"I regard this contest as one to determine who shall rule this free country—the people through their governmental agents, or a few ruthless and domineering men whose wealth makes them peculiarly formidable because they hide behind the breastworks of corporate organization.”
Address at the Pilgrim Memorial Monument, Provincetown, Mass., August 20, 1907
Editor - I have come full circle from insane libertarian laissez-faire capitalism to fully embracing the trust busting Theodore Roosevelt. Simply the corrupt Malefactors of Great Wealth not only own both parties in Congress but also own the Media Machine that spoon feeds us the news the Elites want us to hear. Break up the ultra huge corporations and allow freedom to return.
Why is monopoly power increasing? The best minds in the econ profession are on the case, but there’s no definitive answer yet.
In a previous post, I mentioned a couple of potential causes. The obvious culprit would be a more lax attitude toward antitrust enforcement. If free-market fundamentalism caused the U.S. to be friendlier toward big mergers since the 1990s, this could have encouraged concentration.
Another possible cause is regulation. Measured by sheer number of words, the amount of federal regulation has been on the rise.
Regulation can increase monopoly power by raising barriers to entry. If a new startup has to wade through oceans of red tape, pay millions of dollars in compliance costs and develop a whole regulatory compliance infrastructure just to start to be able to compete in a market, it gives the big established players a huge and enduring advantage. Big companies are able to bear the cost of regulation much better than small ones. If it turns out that regulation is a central reason behind increased market concentration, I’ll have to become much more libertarian.
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