Monopoly Market Quotes

The really dangerous American fascist... is the man who wants to do in the United States in an American way what Hitler did in Germany in a Prussian way. The American fascist would prefer not to use violence. His method is to poison the channels of public information. With a fascist the problem is never how best to present the truth to the public but how best to use the news to deceive the public into giving the fascist and his group more money or more power... They claim to be super-patriots, but they would destroy every liberty guaranteed by the Constitution. They demand free enterprise, but are the spokesmen for monopoly and vested interest. Their final objective, toward which all their deceit is directed, is to capture political power so that, using the power of the state and the power of the market simultaneously, they may keep the common man in eternal subjection. ~quoted in the New York Times, April 9, 1944

Just as war is the natural consequence of monopoly, peace is the natural consequence of liberty.

In particular, the State has arrogated to itself a compulsory monopoly over police and military services, the provision of law, judicial decision-making, the mint and the power to create money, unused land ("the public domain"), streets and highways, rivers and coastal waters, and the means of delivering mail...the State relies on control of the levers of propaganda to persuade its subjects to obey or even exalt their rulers.

The government enforces a monopoly over the production and distribution of its alleged 'services' and brings violence to bear against would-be competitors. In so doing, it reveals the fraud at the heart of its impudent claims and gives sufficient proof that it is not a genuine protector, but a mere protection racket.

Copyright: a system of monopoly privilege over the expression of ideas that enables government to stop consumer-friendly economic development and reward uncompetitive and legally privileged elites to fleece the public through surreptitious use of coercion.

Here is an all-too-brief summary of Buffett’s approach: He looks for what he calls “franchise” companies with strong consumer brands, easily understandable businesses, robust financial health, and near-monopolies in their markets, like H & R Block, Gillette, and the Washington Post Co. Buffett likes to snap up a stock when a scandal, big loss, or other bad news passes over it like a storm cloud—as when he bought Coca-Cola soon after its disastrous rollout of “New Coke” and the market crash of 1987. He also wants to see managers who set and meet realistic goals; build their businesses from within rather than through acquisition; allocate capital wisely; and do not pay themselves hundred-million-dollar jackpots of stock options. Buffett insists on steady and sustainable growth in earnings, so the company will be worth more in the future than it is today.

The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

The true goal of capitalism is monopoly. That is all-total control of whatever market it is you choose to enter, so that you can do with it what you wish...

MONOPOLY. Tesla started with a tiny submarket that it could dominate: the market for high-end electric sports cars. Since the first Roadster rolled off the production line in 2008, Tesla’s sold only about 3,000 of them, but at $109,000 apiece that’s not trivial. Starting small allowed Tesla to undertake the necessary R&D to build the slightly less expensive Model S, and now Tesla owns the luxury electric sedan market, too. They sold more than 20,000 sedans in 2013 and now Tesla is in prime position to expand to broader markets in the future.

My religion is capitalism and the free market my creed. But it’s everyone’s right to follow their nature and fight for a monopoly and world domination. And society’s duty to oppose us. We’re just playing our roles, Bonus.

Every entrepreneur and every owner of means of production must daily justify his social function through subservience to the wants of the consumers. The management of a socialist economy is not under the necessity of adjusting itself to the operation of a market. It has an absolute monopoly. It does not depend on the wants of the consumers. It itself decides what must be done. It does not serve the consumers as the businessman does. It provides for them as the father provides for his children or the headmaster of a school for the students. It is the authority bestowing favors, not a businessman eager to attract customers.

A monopoly granted either to an individual or to a trading company, has the same effect as a secret in trade or manufactures. The monopolists, by keeping the market constantly understocked by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate. The price of monopoly is upon every occasion the highest which can be got. The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion indeed, but for any considerable time together. The

There is a belief, current in many countries, which has been elevated to the rank of an official article of faith in the United States, that free competition is itself a homeostatic process: that in a free market the individual selfishness of the bargainers, each seeking to sell as high and buy as low as possible, will result in the end in a stable dynamics of prices, and with redound to the greatest common good. This is associated with the very comforting view that the individual entrepreneur, in seeking to forward his own interest, is in some manner a public benefactor and has thus earned the great rewards with which society has showered him. Unfortunately, the evidence, such as it is, is against this simpleminded theory. The market is a game, which has indeed received a simulacrum in the family game of Monopoly. It is thus strictly subject to the general theory of games, developed by von Neumann and Morgenstern. This theory is based on the assumption that each player, at every stage, in view of the information then available to him, plays in accordance with a completely intelligent policy, which will in the end assure him of the greatest possible expectation of reward.

The more highly competitive the market for labor and for the employer’s products, the higher the cost paid for discrimination and consequently the less leeway the employer has for indulging his prejudices without risking his own profits and ultimately the financial survival of the business. On the other hand, enterprises not subject to the full stress of a competitive market—monopolies, non-profit enterprises, government agencies—have greater leeway.

Liberals are willing to believe that these "robber barons" will fix prices, rig markets, establish monopolies, buy politicians, exploit employees and fire them the day before they are eligible for pensions, but they absolutely will not believe that these same men would want to rule the world or would use Communism as the striking edge of their conspiracy. When one discusses the machinations of these men, Liberals usually respond by saying, "But don't you think they mean well?

It's WW2 and there are wage controls in place. Instead of health care, companies decide to offer employees shoes. Having absorbed those costs, they later lobby for every company to be required to offer shoes. That calls forth regulation and monopolization of the shoe industry. Shoes are heavily subsidized. Every shoe must be approved. Producers must be domestic. They must adhere to a certain quality. They can't discriminate based on foot size or individual need. Prices rise, and some people lack shoes, so the Affordable Shoe Act forces everyone to buy into an official shoe plan or pay a fee. Here we have a perfect plan for making shoes egregiously expensive. The entire country would be consumed with the fear of being shoeless if they lose their job. The left wing calls for a single shoe provider to offer universal shoes and the right wing meekly suggests that shoe makers be permitted to sell across state lines. Meanwhile, libertarians suggest that we just forget the whole thing and let the market make and deliver shoes of every quality to anyone from anyone. Everyone screams that this is an insane and dangerous idea.

The Monopoly Question Are you starting with a big share of a small market?

purportedly free market, corrupt officials and state-owned companies looking to leverage their monopoly positions into profits.

But patents are not market devices. They are the opposite. They are a government-sanctioned monopoly permitting exclusive sales of a product for a limited period of time, protected by courts of law.

You’ve probably heard about “first mover advantage”: if you’re the first entrant into a market, you can capture significant market share while competitors scramble to get started. But moving first is a tactic, not a goal. What really matters is generating cash flows in the future, so being the first mover doesn’t do you any good if someone else comes along and unseats you. It’s much better to be the last mover—that is, to make the last great development in a specific market and enjoy years or even decades of monopoly profits. The way to do that is to dominate a small niche and scale up from there, toward your ambitious long-term vision. In this one particular at least, business is like chess. Grandmaster José Raúl Capablanca put it well: to succeed, “you must study the endgame before everything else.

