Tag: "barry lynn"

Posted June 15, 2014 by christopher

The Supreme Court unanimously rejected efficiency as an excuse for industrial dictatorship when it ordered the breakup of Standard Oil despite the fact that the company had lowered the cost of a gallon of kerosene by more than half. The Supreme Court unanimously rejected the efficiency argument again in 1935 when it ruled President Roosevelt's National Industrial Recovery Act unconstitutional. In every case, the American people embraced not efficiency but freedom and moved to protect that freedom through the erection of intricate systems of checks and balances designed to scatter power.

Posted June 15, 2014 by christopher

As both AT&T and Comcast seek to increase their market power by buying rivals instead of competing, Barry Lynn reminds us of our history of fighting such consolidated power. From Cornered: The New Monopoly Capitalism and the Economics of Destruction.

In the modern era in the United States, efficiency was a favorite defense by industrial autocrats like John D. Rockefeller and financial autocrats like J.P. Morgan of their used of corporate power to arbitrarily determine particularly political economic outcomes. The progressive elite, meanwhile, later turned efficiency into a veritable religion.

That's why the American people learned long ago to reject efficiency as either a goal or a means to public or private governance, and why we consistently rejected it for the first two hundred years of our nation. We understood that efficiency was a code word for top-down autocratic rule by the lords and the private corporate estates or the "public" state. Hence we rejected efficiency in the Declaration of Independence and again in the Constitution. We rejected efficiency when we wrote the Sherman Antitrust Act, then reiterated our rejection time and again in our other antimonopoly laws.

The Supreme Court unanimously rejected efficiency as an excuse for industrial dictatorship when it ordered the breakup of Standard Oil despite the fact that the company had lowered the cost of a gallon of kerosene by more than half. The Supreme Court unanimously rejected the efficiency argument again in 1935 when it ruled President Roosevelt's National Industrial Recovery Act unconstitutional. In every case, the American people embraced not efficiency but freedom and moved to protect that freedom through the erection of intricate systems of checks and balances designed to scatter power.

Posted June 8, 2014 by christopher

As I was glancing back through my notes in the margins of my copy of Barry Lynn's Cornered: The New Monopoly Capitalism and The Economics of Destruction, I stumbled across the beginning of a discussion of common carriage. Good timing given the FCC wrestling with whether to apply common carrier regulations on Internet access.

Which brings us to a set of laws that are closely related to price discrimination: our common carriage laws. These hold that certain businesses--especially those with a real or a de facto license to provide a vital service to the general public--must be kept open to all potential customers on a fair basis. The provider of the service cannot discriminate among users, either by denying service to some and not to others or by charging different people different prices. The ancient Romans applied the concept to inns and ships. The English applied it to cabs, ferries, toll roads, mills, bakeries, surgery, tailoring, and breweries. In the United States, in the nineteenth century, we extended it to steamboats, telegraphy, and eventually railroads.

Posted February 13, 2014 by christopher

It is hard to say just how bad of an idea it is for us to allow Comcast to buy Time Warner Cable. This is not just about consumers having to pay more, which they do every time we allow massive consolidation, but about access to information.

I can't help but think back to our conversation with Barry Lynn on monopoly a few weeks ago. People get so focused on consumer prices and a narrow view of competition that they miss important impacts of consolidation.

One impact is moving Comcast from the seventh biggest DC lobbyist to the fourth.

This consolidation is a recognition that the private sector simply will not provide meaningful competition for Internet access. Communities need to recognize what a do-nothing approach means: relying on a distant cable monopoly for the most important services of the 21st century.

If I had to guess what will happen - Comcast will buy Time Warner Cable but have to sell off some pieces to get approval. Comcast will grow larger and more powerful, making future mergers even more difficult to stop despite more and more evidence that these firms are strangling our economy. We can stop it - but will we? Specifically, will we force our representatives in DC to stop it?

Stay tuned to the organizations that are covering it well - Free Press, Karl Bode, Public Knowledge, Common Cause, and many others.

Posted January 28, 2014 by christopher

When we think about the threat of monopoly, we almost always focus on how monopolies can raise prices beyond what is reasonable. But there are many threats from monopolies and many are much more dangerous to a free society than higher prices. This week, monopoly expert Barry Lynn joins us for the Community Broadband Bits podcast.

Lynn is a senior fellow at the New America Foundation and author of a book that I recommend very highly - Cornered: The New Monopoly Capitalism and the Economics of Destruction. Buy it a local bookstore or from an independent bookstore online.

We discuss whether companies like Comcast are correctly termed "monopoly" when they face some nominal competition and what the threat from monopoly is. Barry explains how both political parties have encouraged centralization even as both parties have had vocal opponents of such policies. And finally, we discuss how policies dealing with monopoly now are fundamentally different than they were for the vast majority of American history.

This is a great discussion - one of the most important we have done. You can read a transcript of our discussion here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Haggard Beat for the music, licensed using Creative Commons.

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