Burt'' s Bees? It ' s– it ' s not run. It'' s not terrific when. American'' s lead and it was basically. Because it'' s substantial, it'' s glitchy, and it ' s might be one.
https://www.youtube.com/embed/00wQYmvfhn4 I wish to talk with you
about organisation. The important things that everyone
on Shark Tank thinks they have
a great idea for, even this guy. Our cakes …
are made of foam, and they'' re leasings. -Wait!
-( AUDIENCE LAUGHING) So, I can neither have my cake,
nor consume it too? I am in,
here is a million dollars. (AUDIENCE LAUGHING) Small start-up businesses
like that hold an unique location
in America'' s heart and politicians from throughout
the political spectrum love to talk
about how important they are. Small company is the backbone
of the American economy. Little businesses
are the foundation of this country'' s economy. BOTH: Small businesses are
the backbone of our economy. BOTH: Small companies are
the foundation– ALL: Small organisations are
the foundation of our economy. ALL: Small businesses are
the backbone of our economy. ALL: Small businesses are
the foundation of our economy. -( AUDIENCE APPLAUDING).
– It'' s true. “Small organisations are.
the backbone of our economy”” is that unusual thing that.
every political leader settles on. It'' s that,. support the soldiers,- Ted Cruz can go fuck himself …-( AUDIENCE LAUGHING) … and South Dakota senator.
John Thune can get it, -he can get it!
-( AUDIENCE LAUGHING) Now, appearance, it can feel like.
We'' re in a golden age of little service start-ups.
that isn'' t really the case.The rate at which brand-new businesses.
are been produced has in fact being.
gradually falling considering that the 1970s.
And I would argue that a person of the factors for that,.
is that industries, have actually been getting even larger, which brings us.
to our main subject tonight, “” Corporate Consolidation.”” Recent years, have actually seen record highs.
for mergers and acquisitions. As you would understand,.
if you'' ve ever saw the delighted reactions they get.
on business news. M&A has actually been hot,.
continues to be hot. An interesting year for M&A. A few smash hit offers.
being revealed. They call it “” Merger Monday,””.
They don'' t call it.
-At last we have one, I state …
– ♪ Hallelujah ♪ Okay, that was obviously.
a little nauseating, but likewise, pressing a button on TV.
Because someone might take, is a little bit harmful.
that footage and after that loop any sound.
that they want under there. Now, certainly I'' m not immature.
enough to do that however if I were.
it would look like this.”” Merger Monday””? At last we have one,.
and I state … (FART NOISE) -( AUDIENCE APPLAUDING, CHEERING).
-( BLOWS) The point is– This point is, all this.
merger activity has all made some sectors.
of our economy ridiculously combined. NEWSCASTER: The United States.
has gone from having 10 big airlines back in 2000.
to just four today. And those 4 mega airlines.
now dominate more than 80 percent.
of the U.S. market. Yeah, we down to just four.
major airline company options, and no that does not consist of.
Since that is not in fact an airline, jetblue. It'' s just an extremely expensive way. to consume those odd blue chips … -( AUDIENCE LAUGHING).
– … which are, and this is true -simply sliced Grover arms.
-( AUDIENCE LAUGHING) Look, and airlines here are.
just the beginning. The rental cars and truck organisation is now 90 percent dominated.
by simply 3 business. The U.S. beer industry.
is 70 percent managed.
by simply 2 companies, and online search engines are.
obviously as we all understand controlled by one significant player.
That'' s right say it with me,- Bing. -( AUDIENCE LAUGHING)'That ' s right.
Bing, the very best method. to Google something. Look,. complete disclosure here.Even our own parent company,.
Time Warner is currently trying to merge.
with AT&T, that makes this story.
a little harmful for us to do. You understand,.
that is presuming that AT&T executives manage.
to arrive shitty service working long enough to see it. -( AUDIENCE CHEERING).
– AT&T, it'' s the
top. telecom business around alphabetically and absolutely nothing else. -( AUDIENCE APPLAUDING).
– Look, even some brands, that you might think.
of as indie now have multinational owners.
Burt'' s Bees? It ' s– it ' s not run. by a backwards bee fucker -called Burt.
-( AUDIENCE LAUGHING) It'' s run by Clorox. Tom'' s of Maine,.
the deodorant which did so little to deodorize.
( AUDIENCE LAUGHING) That'' s not owned. Now, their ads feature.
beardy brewers rubbing -gets on their faces.
-( AUDIENCE LAUGHING) But what they don'' t reference is that Goose Island.
is owned by Anheuser-Busch, which farm that you simply saw is situated at.
822 Budweiser Loop. It'' s most likely just passed.
Bud Light lime-a-rita boulevard. Basically, if you see the mass.
grave of Clydesdale horses, turn left and you'' re there.-( AUDIENCE LAUGHING).- And it states something about the quick rate of mergers.
that even Jim Cramer, occasionally.
discovers himself in disbelief at one taking place. See him react to a mega merger.
in the aluminum can market. Ball Corp'' s acquisition of Rexam is taking the number.
of competitors in this area down to,.
get this, -from 3 to 2.