The perspective I have on it now is that when I was trading my own account, it was like trading monopoly money. My trading capital was just something I kept score with. I detached myself emotionally from it.

Our living quarters were in the same compound as the Eastern District administration. Government offices were mostly housed in large mansions which had been confiscated from Kuomintang officials and wealthy landlords. All government employees, even senior officials, lived at their office. They were not allowed to cook at home, and all ate in canteens. The canteen was also where everyone got their boiled water, which was fetched in thermos flasks. Saturday was the only day married couples were allowed to spend together. Among officials, the euphemism for making love was 'spending a Saturday." Gradually, this regimented life-style relaxed a bit and married couples were able to spend more time together, but almost all still lived and spent most of their time in their office compounds. My mother's department ran a very broad field of activities, including primary education, health, entertainment, and sounding out public opinion. At the age of twenty-two, my mother was in charge of all these activities for about a quarter of a million people. She was so busy we hardly ever saw her. The government wanted to establish a monopoly (known as 'unified purchasing and marketing') over trade in the basic commodities grain, cotton, edible o'fi, and meat. The idea was to get the peasants to sell these exclusively to the government, which would then ration them out to the urban population and to parts of the country where they were in short supply.

Today financial capitalism is fraught with special interests, corporate monopolies, and an opacity that would have boggled Smith’s mind. Let me be clear: despite my criticism of our existing model of financial capitalism, this book isn’t anticapitalist. I am not in favor of a planned economy or a turn away from a market system. I simply don’t think that the system we have now is a properly functioning market system.

The Industrial Revolution started and made its biggest strides in England because of her uniquely inclusive economic institutions. These in turn were built on foundations laid by the inclusive political institutions brought about by the Glorious Revolution. It was the Glorious Revolution that strengthened and rationalized property rights, improved financial markets, undermined state-sanctioned monopolies in foreign trade, and removed the barriers to the expansion of industry. It was the Glorious Revolution that made the political system open and responsive to the economic needs and aspirations of society. These inclusive economic institutions gave men of talent and vision such as James Watt the opportunity and incentive to develop their skills and ideas and influence the system in ways that benefited them and the nation. Naturally these men, once they had become successful, had the same urges as any other person. They wanted to block others from entering their businesses and competing against them and feared the process of creative destruction that might put them out of business, as they had previously bankrupted others.

Substitution competition is a natural limit or control on prices. In a permaculture economy, every useful product or service in a market coexists with a variety of substitutes. There is a point to which monopolies become uneconomical/ unprofitable. Almost every product or service, or their inputs, may be used for a variety of purposes by a variety of consumers, If the price (a) causes there to be more or less consumption of (b) then a and b are substitutes. Substitution competition eventually causes monopolies to shrink or fail , or creates new market space which renders the previous monopoly relatively smaller in size and therefore not a monopoly in the context of the expanded economy

Monopoly is a market, or part of a market, reserved to the exclusive possession of one or more sellers by means of the initiation of physical force by the government, or with the sanction of the government. Monopoly exists insofar as the freedom of competition is violated, with the freedom of competition being understood as the absence of the initiation of physical force as the preventive of competition. Where there is no initiation of physical force to violate the freedom of competition, there is no monopoly. The freedom of competition is violated only insofar as individuals are excluded from markets or parts of markets by means of the initiation of physical force. Monopoly is thus a market or part of a market reserved to the exclusive possession of one or more sellers by means of the initiation of physical force. It is thus something imposed upon the market from without—by the government. (Private individuals—gangsters—can initiate force to reserve markets only if the government allows it and thereby sanctions it.) Thus, monopoly is not something which emerges from the normal operation of the economic system, and which the government must control.

In this book industry we have different kinds of birds; excepting one; all having in common that they are ONLY watchers and squawkers at the pond. We have readers, editors, reviewers, interviewers, publishers, marketers, websites, monopolies, and writers. All are better compensated than the writers. Yet the system is totally upside down as those better rewarded are all derivative of what is primary; the writer. Without that person the readers have nothing to read; the editors have nothing to edit; the reviewers have nothing to review; the interviewers have no one to interview; the publishers have nothing to publish; the marketers have nothing to market; the website cannot adware infect ‘members,’ and the legalized monopolies have nothing to monopolize. So, in effect, this is where the troll steps in. He’s kind of a writer; but he’s not taking the time to churn out masterpieces. He’s just effortlessly telling the vultures exactly what they are.

One of the many signs of verbal virtuosity among intellectuals is the repackaging of words to mean things that are not only different from, but sometimes the direct opposite of, their original meanings. 'Freedom' and 'power' are among the most common of these repackaged words. The basic concept of freedom as not being subjected to other people's restrictions, and of power as the ability to restrict other people's options have both been stood on their heads in some of the repackaging of these words by intellectuals discussing economic issues. Thus business enterprises who expand the public's options, either quantitatively (through lower prices) or qualitatively (through better products) are often spoken of as 'controlling' the market, whenever this results in a high percentage of consumers choosing to purchase their particular products rather than the competing products of other enterprises. In other words, when consumers decide that particular brands of products are either cheaper or better than competing brands of those products, third parties take it upon themselves to depict those who produced these particular brands as having exercised 'power' or 'control.' If, at a given time, three-quarters of the consumers prefer to buy the Acme brand of widgets to any other brand, then Acme Inc. will be said to 'control' three-quarters of the market, even though consumers control 100 percent of the market, since they can switch to another brand of widgets tomorrow if someone else comes up with a better widget, or stop buying widgets altogether if a new product comes along that makes widgets obsolete. ....by saying that businesses have 'power' because they have 'control' of their markets, this verbal virtuosity opens the way to saying that government needs to exercise its 'countervailing power' (John Kenneth Galbraith's phrase) in order to protect the public. Despite the verbal parallels, government power is in fact power, since individuals do not have a free choice as to whether or not to obey government laws and regulations, while consumers are free to ignore the products marketed by even the biggest and supposedly most 'powerful' corporations in the world.

In contrast to Ricardo’s expectation that banking would retain its early focus on international commerce — and hence,on industrial capital formation to provide foreign markets with British exports in exchange for raw materials — banking has found real estate to be the key, along with its traditional market in creating monopolies and trusts. Some 80% of bank loans in the United States and Britain are mortgages, and consequently they account for 70% of the economy’s interest payments.

Surprising as it may seem today, classical ideas of creating a free market were to be achieved by “socialist” reforms. Their common aim was to protect populations from having to pay prices that included a non-labor rent or financial tax to pay landlords and natural resource owners, monopolists and bondholders. The vested interests railed against public regulation and taxation along these lines. They opposed public ownership or even the taxation of land, natural monopolies and banking. They wanted to collect rent and interest, not make land, banking and infrastructure monopolies public in character.

Terrorism is vicious, ugly, and dehumanizing for its perpetrators as well as its victims. But so is war. You could says that terrorism is the privatization of war. Terrorists are the free marketeers of war. They are people who don't believe that the state has a monopoly on the legitimate use of violence.

