Send a Tweet
Most Popular Choices
Share on Facebook 6 Share on Twitter 1 Printer Friendly Page More Sharing
OpEdNews Op Eds   

On Monopolies -- from Standard Oil to Google and Amazon

By       (Page 1 of 3 pages) (# of views)   3 comments
Author 500573
Message Arshad M Khan

Note: This article first appeared on Counterpunch.org


One of the very first investigative journalists, Ida Tarbell went after the "throttling hand" of Standard Oil and John D. Rockefeller. By 1880, the company owned 90 percent of US oil, its transport and its sale.


Writing a series of articles over a two-year period, Tarbell's expose led to a Supreme Court ruling in 1911 ordering the dissolution of Standard Oil -- so massive, it was broken up into 34 corporations.


John D. Rockefeller who called the journalist Miss Tar Barrel -- echoes of Donald Trump here -- was the country's first billionaire. If he spent his later years giving away much of his fortune to found universities and fund research, he had been in his younger days a ruthless competitor.


Monopolies controlling markets can set prices to their own liking. They can raise them to increase income or cut them to stifle competition. In effect, they are interfering with the free market forces so ardently espoused by University of Chicago economists. On this issue conservatives and liberals have common ground, but the question is what to do with monopolies. There is break-up and there is regulation.


Utilities are regulated but if one has been exposed to utility bills in many parts of the country, one has to wonder how well. The renowned economist George Stigler in a landmark study covering 60 years of electricity regulation (1900-1960), in regions with varying degrees of regulatory oversight, found the differences in prices to be negligible. The finding surprised economists, and it, added to Stigler's enormous output, garnered him a Nobel Prize, the Nobel citation specifically noting the work.


If monopolies damage free-markets, there is an issue staring us in the face today: the digital colossi Google, Facebook and the aptly named Amazon. Then there is Apple with an iPhone monopoly. The market has been unable to check their increasing power.


The University of Chicago's Stigler Center for the Study of the Economy and the State has recently cast its gaze on the issue. A Stigler Center group headed by Yale economist Fiona Scott Morton analyzed the market structure of these digital behemoths. And last May she delivered its recommendation to the US Senate as part of a hearing on digital advertising and competition policy.


Next Page  1  |  2  |  3

 

Must Read 1   Well Said 1   Interesting 1  
Rate It | View Ratings

Arshad M Khan Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Arshad M Khan is a former Professor. Educated at King's College London, Oklahoma State University and the University of Chicago, he has a multidisciplinary background that has frequently informed his research. He was elected a Fellow of the (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

a Chilling Documentary, the UN Discusses the Rohingya and an International Judges Tribunal Declares Genocide

Assad Is Not an Idiot

Oh Say Can We Really See ...

Trump Tweets Scorn As Weather Disasters Sweep World

Unusual Independence Day Military Display -- An Iran Bluff or Could It Signal a War?

Is the U.S. Losing Its Clout?

Comments Image Post Article Comment and Rate This Article

These discussions are not moderated. We rely on users to police themselves, and flag inappropriate comments and behavior. In accordance with our Guidelines and Policies, we reserve the right to remove any post at any time for any reason, and will restrict access of registered users who repeatedly violate our terms.

  • OpEdNews welcomes lively, CIVIL discourse. Personal attacks and/or hate speech are not tolerated and may result in banning.
  • Comments should relate to the content above. Irrelevant, off-topic comments are a distraction, and will be removed.
  • By submitting this comment, you agree to all OpEdNews rules, guidelines and policies.
          

Comment Here:   


You can enter 2000 characters. To remove limit, please click here.

Please login or register. Afterwards, your comment will be published.
 

Username
Password

Forgot your password? Click here and we will send an email to the address you used when you registered.
First Name
Last Name

I am at least 16 years of age
(make sure username & password are filled in. Note that username must be an email address.)

2 people are discussing this page, with 3 comments  Post Comment


Kate Jones

Become a Fan
Author 77226
(Member since Mar 7, 2012), 4 fans, 80 comments (View Extended Stats)
Not paid member and Facebook page url on login Profile not filled in Not paid member and Twitter page url on login Profile not filled in Not paid member and Linkedin page url on login Profile not filled in Not paid member and Instagram page url on login Profile not filled in

  New Content

What's wrong with monopolies? Those big entities got that way by supplying what so many people want that the people spend their money happily dealing with those companies. If the monopolies become too expensive, that will open opportunities for competitors. Since businesses are an organic part of the social structure, let's compare them to the body. Would you want to restrict, break up, extort from, and punish the monopolistic organs, like the heart, lungs, liver, stomach, brain? Yes, you have two kidneys, but they are not competing against each other, either, more like a back-up. Would the body work more efficiently if these organs were forced to compete among themselves? Even the helpful bacteria by the trillions coordinate their activities for their own and the host's health. The only time we get into internal competition is when we're invaded by outside diseases. My conclusion: leave our monopolies alone. Weakening them weakens the entire societal body.

Submitted on Monday, Dec 2, 2019 at 1:57:38 AM

Author 0
Add New Comment
  Recommend  (0+)
Help
Indent

shad williams

Become a Fan
Author 63282
(Member since Apr 13, 2011), 24 fans, 66 articles, 17 quicklinks, 3338 comments, 2 diaries (View Extended Stats)
Facebook page url on login Profile not filled in Twitter page url on login Profile not filled in Linkedin page url on login Profile not filled in Instagram page url on login Profile not filled in

Reply to Kate Jones:   New Content

Get out of here.

Submitted on Monday, Dec 2, 2019 at 8:30:10 AM

Author 0
Add New Comment
  Recommend  (0+)
Help

shad williams

Become a Fan
Author 63282
(Member since Apr 13, 2011), 24 fans, 66 articles, 17 quicklinks, 3338 comments, 2 diaries (View Extended Stats)
Facebook page url on login Profile not filled in Twitter page url on login Profile not filled in Linkedin page url on login Profile not filled in Instagram page url on login Profile not filled in

  New Content

I didnt realize that the lying murderous, thieving John D reformed and became a saint. How did I miss that? Breaking up is not so hard to do when one controls the system especially when the fake break up was designed to create even more explosive plunder and growth. Google? Fool me twice maybe dont tase me bro, or dont be terrible wasting my mind, etc.

Submitted on Monday, Dec 2, 2019 at 8:28:32 AM

Author 0
Add New Comment
  Recommend  (0+)
Help

 
Want to post your own comment on this Article? Post Comment