-( AUDIENCE LAUGHING) How did they let that take place? -( AUDIENCE LAUGHING).
– Yeah. It'' s not fantastic when. a business casual Louis C.K.With a sound effects board is saying, “” Holy shit.
this was a truly bad concept.”” -( AUDIENCE LAUGHING).
– But, however.
“” how did they let that take place?”” Is really.
a really good concern. And the response is intriguing,.
due to the fact that we'' ve had anti-trust laws on the books.
And I'' m not saying that. Often organisations.
getting bigger can result in greater efficiencies.
and enhancements. The tension is in between.
permitting that and avoiding them.
from doing real harm. It'' s a– it ' s a balance.
Since the late 1970s,. that balance has actually tipped extremely in favor.
of being merger friendly, which has actually led.
to real issues. And let'' s start. with the apparent, for employees, mergers can.
often suggest huge layoffs, but it'' s not simply staff members.
that can suffer, consumers can too,.
as Jim Cramer described, because aluminum can sector in an inexplicably.
sarcastic tone of voice. I always state competitors,.
while excellent for you, a consumer, is it enough amount of revenues. Sometimes a company would be.
a total monopoly with no competition whatsoever,.
and while that'' s the perfect, it ' s really uncommon to see. a genuine monopoly,-
since of course,.
it ' s against the law.-( AUDIENCE LAUGHING )Which brings us to the next. best thing, an oligopoly, where a handful of business. manage an entire industry, co-existing peacefully without much in the method.
of cost competition.-That'' s an unusual tone to utilize …-( AUDIENCE LAUGHING )… to explain something.
that'' s plainly awful.'It ' s unusual to see authentic.
bestiality due to the fact that of course.
it'' s against the law. Which brings us to the next.
best thing, making love.
with the stuffed animal while taking a look at pictures.
of a real horse. (AUDIENCE LAUGHING) And– And for sense of what.
When a handful of business, it can look like.
co-exist peacefully without much in the method.
of cost competitors, just look at airlines. In 2012, one airline executive.
informed a market conference, Consolidation has permitted us.
to do things like supplementary revenues,.
which is lingo for all those costs.
that drive you fucking crazy! Now, American was the very first.
significant airline company to charge you for your.
Examined bag back in 2008, and back then individuals.
could not think it. NEWSCASTER: American Airlines.
will soon charge $15 for the first inspected bag. That on top of a cost.
of $25 -for your 2nd one.
– Fifteen dollars? Holy cow. I'' ll have to put. my underwear in my pocket.( AUDIENCE LAUGHING) Yes! That is clearly.
a delightful man. Although, it does makes you.
question whether he fills his bags loaded with underwear.
and nothing else.-( AUDIENCE LAUGHING).
– But– But within months, many significant airline companies had followed.
American'' s lead and it was basically. And it is simple.
added and increased bag charges several times,.
frequently relocating tandem, which is how those charges have.
gone creating around 540 million dollars a year.
a decade earlier, to 4.2 billion dollars now. And that is frustrating.
If I wanted exorbitant fees that keep getting raised all.
the time in spite of shitty service, I'' d become a client of AT&T. -( AUDIENCE LAUGHING).
– Yeah. -Fuck you AT&T!
-( AUDIENCE LAUGHING) Even if you take control of.
you'' ll never be my real father! (AUDIENCE LAUGHING) And, look, you– you may.
well be angry with the service you get.
from thanks however airline companies to combination, they put on'' t actually require. to offer a shit about what you believe. And if you wear ' t believe me? Keep in mind that horrible video that. walked around previously this year.NEWSCASTER: The stunning images.
of a passenger captured in a travel headache. A guy visibly shaken.
as he'' s pulled and after that dragged of a United jet.
by police. All after declining.
to quit his seat. Yeah,.
that'' s the most scary thing you can possibly see.
on an aircraft, unless your in-flight movie.
is The Boss Baby. A film that combines.
the excruciating smugness of Alec Baldwin.
with an excruciating smugness -of an infant.
-( AUDIENCE LAUGHING) Now, in the wake.
of that incident, people said.
it was a PR nightmare and there was talk on Twitter.
of boycotting United. The problem is on certain routes.
they'' re the only option. So, a boycott is gon na be.
quite hard to pull-off, which is arguably why.
their CEO was later on able to open his.
profits require that quarter, by explaining a period in which,.
I will advise you, a passenger had his teeth.
knocked out on one of United'' s aircrafts,.
like this.OSCAR MUNOZ: Welcome to.
a fantastic 2nd quarter,.
strong monetary results and even uh,.
more amazing functional outcomes. And as you.
consider our customers, I wish to thanks them for their.
continued loyalty and assistance. We continue to find brand-new.
and better ways to service them and make the more comfortable.
on our airline company. -( AUDIENCE LAUGHING).