Buchanan carried the anti-organized-labor message into his classes, teaching his students that the Wagner Act had licensed “union monopolies” that distorted the wage structure. He used an example involving the state’s labor market, blaming the United Mine Workers of America for the rising unemployment of coal valleys.

Market fundamentalism is a harsh accusation. Christian fundamentalists are notorious for their strict biblical literalism, their unlimited willingness to ignore or twist the facts of geology and biology to match their prejudices. For the analogy to be apt, the typical economist would have to believe in the superiority of markets virtually without exception, regardless of the evidence, and dissenters would have to fear excommunication. From this standpoint, the charge of “market fundamentalism” is silly, failing even as a caricature. If you ask the typical economist to name areas where markets work poorly, he gives you a list on the spot: Public goods, externalities, monopoly, imperfect information, and so on. More importantly, almost everything on the list can be traced back to other economists. Market failure is not a concept that has been forced upon a reluctant economics profession from the outside. It is an internal outgrowth of economists’ self-criticism. After stating that markets usually work well, economists feel an urge to identify important counterexamples. Far from facing excommunication for sin against the sanctity of the market, discoverers of novel market failures reap professional rewards. Flip through the leading journals. A high fraction of their articles present theoretical or empirical evidence of market failure.

Bolshevik socialism (anticapitalism) attracted and gave meaning to the shock-troop activists, supplied the vocabulary and worldview of millions in the party and beyond, and achieved a monopoly over the public sphere, but this same politically empowering ideology afforded no traction over the international situation or the faltering quasi-market domestic economy.

Normally, the easiest way to [use money to get more money, i.e. capitalism] is by establishing some kind of formal or de facto monopoly. For this reason, capitalists, whether merchant princes, financiers, or industrialists, invariably try to ally themselves with political authorities to limit the freedom of the market, so as to make it easier for them to do so. From this perspective, China was for most of its history the ultimate anti-capitalist market state. Unlike later European princes, Chinese rulers systematically refused to team up with would-be Chinese capitalists (who always existed). Instead, like their officials, they saw them as destructive parasites--though, unlike the usurers, ones whose fundamental selfish and antisocial motivations could still be put to use in certain ways. In Confucian terms, merchants were like soldiers. Those drawn to a career in the military were assumed to be driven largely by a love of violence. As individuals, they were not good people, but they were also necessary to defend the frontiers. Similarly, merchants were driven by greed and basically immoral; yet if kept under careful administrative supervision, they could be made to serve the public good. Whatever one might think of the principles, the results are hard to deny. For most of its history, China maintained the highest standard of living in the world--even England only really overtook it in perhaps the 1820s, well past the time of the Industrial Revolution.

In a completely free market, unsupervised by kings and priests, avaricious capitalists can establish monopolies or collude against their workforces. If there is a single corporation controlling all shoe factories in a country, or if all factory owners conspire to reduce wages simultaneously, then the labourer are no longer able to protect themselves by switching jobs.

Ideally, a fair and equitable society would regulate debt in line with the ability to be paid without pushing economies into depression. But when shrinking markets deepen fiscal deficits, creditors demand that governments balance their budgets by selling public monopolies. Once the land, water and mineral rights are privatized, along with transportation, communications, lotteries and other monopolies, the next aim is to block governments from regulating their prices or taxing financial and rentier wealth. The neo-rentier objective is threefold: to reduce economies to debt dependency, to transfer public utilities into creditor hands, and then to create a rent-extracting tollbooth economy. The financial objective is to block governments from writing down debts when bankers and bondholders over-lend. Taken together, these policies create a one-sided freedom for rentiers to create a travesty of the classical “Adam Smith” view of free markets. It is a freedom to reduce the indebted majority to a state of deepening dependency, and to gain wealth by stripping public assets built up over the centuries.

The same reasons apply to unions. Industry-wide price-fixing causes economic dislocations? So does industry-wide wage-fixing. A wage that is appropriate in one part of the country may not be in another area where economic conditions are very different. Corporate monopolies impair the operation of the free market, and thus injure the consuming public. So do union monopolies.

Today the message most commentators take from Adam Smith is that government should get out of the way. But that was not Smith’s message. He was enthusiastic about government regulation so long as it wasn’t simply a ruse to advantage one set of commercial interests over another. When “regulation . . . is in favor of the workmen,” he wrote in The Wealth of Nations, “it is always just and equitable.” He was equally enthusiastic about the taxes needed to fund effective governance. “Every tax,” he wrote, “is to the person who pays it a badge, not of slavery but of liberty.”9 Contemporary libertarians who invoke Smith before decrying labor laws or comparing taxation to theft seem to have skipped these passages. Far from a tribune of unregulated markets, Smith was a celebrant of effective governance. His biggest concern about the state wasn’t that it would be overbearing but that it would be overly beholden to narrow private interests. His greatest ire was reserved not for public officials but for powerful merchants who combined to rig public policies and repress private wages. These “tribes of monopoly” he compared with an “overgrown standing army” that had “become formidable to the government, and upon many occasions intimidate the legislature.” Too often, Smith maintained, concentrated economic power skewed the crafting of government policy. “Whenever the legislature attempts to regulate the differences between masters and their workmen,” he complained, “its counsellors are always the masters. . . . They are silent with regard to the pernicious effects of their own gains. They complain only of those of other people.”10

At the same time, I began to question the efficacy of government for improving human lives. I came to suspect that taxation, restrictions, mandates, subsidies, licenses, tariffs, bailouts, prohibitions and all the rest, even if well-intended, usually protect monopoly, cause recession, burden the poor, enforce racial discrimination (as I learned from Jennifer Roback, the Jim Crow laws were legislation), obstruct education, and so on.

Not only does the State do the work badly on a domain not its own, bunglingly, at greater cost, and with less fruit than spontaneous organizations, but, again, through the legal monopoly which it deems its prerogative, or through the overwhelming competition which it exercises, it kills or paralyzes these natural organizations or prevents their birth; and hence so many precious organs, which, absorbed, atropic or abortive, are lost to the great social body.

With all production, employment, and distribution of output completely under the monopoly control of the State, the fate and fortune of every individual would be at the mercy of the political authority. In addition, these earlier opponents of socialism had cogently argued that with the end of private property and freedom of enterprise, individuals would lose much of the self-interested motivation for industry, innovation, and work effort that exists in a market economy.

