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Baby Bills

What is 'Baby Bills'

A hypothetical nickname for the smaller companies that would have been formed if Microsoft had been broken up for violation of antitrust rules in 2000. Baby Bills stood a real chance of having actually been formed since the U.S. government did call for the company's breakup, but the decision was reversed the following year so Microsoft instead was permitted to keep operating as one company.

Explaining 'Baby Bills'

The antitrust suit in question was brought against Microsoft in 1993 after an investigation of possible collusion between Microsoft and IBM hit a dead end. The Justice Department settled with Microsoft in 1994 after documents signed by the company force them to agree not to "squelch" competition by creating operating system dominance. In 1997, the Justice Department filed a complaint that Microsoft had violated the decree by demanding that Internet Explorer be bundled with PCs in order to get a Windows 95 license. After years of trials and appeals, they were finally able to come to an agreement in 2001.


Further Reading


Baby boomer retirement security: The roles of planning, financial literacy, and housing wealth
www.sciencedirect.com [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

Baby boom, population aging, and capital marketsBaby boom, population aging, and capital markets
www.jstor.org [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

Assessing the baby boomers' financial wellness using financial ratios and a subjective measureAssessing the baby boomers' financial wellness using financial ratios and a subjective measure
onlinelibrary.wiley.com [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

Young Mothers' Experiences of Receiving the Baby Bonus: A Qualitative StudyYoung Mothers' Experiences of Receiving the Baby Bonus: A Qualitative Study
www.tandfonline.com [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

Retirement savings adequacy for the baby boom generationRetirement savings adequacy for the baby boom generation
search.proquest.com [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

The potential role of housing equity in a looming baby boomer retirement cash-flow crisis: An Australian perspectiveThe potential role of housing equity in a looming baby boomer retirement cash-flow crisis: An Australian perspective
www.tandfonline.com [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

Baby boomers, consumption and social change: the bridging generation?Baby boomers, consumption and social change: the bridging generation?
www.tandfonline.com [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

Difference between financial intelligence on millennials, gen x, and baby boomersDifference between financial intelligence on millennials, gen x, and baby boomers
repository.petra.ac.id [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …

Financial management, coping and debt in households under financial strainFinancial management, coping and debt in households under financial strain
www.sciencedirect.com [PDF]
… Volume 54, Issue 1, January 2007, Pages 205-224. Journal of Monetary Economics … respondents' checking and savings account balances, certificates of deposits and T-bills, bonds, stocks … excludes housing equity has a substantive effect on measures of Baby Boomers' financial …



Q&A About Baby Bills


When did this happen?

This happened in 1993 and 1994 when they were sued by the Justice Department over possible collusion between IBM and Microsoft, then settled with them in 1994 after documents signed by the company force them to agree not to "squelch" competition by creating operating system dominance, and finally filed a complaint about violating their decree in 1997 after years of trials and appeals until they were able answer back with an agreement in 21..

Why was this policy created?

To reduce the racial wealth gap between white and black young Americans from a factor of 16 to a factor of 1.4. This was projected by Naomi Zewde's 219 analysis of the proposal. She also found that it would increase median net worth among African American households, which she says "would likely have positive effects on economic mobility."

Who proposed baby bonds?

Economists William Darity and Darrick Hamilton proposed baby bonds in 21 as a mechanism to reduce the racial wealth gap in the United States.

Why was there a call to break up Microsoft?

The U.S. government called for the breakup of Microsoft because it violated antitrust rules.

How does a baby bond program work?

A government would set up an account for every child born, with more generous funding for lower-income families. The money could be used for education or other purposes when they reach adulthood.

What is Baby Bills?

A hypothetical nickname for the smaller companies that would have been formed if Microsoft had been broken up for violation of antitrust rules in 2.

What is the name of this policy?

Baby bonds.

How did the decision to break up Microsoft get reversed?

The decision was reversed because the U.S. government decided not to break up the company after all, but rather allow them to continue operating as one company instead.

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