COMMENTARY: Mergers foster innovation that brings down prices

The Washington policymakers responsible for bad decisions causing the inflation that drove prices so high have left town. Those who took their place must find ways to reduce the gap between what we all earn and what we pay for the things we want and need.

At least they do if they want to keep their jobs after the next election.

There’s some good news. Core inflation is now lower than expected. But relabeling the results of “Bidenflation” as an “affordability crisis” is a dodge. The higher prices we have now are the fault of the last administration’s mismanagement, not anything that Donald Trump has done since resuming the presidency.

To put it another way, we have an extended hangover from years of easy money and diminished economic activity. We need a cure that will raise wages and spur growth rather than regulate prices, which some people want to do without understanding that it is a remedy that might just kill the patient.

There are lots of good ideas out there. One of them is for agencies that oversee mergers, such as the Federal Trade Commission and the U.S. Department of Justice, to ensure they grant prompt approval to the corporate mergers they are required by statute to approve. They are a simple way to drive innovation, especially in the consumer products sector. When businesses join forces, they become empowered to pursue bold new directions, develop better products, improve efficiency and create more resilient supply chains.

These are the issues the government should be concerned about, not whether being larger in itself is problematic. Mergers eliminate redundancies, combine capital and intellectual resources and produce other efficiencies that lower production and distribution costs. The savings from streamlining can be passed on to consumers through lower prices.

Unfortunately, there are those on both the left and right who oppose them reflexively. Some feel that bigger is badder, in a sui generis way. Others argue they should be approved only after the state extracts rents and other concessions from corporate leaders, thereby forcing policy and behavioral changes that cannot be achieved by law.

To put it simply, the whole business is a mess, made worse under both Joe Biden and Trump. The straightforward logic is being obscured by a politically induced haze that’s keeping the economy from growing as it needs to.

Kimberly-Clark’s proposed $48.7 billion acquisition of Kenvue would create a consumer-products powerhouse competitive anywhere in the world where its products are sold. That’s good for everyone.

The combined company would produce over-the-counter medicines, tissues, paper towels, diapers, lotion and mouthwash that help keep families healthy, homes tidy and children neat and clean. Its output would be goods central to daily life, with innovation occurring at a remarkable rate because even minor improvements in quality, performance, or sustainability make a significant difference.

That’s only part of it. The lockdowns made it clear essentials such as these must be available when needed. That means supply chains must be strengthened, and the proposed merger would do so. The Kimberly-Clark and Kenvue combination would double down on American manufacturing, strengthening the supply chain by combining their production capabilities and distribution networks.

That’s an improvement, on the cheap. The new company would be able to produce and transport goods across the United States efficiently. Greater reliability, faster delivery and a stronger foundation for innovation are what matter because they drive economic resilience and protect consumer welfare.

The merger would enhance global competitiveness. Across industries, China and Europe are cultivating corporate champions to dominate international markets. American companies must be able to match them, in scale and sophistication if they are to continue to lead. By joining forces, Kimberly-Clark and Kenvue create a stronger American competitor capable of investing more deeply in research, operations, and its workforce.

That means more domestic production, more skilled manufacturing jobs and more capacity to export American excellence abroad.

This merger is good business, based on sound policy. It reinforces the pillars that sustain American economic strength: innovation, reliability and competitiveness. Policymakers should accept that responsible mergers such as this one empower competition, not retard it. They give U.S. companies the scale and stability needed to innovate, better serve consumers, and remain competitive in an increasingly complex global market.

The Kimberly-Clark acquisition of Kenvue is a forward-looking partnership that promises benefits for consumers and workers. By merging not only assets but ideas, these two iconic companies are charting a course toward a more resilient and innovative American future.

Peter Roff is former U.S. News and World Report contributing editor and UPI senior political writer. Contact at RoffColumns@gmail.com and follow him on X @TheRoffDraft.