So identified has the State become in the public mind with the provision of these services that an attack on State financing appears to many people as an attack on the service itself. Thus if one maintains that the State should not supply court services, and that private enterprise on the market could supply such service more efficiently as well as more morally, people tend to think of this as denying the importance of courts themselves. The libertarian who wants to replace government by private enterprises in the above areas is thus treated in the same way as he would be if the government had, for various reasons, been supplying shoes as a tax-financed monopoly from time immemorial. If the government and only the government had had a monopoly of the shoe manufacturing and retailing business, how would most of the public treat the libertarian who now came along to advocate that the government get out of the shoe business and throw it open to private enterprise? He would undoubtedly be treated as follows: people would cry, “How could you? You are opposed to the public, and to poor people, wearing shoes! And who would supply shoes to the public if the government got out of the business? Tell us that! Be constructive! It’s easy to be negative and smart-alecky about government; but tell us who would supply shoes? Which people? How many shoe stores would be available in each city and town? How would the shoe firms be capitalized? How many brands would there be? What material would they use? What lasts? What would be the pricing arrangements for shoes? Wouldn’t regulation of the shoe industry be needed to see to it that the product is sound? And who would supply the poor with shoes? Suppose a poor person didn’t have the money to buy a pair?” These questions, ridiculous as they seem to be and are with regard to the shoe business, are just as absurd when applied to the libertarian who advocates a free market in fire, police, postal service, or any other government operation. The point is that the advocate of a free market in anything cannot provide a “constructive” blueprint of such a market in advance. The essence and the glory of the free market is that individual firms and businesses, competing on the market, provide an ever-changing orchestration of efficient and progressive goods and services: continually improving products and markets, advancing technology, cutting costs, and meeting changing consumer demands as swiftly and as efficiently as possible.

The government monopoly of money leads not just to the suppression of innovation and experiment, not just to inflation and debasement, not just to financial crises, but to inequality too. As Dominic Frisby points out in his book Life After the State, opportunities in finance ripple outwards from the Treasury. The state spends money before it even exists; the privileged banks then get first access to newly minted money and can invest it before assets have increased in cost. By the time it reaches ordinary people, the money is worth less. This outward percolation is known as the Cantillon Effect – after Richard Cantillon, who noticed that the creation of paper money in the South Sea Bubble benefited those closest to the source first. Frisby argues that the process of money creation by an expansionary government effectively redistributes money from the poor to the rich. ‘This is not the free market at work, but a gross, unintended economic distortion caused by the colossal government intervention.’ The

There is an uncomfortable willingness among privacy campaigners to discriminate against mass surveillance conducted by the state to the exclusion of similar surveillance conducted for profit by large corporations. Partially, this is a vestigial ethic from the Californian libertarian origins of online pro-privacy campaigning. Partially, it is a symptom of the superior public relations enjoyed by Silicon Valley technology corporations, and the fact that those corporations also provide the bulk of private funding for the flagship digital privacy advocacy groups, leading to a conflict of interest. At the individual level, many of even the most committed privacy campaigners have an unacknowledged addiction to easy-to-use, privacy-destroying amenities like Gmail, Facebook, and Apple products. As a result, privacy campaigners frequently overlook corporate surveillance abuses. When they do address the abuses of companies like Google, campaigners tend to appeal to the logic of the market, urging companies to make small concessions to user privacy in order to repair their approval ratings. There is the false assumption that market forces ensure that Silicon Valley is a natural government antagonist, and that it wants to be on the public’s side—that profit-driven multinational corporations partake more of the spirit of democracy than government agencies. Many privacy advocates justify a predominant focus on abuses by the state on the basis that the state enjoys a monopoly on coercive force. For example, Edward Snowden was reported to have said that tech companies do not “put warheads on foreheads.” This view downplays the fact that powerful corporations are part of the nexus of power around the state, and that they enjoy the ability to deploy its coercive power, just as the state often exerts its influence through the agency of powerful corporations. The movement to abolish privacy is twin-horned. Privacy advocates who focus exclusively on one of those horns will find themselves gored on the other.

Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see? We’ve discussed these elements before. Whatever your industry, any great business plan must address every one of them. If you don’t have good answers to these questions, you’ll run into lots of “bad luck” and your business will fail. If you nail all seven, you’ll master fortune and succeed. Even getting five or six correct might work.

Internally, when anticommunism is the ruling ideology, almost the national religion, any legitimate complaint from below can easily be dismissed as communist. Anything that would be an obvious inconvenience to the small clique of rich families that run the country can be easily categorized as dangerous revolution, and cast aside. This includes any whiff of socialism or social democracy, any land reform, and any regulation that would reduce monopoly power and allow for more efficient development and market competition. It includes unions and any normal demands for workers’ rights.

The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see? We

All around the world, people have an overwhelming sense that something is broken. This is leading to record levels of populism in the United States and Europe, resurgent intolerance, and a desire to upend the existing order. The left and right cannot agree on what is wrong, but they both know that something is rotten. Capitalism has been the greatest system in history to lift people out of poverty and create wealth, but the “capitalism” we see today in the United States is a far cry from competitive markets. What we have today is a grotesque, deformed version of capitalism. Economists such as Joseph Stiglitz have referred to it as “ersatz capitalism,” where the distorted representation we see is as far away from the real thing as Disney's Pirates of the Caribbean are from real pirates. If what we have is a fake version of capitalism, what does the real thing look like? What should we have? According to the dictionary, the idealized state of capitalism is “an economic system based on the private ownership of the means of production, distribution, and exchange, characterized by the freedom of capitalists to operate or manage their property for profit in competitive conditions.

Economists are quick to speak of ‘market failure’, and rightly so, but a greater threat comes from ‘government failure‘. Because it is a monopoly, government brings inefficiency and stagnation to most things it runs; government agencies pursue the inflation of their budgets rather than the service of their customers; pressure groups form an unholy alliance with agencies to extract more money from taxpayers for their members. Yet despite all this, most clever people still call for government to run more things and assume that if it did so, it would somehow be more perfect, more selfless, next time.

Some have argued that capitalism promotes democracy, because of common norms of transparency, rule of law, and free competition—for markets, for ideas, for votes. In some idealized world, capitalism may enhance democracy, but in the history of the West, democracy has expanded by limiting the power of capitalists. When that project fails, dark forces are often unleashed. In the twentieth century, capitalism coexisted nicely with dictatorships, which conveniently create friendly business climates and repress independent worker organizations. Western capitalists have enriched and propped up third-world despots who crush local democracy. Hitler had a nice understanding with German corporations and bankers, who thrived until the unfortunate miscalculation of World War II. Communist China works hand in glove with its capitalist business partners to destroy free trade unions and to preserve the political monopoly of the Party. Vladimir Putin presides over a rigged brand of capitalism and governs in harmony with kleptocrats. When push comes to shove, the story that capitalism and democracy are natural complements is a myth. Corporations are happy to make a separate peace with dictators—and short of that, to narrow the domain of civic deliberation even in democracies. After Trump’s election, we saw corporations standing up for immigrants and saluting the happy rainbow of identity politics, but lining up to back Trump’s program of gutting taxes and regulation. Some individual executives belatedly broke with Trump over his racist comments, but not a single large company has resisted the broad right-wing assault on democracy that began long before Trump, and all have been happy with the dismantling of regulation. If democracy is revived, the movement will come from empowered citizens, not from corporations.

Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that

if consumer demand should increase for the goods or services of any private business, the private firm is delighted; it woos and welcomes the new business and expands its operations eagerly to fill the new orders. Government, in contrast, generally meets this situation by sourly urging or even ordering consumers to “buy” less, and allows shortages to develop, along with deterioration in the quality of its service. Thus, the increased consumer use of government streets in the cities is met by aggravated traffic congestion and by continuing denunciations and threats against people who drive their own cars. The New York City administration, for example, is continually threatening to outlaw the use of private cars in Manhattan, where congestion has been most troublesome. It is only government, of course, that would ever think of bludgeoning consumers in this way; it is only government that has the audacity to “solve” traffic congestion by forcing private cars (or trucks or taxis or whatever) off the road. According to this principle, of course, the “ideal” solution to traffic congestion is simply to outlaw all vehicles! But this sort of attitude toward the consumer is not confined to traffic on the streets. New York City, for example, has suffered periodically from a water “shortage.” Here is a situation where, for many years, the city government has had a compulsory monopoly of the supply of water to its citizens. Failing to supply enough water, and failing to price that water in such a way as to clear the market, to equate supply and demand (which private enterprise does automatically), New York’s response to water shortages has always been to blame not itself, but the consumer, whose sin has been to use “too much” water. The city administration could only react by outlawing the sprinkling of lawns, restricting use of water, and demanding that people drink less water. In this way, government transfers its own failings to the scapegoat user, who is threatened and bludgeoned instead of being served well and efficiently. There has been similar response by government to the ever-accelerating crime problem in New York City. Instead of providing efficient police protection, the city’s reaction has been to force the innocent citizen to stay out of crime-prone areas. Thus, after Central Park in Manhattan became a notorious center for muggings and other crime in the night hours, New York City’s “solution” to the problem was to impose a curfew, banning use of the park in those hours. In short, if an innocent citizen wants to stay in Central Park at night, it is he who is arrested for disobeying the curfew; it is, of course, easier to arrest him than to rid the park of crime. In short, while the long-held motto of private enterprise is that “the customer is always right,” the implicit maxim of government operation is that the customer is always to be blamed.

Apple has always insisted on having a hardware monopoly, except for a brief period in the mid-1990s when they allowed clone-makers to compete with them, before subsequently putting them out of business. Macintosh hardware was, consequently, expensive. You didn’t open it up and fool around with it because doing so would void the warranty. In fact, the first Mac was specifically designed to be difficult to open—you needed a kit of exotic tools, which you could buy through little ads that began to appear in the back pages of magazines a few months after the Mac came out on the market. These ads always had a certain disreputable air about them, like pitches for lock-picking tools in the backs of lurid detective magazines.

a perfectly competitive industry is an utter impossibility in the real world. The requirements for this status are numerous and ridiculously otherworldly: completely homogeneous products; an indefinitely large, not to say infinite, number of both buyers (to stave off monopsony)5 and sellers (to preclude monopoly); full and complete information about everything relevant on the part of all market participants; zero profits and equilibrium. The reductio ad absurdum of this objection is that, not only could roads not be privatized under such impossible criteria, but neither could anything else be. That is, this is a recipe for a complete takeover by the government of the entire economy; whether by nationalization (communism) or regulation (fascism), it matters little.

In fact, as these companies offered more and more (simply because they could), they found that demand actually followed supply. The act of vastly increasing choice seemed to unlock demand for that choice. Whether it was latent demand for niche goods that was already there or a creation of new demand, we don't yet know. But what we do know is that the companies for which we have the most complete data - netflix, Amazon, Rhapsody - sales of products not offered by their bricks-and-mortar competitors amounted to between a quarter and nearly half of total revenues - and that percentage is rising each year. in other words, the fastest-growing part of their businesses is sales of products that aren't available in traditional, physical retail stores at all. These infinite-shelf-space businesses have effectively learned a lesson in new math: A very, very big number (the products in the Tail) multiplied by a relatives small number (the sales of each) is still equal to a very, very big number. And, again, that very, very big number is only getting bigger. What's more, these millions of fringe sales are an efficient, cost-effective business. With no shelf space to pay for - and in the case of purely digital services like iTunes, no manufacturing costs and hardly any distribution fees - a niche product sold is just another sale, with the same (or better) margins as a hit. For the first time in history, hits and niches are on equal economic footing, both just entries in a database called up on demand, both equally worthy of being carried. Suddenly, popularity no longer has a monopoly on profitability.

major piece of financial regulation—the Dodd-Frank Wall Street Reform and Consumer Protection Act—moved toward passage. Wall Street money flowed to some of its fiercest critics in the 2010 election. That year, seven out of the ten top recipients of Goldman Sachs contributions, for example, were Democrats. Former Clinton secretary of labor Robert Reich declared that this was evidence that Wall Street was “bribing elected officials with their donations.”14 I would argue that Reich had the power equation wrong. It was the Permanent Political Class that threatened to cause severe damage to the financiers—not the other way around. As the late economics professor Peter H. Aranson puts it, “The real market for contributions is one of ‘extortion’ by those who hold a monopoly on the use of coercion—the officeholders.”15 The midterm election passed, and so did Dodd-Frank.

Representative democracy, as in, say, the United States or Great Britain, would be criticized by an anarchist of this school on two grounds. First of all because there is a monopoly of power centralized in the State, and secondly and critically—because representative democracy is limited to the political sphere and in no serious way encroaches on the economic sphere. Anarchists of this tradition have always held that democratic control of one's productive life is at the core of any serious human liberation, or, for that matter, of any significant democratic practice. That is, as long as individuals are compelled to rent themselves on the market to those who are willing to hire them, as long as their role in production is simply that of ancillary tools, then there are striking elements of coercion and oppression that make talk of democracy very limited, if even meaningful.

The answer to this question is closely connected with that other question which arises here, that of who is to do the planning. It is about this question that all the dispute about “economic planning” centers. This is not a dispute about whether planning is to be done or not. It is a dispute as to whether planning is to be done centrally, by one authority for the whole economic system, or is to be divided among many individuals. Planning in the specific sense in which the term is used in contemporary controversy necessarily means central planning—direction of the whole economic system according to one unified plan. Competition, on the other hand, means decentralized planning by many separate persons. The halfway house between the two, about which many people talk but which few like when they see it, is the delegation of planning to organized industries, or, in other words, monopoly.

The EEC was grounded in weakness, not strength. As Spaak’s 1956 report emphasized, ‘Europe, which once had the monopoly of manufacturing industries and obtained important resources from its overseas possessions, today sees its external position weakened, its influence declining and its capacity to progress lost in its divisions.’ It was precisely because the British did not—yet—understand their situation in this light that they declined to join the EEC. The idea that the European Common Market was part of some calculated strategy to challenge the growing power of the United States—a notion that would acquire a certain currency in Washington policy circles in later decades—is thus quite absurd: the new-formed EEC depended utterly upon the American security guarantee, without which its members would never have been able to afford to indulge in economic integration to the exclusion of all concern with common defense.