– And you understand what? Is it truly any wonder that.
their incomes remained strong. United, is in some cases.
the only method to get to where you are going. Which really discusses.
their brand-new slogan, “” You wan na fuckin' ' roller blade.
to Houston? Shut up and get in!”” When and market gets, (AUDIENCE LAUGHING) And.
too consolidated, any business trying to complete.
with them or endure in their.
supply chain, can get crushed.Now we all understand about Amazon,.
Walmart or Google, but there are less.
obvious examples of this too. Take eye-wear. If you go, now.
into a Lens Crafters, you'' ll see frames.
by brand names like um, Prada, Dolce & & Gabbana, Burberry.
and Ralph Lauren. All of which it turns out, are made by an Italian company.
called Luxotica, which by the way also owns.
Lens Crafters and Sunglass Hut and Pearle Vision and runs.
Target Optical, and Sears Optical. So, what can.
take place when a smaller business takes on them?
Well, simply ask Oakley.BRETT ARENDS:.
Oakley was a big rival and they had a battle.
with Luxotica and Luxotica essentially stated, we'' re dropping you.
from our stores. -And–.
– They refused -to offer their glasses …
– BRETT: Yeah. -… in their shop?
– It was a dispute about rates, and they dropped Oakley.
from the shops. And Oakley'' s. stock cost collapsed. There were some problems in between.
the 2 companies in the beginning.
of the 2000s, but … Both of them comprehended.
that it was much better to go along. We merged with Oakley in 2007. -You bought Oakley.
– So we'' re talking– They tried to compete.
and they lost and then you purchased them. I understand your theory, however … they understood that life.
was better together. -Whoa!
-( AUDIENCE LAUGHING) That is the enormous tone.
of a Bond villain, They understood that life was better together, Mr. Bond, no? That is the very first time that I'' ve ever regreted.
for Oakley. The main sunglasses.
of men who un-ironically use.
the term “” finger blasting.”” And– I think.
it'' s a sponsorship deal. And– And there is one.
more victim of debt consolidation that you may not think about, and that.
is the products themselves.Because.
greatly combined industries can lose the incentive.
to innovate and the very best example of this.
might be the cable box beneath your TELEVISION.
You most likely dislike it if you have one of those. Since it'' s big, it'' s glitchy, and it ' s may be one. of the largest energy taking in items in your house even when it'' s shut off.
If you think about it, cable business have no genuine.
incentive to improve them. They'' re basically local–. local monopolies. And once again, they know that you essentially.
have no where else to go. And you can'' t even smash your.
cable box out of aggravation, due to the fact that you'' re leasing it.
and they'' ll then charge you numerous dollars.
if you put on'' t provide it back.
Which is why. we went through the difficulty of blowing this one up for you.
Please take a look.There you go. Pretty cathartic to view,.
right? -I hope that helps.
-( AUDIENCE APPLAUDING) Feel totally free to watch it once again.
in sluggish movement. (AUDIENCE APPLAUDING, CHEERING) I desire you to understand.
that box suffered. -( AUDIENCE LAUGHING).
– The point here is, we seem to have actually forgotten,.
how crucial Anti-Trust is. And now are being required.
to deal with the repercussions. Because this concern impacts.
practically whatever you do. Angry at banks? Well, the market'' s controlled. by simply these four.
Frustrated with your. medical insurance service provider? Odds are, it'' s among these. And if this entire story.
is infuriating you so much that you'' re yearning.
for the sweet escape of death? Well misfortune,.
because the casket industry is controlled.
by these three business. Oh, and it gets back at worse. The after life is really.
managed by one religious beliefs. I'' m not stating which one, however when you find out.
you'' re gon na be so mad. (AUDIENCE LAUGHING) -The point– The point is–.
-( AUDIENCE LAUGHING) The point is, we have laws to avoid the worse impacts.
of debt consolidation. And it may well be time.
to more aggressively utilize them to enforce stringent standards.
and to empower the FTC and the DOJ'' s. anti-trust divisions.And that is something that.
many people would actually support, and almost.
every political leader should. After all, there is one thing.
they can not stop stating. ALL: Small services are.
the foundation of our economy. Well, if they.
truly think that, it might be time for them.
to stop speaking about backbones and really fucking grow one. -( AUDIENCE APPLAUDING).
NARRATOR: And now. All of Jim Cramer'' s.
sound buttons replaced changed fart noisesSounds
begin selling, not since they wish to, -however because they have.
to raise cash …
-( FART NOISE) to pay back their.
unhappy customers. (FART NOISE) -Things keep exercising.
-( FART NOISE) Is it any marvel.
that Norfolk Southern -and Union Pacific keep running?
-( FART NOISE) -Buy high and then sell low!
-( FART NOISE) A time-honored way.
to lose cash. -Sell it tomorrow …
-( FART NOISE) … because the entire idea.
of conserving for retirement -puts you to sleep.
-( FART NOISE) -I want you to feel embolden …
-( FART NOISE) -… not.
-( FART NOISE) As we tell you what we would do.
prior to we pull any trigger. (FART NOISE) -I was wrong on both counts.
-( FART NOISE) (FART NOISE) As found on YouTube – Creative Commons License.