion columnist Barry Ritholtz speaks with Brian Deese, director of the National Economic Council under President Joe Biden, about the administration’s plans to challenge anti-competitive forces across the economy, and that includes the real estate industry.
“What is currently possible in your business, which if impossible, would FUNDAMENTALLY change the way you do business?”
Currently Possible Examples:
Dual Agency, NAR Three Way Agreement, Broker Compensation Clause in MLS, Broker Dues Formula…
What if they were impossible, found to be violations of antitrust laws?
On July 8, the DOJ retreated from negotiation with NAR on the DOJ’s current antitrust case, which is ongoing.
July 9 Executive Order:
Notes from the POD Cast, on the Executive Order:
• National Economic Council is an internal (White House) think tank – national economic advisors
• Focus — lower prices, higher wages, more innovation, and competition
• Some of the occupational licensing regulations are designed to protect incumbents (one salon to braid hair, one to cut hair); making moving from states makes it harder for new entrants to compete
• Minute 36 covers the NAR Settlement withdrawal
• Excessive real estate commissions – from lack of competition? or a result of a competitive outcome?
• Need more transparency and competition
• Commercial landlord or condo owners sell exclusive rights to a building to a cable company (satellite, fiber) – broadband services
• “high speed internet today is like electricity was 100 years ago” – if you don’t have access you can’t participate in today’s economy; it’s the power in which you interact with the 21s Century
• Pay to delay generic drugs; keeps prescription drug cost high; give Medicare the ability to negotiate drug costs
• Big tech platform dominance/concentration
• How companies collect and market data on their platforms-
• Focus on acquisition of competitors, mergers
• Robust data privacy laws
• Net neutrality rules necessary but needs new direction
• Goal: Improving economic outcomes for people
If you have not read the July 9, 2021 Executive Order, It gives insights into the direction of government control under the Biden administration.