The Monopolization of America

Happy Mother’s Day to all the blessed women who bore & raised & nurtured us through adulthood.  If your mother is still alive, as mine thankfully is, show her your full love today.  If not, tell her story to your children & grandchildren & anyone who will listen & benefit.

As I mentioned in my last post, Robert Reich is one of my true heroes and sources of inspiration.  In a recent inequality media video, The Monopolization of America” he details the high cost concentrated business control exerts on our economic and political systems.  I had previously written about this in my April 3rd post, “Small is Beautiful,” but since only two people viewed it and none commented, perhaps it warrants a revisit.

Reich begins the video with Monsanto as an example.  This agribusiness giant controls 90% of the soybean seeds and 80% of corn in the US, allowing them to raise prices beyond a competitive market rate.  He goes on to detail “monopolies everywhere”: the 4 largest meatpacking companies control 75% of sales; the 10 largest food companies have 80% of branded products.  2 companies produce 80% of the toothpaste; 2 large companies, Nestle & Mars, produce 90% of the cat food; 4 large drug companies dominate the pharmaceutical market and inflate prices by billions per year.  A few large health insurers control most local markets.  4 behemoths dominate cable & internet services, often in a local monopoly.  He doesn’t even mention the nation’s largest banks, which are “too bigger to fail” than ever, but does cite tech giants Google, Amazon, Facebook and Apple, the latest manifestation of our “New Gilded Age.”

The first Gilded Age, 1870s – 1920s, was brought down by anti-monopoly legislation and the ravages of the Great Depression.  The Sherman Anti Trust Act of 1890, at first little enforced against the railroad, steel, oil and financial “trusts” that dominated state legislatures and Congress, was eventually given teeth by presidents Theodore Roosevelt, who broke the Northern Securities railroad trust, and William Howard Taft, who dismantled John D. Rockefeller’s Standard Oil Co.  Woodrow Wilson added the Clayton Act and the 17th Amendment, providing for direct election of Senators.  The power of the national government really can be wielded on behalf of economic justice, when politicians heed the will of the people and the common good, rather than the selfish machinations of concentrated wealth!

For the next 50 years, the federal government relied on a mixture of active regulation of concentrated business and breaking up “trusts” when necessary.  In 1950, the Alcoa Aluminum company was broken up for achieving an effective monopoly, even though they never sought one.  By 1960 overly big businesses were held in check and the the ratio of CEO pay to the average worker was 30:1.  Then came 1980 and Ronald Reagan.  If you’re a “progressive” (a label I shun) or pro worker & poor (which I enthusiastically embrace) Reagan’s election was the nadir of our our political economy, the “great divide” that ended 50 years of progress toward increasing equality and ushered in a government “of the rich, by the rich and for the rich” that endures to present.  Today, the average CEO earns 300 times their average worker and Jeff Bezos of Amazon sees space travel as the only way to spend down some of his $131 billion (and counting) fortune.

Since the 1980s successive administrations, both Democratic and Republican, have prostrated themselves at the altar of the rich for modest campaign contributions.  This is why none have made a dent in rising economic equality.  Case in point: The CEO of AT&T just apologized (because they got caught) for paying $1.2 million to Michael Cohen to influence the Trump Administration to approve an $85 billion proposed merger with Time-Warner, which the Justice Dept. thankfully opposes.  The same article noted that AT&T spent over $17 million on lobbying last year – chump change for a multi-billion corporation, but enough to buy a lot of political support on Capitol Hill.

Note also President Trump’s new prescription drug proposal, which includes no mechanism to limit drug prices or allow the government to negotiate better rates for the massive Medicare and Medicaid programs.  Also Trump’s empty threats to stand up to the National Rifle Association after Parkland, rescinded once Republican legislators reminded him of how much they rely on NRA cash to maintain their Congressional majority.  As the old Who song goes, “Meet the new boss, same as the old boss.”

The rich are too damn rich and have too damn much political power.  Just a little bit of their huge surplus is enough to turn politicians into lapdogs, doing their bidding and angling to join them in lobbying and law firms once their “public service” is done.  Currently I’m reading Democracy in America: What Went Wrong?  by Benjamin Page and Martin Gillens.  In Chapter 3 they find that, in examining 1800 discrete public policies, once you discount elite and interest group preferences, general public opinion has virtually NO impact on the outcome. “Well,” as Dana Carvey used to say as the Church Lady on Saturday Night Live, “isn’t that precious!”

We need effective anti-monopoly enforcement, campaign finance reform and publicly financed elections.  More to the point, we need a new social movement that puts the needs of the poor and working classes at the forefront of American politics, rather than in the dustbin of history, as Marx might say.  I’m talking about the type of Poor People’s Movement  that Dr. King gave his life for, in the toughest and least successful battle of his career.

Yet, while I write this, I’m listening to a “60 Minutes” interview about  a new film on Pope Francis, the headliner of my blog.  His opening remark: “Humanity is mostly deaf.”  Amen to that.  Jesus used to say “those who have ears to hear, let them hear.”  Is anyone really listening?  What would it take to bring forth a response?