When Ayatollah Khamenei needs to make a crucial decision about the Iranian economy, he will not be able to find the necessary answer in the Quran, because seventh-century Arabs knew very little about the problems and opportunities of modern industrial economies and global financial markets. So he, or his aides, must turn to Karl Marx, Milton Friedman, Friedrich Hayek, and the modern science of economics to get answers. Having made up his mind to raise interest rates, lower taxes, privatize government monopolies, or sign an international tariff agreement, Khamenei can then use his religious knowledge and authority to wrap the scientific answer in the garb of this or that Quranic verse and present it to the masses as the will of Allah. But the garb matters little. When you compare the economic policies of Shiite Iran, Sunni Saudi Arabia, Jewish Israel, Hindu India, and Christian America, you just don’t see that much of a difference.

But capitalism has not stood still since Marx's day. Writing in the middle years of the nineteenth century, Marx could not be expected to grasp the full consequences of his insights into the centralization of capital and the development of technology. He could not be expected to foresee that capitalism would develop not only from mercantilism into the dominant industrial form of his day—from stateaided trading monopolies into highly competitive industrial units—but further, that with the centralization of capital, capitalism returns to its mercantilist origins on a higher level of development and reassumes the state-aided monopolistic form. The economy tends to merge with the state and capitalism begins to "plan" its development instead of leaving it exclusively to the interplay of competition and market forces. To be sure, the system does not abolish the traditional class struggle, but manages to contain it, using its immense technological resources to assimilate the most strategic sections of the working class.

It is certainly true that imitation is everywhere, from sport to business, from dancing to dressing, from driving to singing. In fact, imitation is at the heart of competitive behavior and of almost any kind of social interaction. Like the fixed cost cum marginal cost argument that, as we pointed out earlier, is so powerful an argument that it can be applied to any and every thing, imitation is so widespread that, when taken literally, it is also everywhere. By this token one should see unpriced externalities in every market where producers imitate each other, thereby concluding that all kinds of economic activities should be allowed some form of monopoly power. Restaurants imitate each other, as coffee shops, athletes, real estate agents, car salesmen, and even bricklayers do, but we would certainly find it foolhardy to grant to a firm in each of these businesses monopoly power over one technique or another. This suggests that equating imitation with unpriced externalities leads us into a dark night in which all cows are gray.

Mafiosi, for Franchetti, were entrepreneurs in violence, specialists who had developed what today would be called the most sophisticated business model in the marketplace. Under the leadership of their bosses, mafia bands ‘invested’ violence in various commercial spheres in order to extort protection money and guarantee monopolies. This was what he called the violence industry. As Franchetti wrote, [in the violence industry] the mafia boss . . . acts as capitalist, impresario and manager. He unifies the management of the crimes committed . . . he regulates the way labour and duties are divided out, and controls discipline amongst the workers. (Discipline is indispensable in this as in any other industry if abundant and constant profits are to be obtained.) It is the mafia boss’s job to judge from circumstances whether the acts of violence should be suspended for a while, or multiplied and made fiercer. He has to adapt to market conditions to choose which operations to carry out, which people to exploit, which form of violence to use.

To give the monopoly of the home market to the produce of domestic industry, in any particular art or manufacture, is in some measure to direct private people in what manner they ought to employ their capitals, and must, in almost all cases, be either a useless or a hurtful regulation. If the produce of domestic can be brought there as cheap as that of foreign industry, the regulation is evidently useless. If it cannot, it must generally be hurtful. It is the maxim of every prudent master of a family never to attempt to make at home what it will cost him more to make than to buy. The tailor does not attempt to make his own shoes, but buys them of the shoemaker. The shoemaker does not attempt to make his own clothes, but employs a tailor. The farmer attempts to make neither the one nor the other, but employs those different artificers. All of them find it for their interest to employ their whole industry in a way in which they have some advantage over their neighbours, and to purchase with a part of its produce, or what is the same thing, with the price of a part of it, whatever else they have occasion for

I’m not suggesting anyone has acted illegally. To the contrary: CEOs believe they are supposed to maximize shareholder returns, and one means of accomplishing that goal is to play the political game as well as it possibly can be played and field the largest and best legal and lobbying teams available. Trade associations see their role as representing the best interests of their corporate members, which requires lobbying ferociously, raising as much money as possible for political campaigns of pliant lawmakers, and even offering jobs to former government officials. Public officials, for their part, perceive their responsibility as acting in the public interest. But the public interest is often understood as emerging from a consensus of the organized interests appearing before them. The larger and wealthier the organization, the better equipped its lawyers and its experts are to assert what’s good for the public. Any official who once worked for such an organization, or who suspects he may work for one in the future, is prone to find such arguments especially persuasive. Inside the mechanism of the “free market,” the economic and political power of the new monopolies feed off and enlarge each other.

The Memory Business Steven Sasson is a tall man with a lantern jaw. In 1973, he was a freshly minted graduate of the Rensselaer Polytechnic Institute. His degree in electrical engineering led to a job with Kodak’s Apparatus Division research lab, where, a few months into his employment, Sasson’s supervisor, Gareth Lloyd, approached him with a “small” request. Fairchild Semiconductor had just invented the first “charge-coupled device” (or CCD)—an easy way to move an electronic charge around a transistor—and Kodak needed to know if these devices could be used for imaging.4 Could they ever. By 1975, working with a small team of talented technicians, Sasson used CCDs to create the world’s first digital still camera and digital recording device. Looking, as Fast Company once explained, “like a ’70s Polaroid crossed with a Speak-and-Spell,”5 the camera was the size of a toaster, weighed in at 8.5 pounds, had a resolution of 0.01 megapixel, and took up to thirty black-and-white digital images—a number chosen because it fell between twenty-four and thirty-six and was thus in alignment with the exposures available in Kodak’s roll film. It also stored shots on the only permanent storage device available back then—a cassette tape. Still, it was an astounding achievement and an incredible learning experience. Portrait of Steven Sasson with first digital camera, 2009 Source: Harvey Wang, From Darkroom to Daylight “When you demonstrate such a system,” Sasson later said, “that is, taking pictures without film and showing them on an electronic screen without printing them on paper, inside a company like Kodak in 1976, you have to get ready for a lot of questions. I thought people would ask me questions about the technology: How’d you do this? How’d you make that work? I didn’t get any of that. They asked me when it was going to be ready for prime time? When is it going to be realistic to use this? Why would anybody want to look at their pictures on an electronic screen?”6 In 1996, twenty years after this meeting took place, Kodak had 140,000 employees and a $28 billion market cap. They were effectively a category monopoly. In the United States, they controlled 90 percent of the film market and 85 percent of the camera market.7 But they had forgotten their business model. Kodak had started out in the chemistry and paper goods business, for sure, but they came to dominance by being in the convenience business. Even that doesn’t go far enough. There is still the question of what exactly Kodak was making more convenient. Was it just photography? Not even close. Photography was simply the medium of expression—but what was being expressed? The “Kodak Moment,” of course—our desire to document our lives, to capture the fleeting, to record the ephemeral. Kodak was in the business of recording memories. And what made recording memories more convenient than a digital camera? But that wasn’t how the Kodak Corporation of the late twentieth century saw it. They thought that the digital camera would undercut their chemical business and photographic paper business, essentially forcing the company into competing against itself. So they buried the technology. Nor did the executives understand how a low-resolution 0.01 megapixel image camera could hop on an exponential growth curve and eventually provide high-resolution images. So they ignored it. Instead of using their weighty position to corner the market, they were instead cornered by the market.

