Concentration Without Consolidation

HRC says that too much economic power has been concentrated into corporations. She used the term “concentration” because the TBTF corporate body does not want to admit that consolidation of industry and markets is really a bad thing. We just need to control for the effects, like raising the marginal tax rate, which can then be spent on whatever congress sees fit to spend it on. Power, then, is still concentrated, and the public good is generally considered to be a function of subsidizing the rich to create jobs, and deconsolidation is considered to be a job killer because it tends to distribute profits to labor (referred to by classical economics as the naturally declining rate of profit).

The “notion” that rising profits create jobs is a disconfirmed hypothesis, and referring to the problem as “concentration” begs the question. HRC says that trickle-down economics does not work but does not identify it with consolidation of industry and markets, which is considered by the best and the brightest Ivy Leaguers to be the best way to improve the efficiency of markets.

HRC subscribes to the notion that suggests bigger is better. It indicates success in the marketplace, gaining market share. However, if the share is gained by M & A, it is because the wealth is too consolidated, having the measurable effect of concentrated power, which is antithetical to the notion of free-market economics in which power is concentrated in individuals without consolidation.

(See other articles by griffithlighton on deconsolidation of the risk.)


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
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