The “Biggest Puzzle in Economics”: Why the “Superstar Economy” Lacks Any Actual Superstars

A new study finds that the contribution of superstar firms to US productivity growth has decreased by more than 40 percent over the past 20 years.     We live in an age of superstar firms. While the United States and other Western economies become increasingly concentrated, an ever-decreasing number of large firms now accounts for a growing share of economic activity. This, in turn, translates into massive profits for the Googles, the Facebooks, and the Amazons of the world: A 2018 McKinsey report found that 65 percent of global corporate earnings now go to firms with annual revenues above … Continue reading The “Biggest Puzzle in Economics”: Why the “Superstar Economy” Lacks Any Actual Superstars