To fit into the Golden Straitjacket a country must either adopt, or be seen as moving toward, the following golden rules: making the private sector the primary engine of its economic growth, maintaining a low rate of inflation and price stability, shrinking the size of its state bureaucracy, maintaining as close to a balanced budget as possible, if not a surplus, eliminating and lowering tariffs on imported goods, removing restrictions on foreign investment, getting rid of quotas and domestic monopolies, increasing exports, privatizing state-owned industries and utilities, deregulating capital markets, making its currency convertible, opening its industries, stock and bond markets to direct foreign ownership and investment, deregulating its economy to promote as much domestic competition as possible, eliminating government corruption, subsidies and kickbacks as much as possible, opening its banking and telecommunications systems to private ownership and competition and allowing its citizens to choose from an array of competing pension options and foreign-run pension and mutual funds. When you stitch all of these pieces together you have the Golden Straitjacket. . . . As your country puts on the Golden Straitjacket, two things tend to happen: your economy grows and your politics shrinks. That is, on the economic front the Golden Straitjacket usually fosters more growth and higher average incomes—through more trade, foreign investment, privatization and more efficient use of resources under the pressure of global competition. But on the political front, the Golden Straitjacket narrows the political and economic policy choices of those in power to relatively tight parameters. . . . Governments—be they led by Democrats or Republicans, Conservatives or Labourites, Gaullists or Socialists, Christian Democrats or Social Democrats—that deviate too far from the core rules will see their investors stampede away, interest rates rise and stock market valuations fall.36

The justification for the antitrust laws that would ultimately break up Standard Oil is that monopoly prevented competition. Preventing competition was bad because the monopoly could charge outrageous prices. Well, every single big company in American history that had gotten big through the free market rather than legislative largesse, got that way by keeping prices low and quality high. If it were to stay that way, assuming no helping hand from the legislature, it would have to keep prices low, quality and service high.

The existence of pure public goods, natural monopolies, and externalities are clear cases of market failures.

When you think about the whole idea behind Monopoly—to take a little green house and cash it in for a much larger red hotel with more cash flow—you realize that Milton Bradley had it right!

being the first mover doesn’t do you any good if someone else comes along and unseats you. It’s much better to be the last mover—that is, to make the last great development in a specific market and enjoy years or even decades of monopoly profits.

At a time when we need an urgent national conversation about how schools and curriculum should address the environmental crisis, we're being told that the problems we need to focus on are teacher incompetence, government monopoly, and market competition. The reform agenda reflects the same private interests that are moving to shrink public space-interests that have no desire to raise questions that might encourage students to think critically about the roots of the environmental crisis, or to examine society's unsustainable distribution of wealth and power.

Since consumer tech is a $964 billion market globally, Google owns less than 0.24% of it—a far cry from relevance, let alone monopoly. Framing itself as just another tech company allows Google to escape all sorts of unwanted attention.

Monopolies, contrary to early expectations, prosper online, where winner-take-all markets emerge partly as a consequence of Metcalfe’s law, which says that the value of a network increases exponentially by the number of connections or users:

seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

Monopolists, by contrast, disguise their monopoly by framing their market as the union of several large markets:

the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see? We’ve discussed these

Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

The same push toward polarization playing out across the global economy will also exacerbate inequality within the AI superpowers. AI’s natural affinity for monopolies will bring winner-take-all economics to dozens more industries, and the technology’s skill biases will generate a bifurcated job market that squeezes out the middle class. The “great decoupling” of productivity and wages has already created a tear between the 1 percent and the 99 percent. Left to its own devices, artificial intelligence, I worry, will take this tear and rip it wide open.

AI will bring that same monopolistic tendency to dozens of industries, eroding the competitive mechanisms of markets in the process. We could see the rapid emergence of a new corporate oligarchy, a class of AI-powered industry champions whose data edge over the competition feeds on itself until they are entirely untouchable. American antitrust laws are often difficult to enforce in this situation, because of the requirement in U.S. law that plaintiffs prove the monopoly is actually harming consumers. AI monopolists, by contrast, would likely be delivering better and better services at cheaper prices to consumers, a move made possible by the incredible productivity and efficiency gains of the technology.

this is not just the normal churn of capitalism’s creative destruction, a process that has previously helped lead to a new equilibrium of more jobs, higher wages, and a better quality of life for all. The free market is supposed to be self-correcting, but these self-correcting mechanisms break down in an economy driven by artificial intelligence. Low-cost labor provides no edge over machines, and data-driven monopolies are forever self-reinforcing.

A central thesis of chapters 2 and 3 is that market failures—and the failure of government to circumscribe them—play a key role in explaining inequality in America. At the top there are rents (such as monopoly rents); at the bottom there is underinvestment in human capital. Hidden subsidies that distort the market and rules of the game that give an upper hand to those at the top have compounded the problems.

As surveillance capitalism migrates from Silicon Valley to a range of other firms and sectors, we gradually find ourselves in a world of no escape, “cornered” by converging, overlapping, and relentlessly expanding dispossession operations. It is important to say—and we will revisit this theme more than once—that regulatory interventions designed to constrain Google’s monopoly practices are likely to have little effect on the fundamental operations of this market form. New supply routes are continuously discovered, opened, and secured. Dispossession activities are compelled to circumvent every obstacle and will continue to do so, short of a genuine existential threat.

Looting is a natural response to the unnatural and inhuman society of commodity abundance. It instantly undermines the commodity as such, and it also exposes what the commodity ultimately implies: the army, the police and the other specialized detachments of the state's monopoly of armed violence. What is a policeman? He is the active servant of the commodity, the man in complete submission to the commodity, whose job it is to ensure that a given product of human labor remains a commodity, with the magical property of having to be paid for, instead of becoming a mere refrigerator or rifle — a passive, inanimate object, subject to anyone who comes along to make use of it. In rejecting the humiliation of being subject to police, the blacks are at the same time rejecting the humiliation of being subject to commodities. The Watts youth, having no future in market terms, grasped another quality of the present, and that quality was so incontestable and irresistible that it drew in the whole population — women, children, and even sociologists who happened to be on the scene. Bobbi Hollon, a young black sociologist of the neighborhood, had this to say to the Herald Tribune in October: 'Before, people were ashamed to say they came from Watts. They'd mumble it. Now they say it with pride. Boys who used to go around with their shirts open to the waist, and who'd have cut you to pieces in half a second, showed up here every morning at seven o'clock to organize the distribution of food. Of course, it's no use pretending that food wasn't looted.... All that Christian blah has been used too long against blacks. These people could loot for ten years and they wouldn't get back half the money those stores have stolen from them over all these years.... Me, I'm only a little black girl.' Bobbi Hollon, who has sworn never to wash off the blood that splashed on her sandals during the rioting, adds: 'Now the whole world is watching Watts.

