Antimonopoly is Anti-Capitalist?

[charles mueller <cmueller@metrolink.net>]

          I was struck by the characterization below of antitrust as
  "anti-capitalist"--but was confident that numerous members would promptly
  correct that inaccuracy.  A poster refers to antitrust as "draconian govt.
  enforced anti-capitalist measures, like the socialist 'anti dog-eat-dog'
  bill supported by competitors to a trans-continental railroad in Ayn Rand's
  'Atlas Shrugged.'"
  
          Antimonopoly policy is "anti-capitalist?"  For that to be true, such
  a national policy would have to be hostile to capitalism in its motivation,
  effects, or both.  Precisely the opposite is the case.  The original U.S.
  antitrust law, for example--the Sherman Act of 1890--was passed by a
  Republican Congress at the urging of a Republican senator.  "Sir, now the
  people of the United States, as well as of other countries," Senator Sherman
  told his fellow conservatives, "are feeling the power and grasp of these
  combinations, and are demanding of every legislature and of Congress a
  remedy of this evil.... You must heed their appeal or be ready for the
  SOCIALIST, the communist, and the nihilist.  Society is now disturbed by
  forces never felt before."  The intent of the lawmakers, in other words, was
  plainly not to harm capitalism but to preserve it; the enemy of antitrust
  was collectivism in its various forms. 
  
          And that has just as clearly been its effect:  Among the world's 200
  countries-- as I've emphasized before--those with high per-capita incomes
  have the most robust competition, the poorest the most monopoly.  Adam
  Smith, the first modern economist, spoke often of the "wretched spirit of
  monopoly"--its "mean rapacity, [its] monopolizing spirit"--as an enemy of
  healthy capitalism rather than a necessary part of it.  Smith, capitalism's
  original icon, an "anti-capitalist?"  Capitalism has no greater friend than
  antitrust.  Kill the latter and, in a democratic society, you've killed the
  former.  Collectivists everywhere are quite clear about this.
  
          In political terms, monopoly is routinely applauded by both the
  left- and right- wings of the spectrum.  When the U.S. Congress holds
  hearings on antitrust, those who oppose it are routinely led by, e.g., John
  Kenneth Galbraith on the left, who argues that all significant U.S.
  industries should be monopolized--and PUBLICLY owned.  (See his 'Economics
  and the Public Purpose.')   On the right, Milton Friedman and his followers
  affirm that, yes, all important American industries should be under the
  thumb of a single monopolist--a very PRIVATE capitalist, subject to no
  public regulation or other government meddling in its affairs.  
  
          Antimonopoly policy?  No political or intellectual constituency.
  Advocates of the left think monopoly is great because it supports their case
  for public ownership (a la Galbraith) by portraying capitalism and
  monopoly--systematic larceny--as synonymous.  If a country must accept
  nationwide monopoly as the inevitatable price of a free-market economy, then
  socialism has a chance to win popular support. Antitrust is (correctly) seen
  by Galbraith et al, then, as an enemy precisely because it's the ingredient
  that makes capitalism socially attractive, which is to say, makes it
  competitive--and thus FAIR, efficient, and innovative. 
  
          Socialist (collectivist) opposition to antimonopoly policy rests, in
  other words, on the realpolitik notion of embourgeoisment--the idea that, if
  the peasants and proletariat are allowed to actually EXPERIENCE first-hand
  the real-world benefits of free markets, they'll love owning their own land
  and shops and will thus lose interest in the idea of being herded together
  on collectives of various sorts, whether in the fields or the factories.
  Intellectuals of the right, on the other hand, believe that monopoly is both
  wonderful and the natural order of things--a splendid tool for continuously
  concentrating income/wealth into the hands of the deserving few. 
  
          No nation, to my knowledge, has and implements an effective
  antimonopoly policy.  Capitalism won the war against socialism--a sure-fire
  prescription for poverty in every country that has been beguiled into trying
  it--but has yet to learn how to deal with (as I've said before) nerdy twits
  like Bill Gates and their platoons of over-paid monopoly lawyers.  Monopoly
  on the left, monopoly on the right.  Real prosperity is capitalism without
  monopoly--the latter born of, as Adam Smith reminded us,  a "mean rapacity"
  and a "wretched spirit."  Any honest government could purge that
  institutionalized, organized theft from its borders in a trice.  
  
          Charles Mueller, Editor
          ANTITRUST LAW & ECONOMICS REVIEW
          http://webpages.metrolink.net/~cmueller
  
                                             
                                                   ***************
  
  
  At 09:16 PM 11/18/97 -0500, you wrote:
  >>Paul Ferzoco (by way of John N Bryan) wrote:
  >>> It's their overwhelming plan to FORCE us to use their products that
  >>> piss's me off. Those of us who've been in the industry for 30+ years are
  >>
  >>Hmmm, could someone elaborate on the use of 'force' by MS to use their
  >>products?
  >
  >"FORCE" may have been too strong, too broad a word.  However, if the
  >only choice available is the same company that caused there to be only
  >one choice, then perhaps there is an indirect forcing.
  >
  >
  >>
  >>I still think there is time for public market forces to foster a
  >>groundswell of support for
  >>a competitive product without having to resort to draconian govt. enforced
  >>anti-capitalist
  >>measures, like the socialist 'anti dog-eat-dog' bill supported by
  >>competitors to a trans-
  >>continental railroad in Ayn Rand's "Atlas Shrugged".
  >
  >If there are allowed to be competitive products.  If the environment
  >is such that competitive companies and products are, through no fault
  >of their own, prevented from being made available to the consumer to
  >choose, then essentially there are no competitive products. It does
  >me no good for there to be a competitive product if I never have
  >the opportunity to choose it. Generally speaking.
  >
  >I trust you are not implying that the DOJ, by their recent actions
  >with respect to Microsoft's licensing practices as they relate to
  >the 1994/5 consent decree, are taking draconian measures. To examine
  >things of this nature is hardly unreasonably harsh, and would seem
  >to be part of the normal part of their role. In as much as their
  >actions are defined by law, etc., I don't think they are draconian.
  >
  >So far as "enforced anti-capitalist measures" are concerned, yes,
  >they are in effect anti-capitalist.  Like other dynamic forces,
  >capitalism can be directed and at times curbed to prevent it
  >going out of control.  I don't think the DOJ has reacted none too
  >capriciously in this case.  Quite the contrary, I think they have
  >by in large been too conservative where Microsoft's business
  >practices are concerned.  I am reminded of a nuclear power plant.
  >You have a sustained nuclear fission reaction going, a very poerful
  >force, and it is kept from going out of control by certain systems,
  >(coolant, control rods, etc.).  Without the existence of some
  >admittedly anti-capitalist bounds, it might be possible to have
  >a capitalistic Chernobyl on our hands.  The damage from such
  >an end is far worse than the "damage" to business, the economy,
  >and Capitalism caused by the the anti-capitalist measures.
  >
  >John B
  >
  >
  >--
  >"You are not free because you CAN choose, only if you DO choose."
  >"Everything you are is the decisions you make. If you allow circumstances
  >to make them for you, then what you are becomes very easy to estimate."
  >--
  >
  >
  >