Monopoly Capitalism Is the Root of All of America's Problems
By Daniela Perdomo, AlterNet
Posted on December 31, 2009, Printed on January 1, 2010
http://www.alternet.org/story/144787/
Something is rotten in the state of American capitalism, and if you agree with Barry C. Lynn, almost all stinky paths lead to the monopolization of our economy. The rise of behemoths like Wal-Mart and Viacom are not only lowering the quality and safety of the products you use, but also undermining our so-called democracy.
I had a chance to speak to Lynn about just how bad things are -- and what we might be able to do about it. Lynn's new book, Cornered: The New Monopoly Capitalism and the Economics of Destruction, from Wiley Press, will be out in January.
Q: In the book you say we have no choice but to reverse the process of monopolization in our economy. How can we practically achieve that, at this stage of the game?
Barry C. Lynn: We can achieve it and there’s proof we can because we’ve done it in the past. In the late 19th century there was a really incredible process of monopolization. In the Guilded Age, you ended up with really tight concentration of control over finance in Wall Street. Think of Standard Oil, of U.S. Steel. There was some effort to break up those companies in the early 20th century but the real change took place after what people call the Second New Deal. The Roosevelt administration ended up breaking up a number of companies. What they did most successfully is stop the growth of massive companies and created space for new companies to grow.
In the middle of 20th century century, again there was a case in which we actually undid many of the powers and protected the entrepreneur. It was policy that at least three or four companies had to be competing with each other in each industry -- and preferably eight or ten. There’s the Alcoa case, for example. They had a 100 percent monopoly through the end of World War II. After the war, the government created opportunities for new companies and forced Alcoa to share its technology with new companies.
(Continued here.)
Posted on December 31, 2009, Printed on January 1, 2010
http://www.alternet.org/story/144787/
Something is rotten in the state of American capitalism, and if you agree with Barry C. Lynn, almost all stinky paths lead to the monopolization of our economy. The rise of behemoths like Wal-Mart and Viacom are not only lowering the quality and safety of the products you use, but also undermining our so-called democracy.
I had a chance to speak to Lynn about just how bad things are -- and what we might be able to do about it. Lynn's new book, Cornered: The New Monopoly Capitalism and the Economics of Destruction, from Wiley Press, will be out in January.
Q: In the book you say we have no choice but to reverse the process of monopolization in our economy. How can we practically achieve that, at this stage of the game?
Barry C. Lynn: We can achieve it and there’s proof we can because we’ve done it in the past. In the late 19th century there was a really incredible process of monopolization. In the Guilded Age, you ended up with really tight concentration of control over finance in Wall Street. Think of Standard Oil, of U.S. Steel. There was some effort to break up those companies in the early 20th century but the real change took place after what people call the Second New Deal. The Roosevelt administration ended up breaking up a number of companies. What they did most successfully is stop the growth of massive companies and created space for new companies to grow.
In the middle of 20th century century, again there was a case in which we actually undid many of the powers and protected the entrepreneur. It was policy that at least three or four companies had to be competing with each other in each industry -- and preferably eight or ten. There’s the Alcoa case, for example. They had a 100 percent monopoly through the end of World War II. After the war, the government created opportunities for new companies and forced Alcoa to share its technology with new companies.
(Continued here.)
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