Obama: Competition is economy’s ‘most essential ingredient’

President Obama on Saturday said that competition keeps the wheels of capitalism and economic prosperity turning, following up on his call for opening up the cable set-top box market. 

“One of America’s greatest strengths is our free market,” he said in his weekly address. “A thriving private sector is the lifeblood of our economy — it’s how we create jobs, expand opportunities and give everybody a shot at success.”

“The bottom line is, competition is good for consumers, workers, businesses and our economy,” Obama added. “So I’m going to do everything I can to make sure that our free market works for everyone.” 

{mosads}Obama said that scores of businesses were actively undermining their competition, however, stunting innovation and economic growth.

“Right now, too many companies are engaging in behaviors that stifle competition — like blocking new competitors from entering the market or limiting the information and options that give consumers real choice,” he said.  

“As a consequence, the rest of us pay higher prices for lower quality products and services,” he added. “Workers receive lower wages than they otherwise normally would. Small businesses and entrepreneurs can get squeezed out of the market.

“None of that is fair — or good for the economy. The deck should not be stacked in favor of the wealthiest individuals and the biggest corporations against working Americans.”

Obama said cable television is one market that needs more competition to better benefit consumers.

“One industry that’s ripe for change is cable TV,” he said. “Right now, 99 percent of cable and satellite TV customers rent set-top boxes from their providers.

“According to one survey, this costs households an average of more than $230 per year. We spend some $20 billion to rent these devices. That makes no sense.”

Obama on Friday backed Federal Communications Commission Chairman Tom Wheeler’s plan for opening up the market for set-top television boxes.

The draft rules would require companies like Comcast to make their video feeds and other information available to third-party companies that want to market boxes customers could use for accessing content.