What happened in the nineteen-eighties was something quite different, pressed upon governments from two quite distinct directions. In the first place, accelerating developments in technology—notably in telecommunications and the financial markets—were undermining the old ‘natural’ monopolies. If governments could no longer harness the airwaves, or the movement of money, for their own exclusive use, it made little sense for them to ‘own’ them. There remained a powerful political or social case for the state retaining part of a given sector—a public television channel, say, or the post office; but competition was now unavoidable.

It would be pretty easy to write a better word processor than Microsoft Word, for example, but Microsoft, within the castle of their operating system monopoly, probably wouldn’t even notice if you did. The place to fight design wars is in new markets, where no one has yet managed to establish any fortifications. That’s where you can win

But the smaller profit margins, plus the lure of easier money to be made by producing more lucrative items, drove some of these manufacturers to quit making older cheap drugs, thereby handing near monopolies to those who remained in the market.

By 1922, Sweden was the leading exporter of matches, and Swedish Match Corporation made two-thirds of all matches used in the world.11 Matches were Sweden’s pride, and its most important export. In the heady US markets, safety matches were the ideal new investment, and Ivar Kreuger was the perfect messenger. Matches, like cars and radio, were tangible products. They used new technology, and could be exported throughout the world. Antitrust regulators had declared monopolies illegal at home, but, by investing in Swedish Match, Americans could earn profits from a monopoly abroad. Ivar’s sales pitch was compelling. An investor who heard him talk about Swedish Match for more than a few minutes invariably would pull out a checkbook. Nearly every passenger on Berengaria used Swedish matches, and many would have heard of Swedish Match Corporation. By the time Ivar’s henchmen briefed the passengers, they also would have known that Ivar controlled Swedish Match, and that his grand postwar plans were to establish a global match monopoly. By all appearances, he was well on the way.

It is one of the curiosities of Communist reformers that they always set out with the quixotic goal of reforming some aspects of their system while keeping others unaffected—introducing market-oriented incentives while maintaining central planning controls, or allowing greater freedom of expression while retaining the Party’s monopoly of truth.

Before 1922, the Spanish government had controlled the match monopoly, but still permitted Swedish Match to export matches to Spain. Then the government shifted course and signed a fifteen-year lease with a Spanish company, Compañia Arrendataria de Fosforos (CAF). It also began enforcing a decree that match interests could only be held by Spanish citizens or companies owned by Spanish citizens. From that time on, CAF would control all match production and sales within Spain. As a foreigner, Ivar was not permitted to own shares of CAF. But Ivar refused to be locked out of the Spanish market. He began buying shares of CAF through Spanish intermediaries, and even created a front company in Spain, Sociedad Financiera de la Industria Española (SAFIE).5 The share purchases were time-consuming and expensive, and even by 1924 he was a long way from taking control of the Spanish match market. SAFIE gave Ivar a presence, so that Swedish Match could make some money from exports to Spain, but a Spanish match monopoly seemed unlikely anytime soon. Like Germany and Italy, Spain would have to wait.

Markets can be dominated by a few firms, charging exorbitant prices and blocking the entry of more efficient rivals and new technologies. Markets, left to their own devices, can cease to be inclusive, becoming increasingly dominated by the economically and politically powerful. Inclusive economic institutions require not just markets, but inclusive markets that create a level playing field and economic opportunities for the majority of the people. Widespread monopoly, backed by the political power of the elite, contradicts this. But the reaction to the monopoly trusts also illustrates that when political institutions are inclusive, they create a countervailing force against movements away from inclusive markets. This is the virtuous circle in action. Inclusive economic institutions provide foundations upon which inclusive political institutions can flourish, while inclusive political institutions restrict deviations away from inclusive economic institutions.

Several forces can widen a company’s moat: a strong brand identity (think of Harley Davidson, whose buyers tattoo the company’s logo onto their bodies); a monopoly or near-monopoly on the market; economies of scale, or the ability to supply huge amounts of goods or services cheaply (consider Gillette, which churns out razor blades by the billion); a unique intangible asset (think of Coca-Cola, whose secret formula for flavored syrup has no real physical value but maintains a priceless hold on consumers); a resistance to substitution (most businesses have no alternative to electricity, so utility companies are unlikely to be supplanted any time soon).5 The company is a marathoner, not a sprinter. By looking back at the income statements, you can see whether revenues and net earnings have grown smoothly and steadily over the previous 10 years.

Several forces can widen a company’s moat: a strong brand identity (think of Harley Davidson, whose buyers tattoo the company’s logo onto their bodies); a monopoly or near-monopoly on the market; economies of scale, or the ability to supply huge amounts of goods or services cheaply (consider Gillette, which churns out razor blades by the billion); a unique intangible asset (think of Coca-Cola, whose secret formula for flavored syrup has no real physical value but maintains a priceless hold on consumers); a resistance to substitution (most businesses have no alternative to electricity, so utility companies are unlikely to be supplanted any time soon). The company is a marathoner, not a sprinter. By looking back at the income statements, you can see whether revenues and net earnings have grown smoothly and steadily over the previous 10 years.

It is economism to allow material gain to obscure the danger that we may forfeit liberty, variety, and justice and that the concentration of power may grow, and it is also economism to forget that people do not live by cheaper vacuum cleaners alone but by other and higher things which may wither in the shadows of giant industries and monopolies.

The battle for world domination is on. If Google’s Larry Page worries about any competitor, it is probably Mark Zuckerberg. While Facebook began as a way to make social networks visible and to ease communication between them, it is now—like Google—in the surveillance marketing business. Facebook and Google sell the data you give them to marketers. Google gets the data through your search history. Facebook gets it through your social media posts. The scale of the Facebook ecosystem—which includes WhatsApp, Messenger, and Instagram—is astonishing: 1.6 billion users of Facebook itself; 1 billion on WhatsApp; 900 million on Messenger; 400 million on Instagram. Facebook controls more than 75 percent of US mobile social media platforms. Under any normal antitrust regime this would be considered a monopoly. Like Google, Facebook has taken to presenting itself as a public service. “Don’t be evil.

Seven months later, Enron filed for bankruptcy. The golden goose of corporate capitalism collapsed amid charges of ‘greed, bribery, corruption, deceit, parasitism, speculation, insider trading, scams, nepotism, tax avoidance, environmental destruction, human rights abuses, exploitation, theft of workers’ entitlements, job losses, use of state machinery against workers and Indigenous peoples, cosy relationships with government, and monopoly manipulation of prices and markets’.

Edison epitomized the new entrepreneur at the heart of a brand-new phase in the development of market societies: an inventor who innovated in order to create monopoly power for himself – not so much for the riches that it provided, but for its own sake; for the sheer glory and the sheer power of it all. He was an entrepreneur who inspired, in equal measure, incredible loyalty from his overworked staff and loathing from his adversaries. He was a friend of Henry Ford, who also famously played a key role in bringing machinery into the lives of ordinary people while, at the same time, turning workers into the nearest a person can come to a machine.