In The Hidden History of Monopolies: How Big Business Destroyed the American Dream, Thom Hartmann takes the reader from the founders’ fight against the monopoly of the British East India Company to the borking of the country by President Donald J. Trump.
Like his other Hidden History books, this one is a quick but important read for people who want or need to review the history and origins of today’s concerted, well-organized campaign by corporations to control commerce, government, and thereby our lives.
“Today, giant corporatism — the commercialization of just about everything at the expense of our civilization’s civic, spiritual, health, and safety values, and other conditions needed for the well-being of future generations confronting poverty, addressing planetary climate crises, and averting nuclear war — is crushing our democracy,” Ralph Nader wrote in the book’s forward. “It is corrupting our elections, and astonishingly enough, controlling the vast commons — public lands; public airwaves; vast pension and mutual funds; and industry-creating, government-funded research and development — owned by the American people.”
We’ve heard the phrase “taxation without representation” as it pertains to the founding of the United States. Hartmann turns this around to what was really at stake: a monopoly on tea and other products sanctioned by the British government. It was concern with monopolies, the British East India Company specifically, not taxation that caused the Boston Tea Party. Founder Thomas Jefferson had monopolies on his mind even after the U.S. Constitution was ratified in 1789 according to Hartmann.
Nontheless, monopolistic practices grew during the 19th Century with the rise of industrialization. In his book The Robber Barons: The Classic Account of the Influential Capitalists Who Transformed America’s Future, Matthew Josephson described the rise of men like John D. Rockefeller, J. Pierpont Morgan, Cornelius Vanderbilt, Andrew Carnegie and others who pioneered vertical integration of companies, a form of monopoly. Their actions led to significant control over oil, railroads, steel making, coal mining, banking and other industries during the Gilded Age.
Beginning in 1887 with the Interstate Commerce Act, the U.S. Government began to regulate big business. It was followed by the Sherman Antitrust Act of 1890, and the Clayton Antitrust Act of 1914. If the founders opposed monopolies and they formed anyway, it was the role of government to regulate them. Hartmann well-describes this history.
It was president Ronald Reagan, under the guidance of Robert Bork and the Chicago School economists, who began de-fanging antitrust regulations.
Many of us are familiar with the July 1, 1987 nomination of Robert Bork to the U.S. Supreme Court and how Senator Ted Kennedy rose in the well of the U.S. Senate to oppose the nomination within 45 minutes of its being made. Previously, along with Milton Friedman, Bork pioneered the phrase, “consumer welfare.” It changed everything.
“In essence, (Bork) argued, it didn’t matter where a product was produced or sold, or by whom,” Hartmann wrote. “All that mattered was the price the consumer paid. As long as that price was low, all was good with the world.” The corollary was that business profitability was another measure of antitrust. Since Reagan the latter gained preeminence. This is referred to as the borking of America.
By the end of the book I became highly agitated and outraged that our government has become an instrument of corporations intent on shaking down the American people, giving any return on capital to a group of about 100 billionaires as Hartmann describes.
The Hidden History of Monopolies is written in classic Hartmann style and can be read over a weekend. If readers are concerned about banking abuses, dairy farmer bankruptcies, insulin price fixing, the cost of internet and telephone service, big agriculture, and more, Hartmann traces their roots to giant corporations and a systemic borking of America that deregulated business and freed corporations from constraints.
Don’t have time to read the book? Here’s a fifteen minute interview of Hartmann by David Pakman that covers some of it.