THE NEW GILDED AGE
WHERE ARE THE TRUST BUSTERS WHEN YOU NEED THEM
If you think that the billionaires of today are bad for society, you might want to take a look at the history books and see how the robber barons of the Gilded Age were even worse. Or were they?
The robber barons were the wealthy industrialists who dominated whole industries like railroads, banking, oil, and steel in the late nineteenth and early twentieth centuries. They amassed huge fortunes by exploiting workers, consumers, and the environment, and by using their power and influence to manipulate politics and policy. They also flaunted their wealth by building lavish mansions, collecting art and jewels, and throwing extravagant parties.
The billionaires of today are the wealthy tech moguls who dominate whole industries like e-commerce, social media, search, and advertising in the late twentieth and early twenty-first centuries. They amassed huge fortunes by innovating technology, disrupting markets, and collecting data, and by using their power and influence to lobby politicians and regulators. They also flaunt their wealth by building lavish mansions, collecting art and jewels, and throwing extravagant parties.
So far, so similar. But there are also some differences between the two groups. The billionaires of today are more involved in technology and innovation than the robber barons of the Gilded Age, who mostly relied on natural resources and transportation. The billionaires of today also face more competition and regulation from other countries and governments than the robber barons of the Gilded Age, who had more control over the political system. The billionaires of today also have more opportunities and platforms to share their views and philanthropy with the public than the robber barons of the Gilded Age, who were more secretive and isolated from society.
But are these differences enough to make the billionaires of today better than the robber barons of the Gilded Age? Not necessarily. The billionaires of today still have a lot of monopoly power that can harm society in various ways. They can reduce consumer choice, innovation, and quality by eliminating competition and creating barriers to entry for new entrants. They can influence politics and policy by using their wealth and power to lobby, donate, or bribe politicians and regulators. They can distort information and communication by controlling the media, the internet, and the platforms that people use to access news, entertainment, and social networks. They can threaten civil liberties and human rights by collecting and exploiting personal data, surveilling and tracking users, and cooperating with authoritarian governments or private actors.
So where are the trust busters when you need them? The trust busters were the politicians and reformers who challenged the monopoly power of the robber barons in the Gilded Age. They passed laws and regulations that prohibited or restricted mergers, acquisitions, collusion, price-fixing, predatory pricing, tying agreements, and other anticompetitive practices that created or maintained monopoly power. They also broke up or divested some of the largest monopolies in the country, such as Standard Oil, Northern Securities, and American Tobacco.
The trust busters of today are still trying to catch up with the monopoly power of the billionaires. They have filed lawsuits against Google and Facebook for abusing their market power in search, advertising, and social media. They have launched investigations into Amazon, Apple, Google, and Facebook for affecting competition, innovation, privacy, and consumer welfare in various markets such as e-commerce, online platforms, digital advertising, and app stores. They have imposed fines and regulations on some of the US tech giants, such as Google, Apple, Amazon, and Facebook, for violating competition rules, requirements for data protection and transparency, and proposals for digital taxes and digital markets acts.
But will these actions be enough to curb the monopoly power of the billionaires? Or will they find new ways to evade or resist them? Only time will tell.
In conclusion, the billionaires of today have some similarities and differences with the robber barons of the Gilded Age. Both groups were successful industrialists who controlled whole industries during a time period of economic growth and inequality. Both groups were often accused of being monopolists who harmed society in various ways. But there are also some differences between the two groups. The billionaires of today are more involved in technology and innovation than the robber barons of the Gilded Age, who mostly relied on natural resources and transportation. The billionaires of today also face more competition and regulation from other countries and governments than the robber barons of the Gilded Age, who had more influence and power over the political system. The billionaires of today also have more opportunities and platforms to share their views and philanthropy with the public than the robber barons of the Gilded Age, who were more secretive and isolated from society.
So, are the new robber barons better than the old robber barons of the Gilded Age? That depends on your perspective, values, and goals. But one thing is clear: we need more trust busters to keep them in check. Where are they when you need them?
THE DEFT DIVE
A **monopolist** is an individual, group, or company that controls all of the market for a particular good or service⁵. Billionaires are not necessarily monopolists, but some of them may have gained their wealth from **monopoly power** or **crony connections** to government². For example, John Arnold is a billionaire who is funding a legal campaign against hospital monopolies¹. Some people argue that billionaires are a sign of economic failure and inequality², while others may admire their success and innovation. What do you think?
Bing, 6/26/2023
(1) https://www.investopedia.com/terms/m/monopolist.asp#:~:text=A%20monopolist%20is%20an%20individual%2C%20group%2C%20or%20company,favor%20monopolies%20since%20it%20gives%20them%20greater%20power.. https://www.investopedia.com/terms/m/monopolist.asp.
(2) Billionaires Are a Sign of Economic Failure - Inequality.org. https://inequality.org/research/billionaires-sign-econ-failure/.
(3) The Billionaire Funding a Battle Against Hospital Monopolies. https://www.wsj.com/articles/the-billionaire-funding-a-battle-against-hospital-monopolies-11654920006.
(4) COVID Vaccine Push Produced 9 New Billionaires, Nonprofit Says. https://www.newsweek.com/covid-vaccine-push-produced-9-new-billionaires-nonprofit-says-call-end-drug-monopolies-1593310.
(5) . https://bing.com/search?q=monopolist+definition.
(6) Monopolist Definition & Meaning - Merriam-Webster. https://www.merriam-webster.com/dictionary/monopolist.
Some of the billionaires that have been accused of being monopolists are:
- - **Jeff Bezos**, the founder and CEO of Amazon, who has faced criticism for his company's dominance in e-commerce, cloud computing, and online advertising¹.
- - **Mark Zuckerberg**, the founder and CEO of Facebook, who has been sued by the US government for allegedly acquiring and killing potential rivals like Instagram and WhatsApp¹.
- - **Sundar Pichai**, the CEO of Google and Alphabet, who has been charged by the US government for illegally protecting his company's monopoly over search and search advertising².
- - **Bill Gates**, the co-founder of Microsoft, who was once ruled by a federal judge to have violated antitrust laws by using his company's monopoly power to harm competitors and consumers⁴.
These are just some examples of billionaires who have been accused of being monopolists. There may be others who have faced similar allegations or criticisms. What do you think of these accusations?
Bing, 6/26/2023
(1) US tech giants accused of 'monopoly power' - BBC News. https://www.bbc.com/news/business-54443188.
(2) U.S. Accuses Google of Illegally Protecting Monopoly. https://www.nytimes.com/2020/10/20/technology/google-antitrust.html.
(3) Microsoft Ruled a Monopoly / Court finds firm abused its power - SFGATE. https://www.sfgate.com/news/article/Microsoft-Ruled-a-Monopoly-Court-finds-firm-2899336.php.
(4) Robber baron (industrialist) - Wikipedia. https://en.wikipedia.org/wiki/Robber_baron_%28industrialist%29.
(5) AOC Accuses Billionaires of Exploiting Workers, Paying Slave Wages. https://markets.businessinsider.com/news/stocks/aoc-accuses-billionaires-exploiting-workers-paying-slave-wages-2020-1-1028842799.
The billionaires of today have some similarities and differences with the robber barons of the Gilded Age. Both groups were successful industrialists who controlled whole industries like railroads, banking, oil, and steel during a time period of economic growth and inequality¹. Both groups were often accused of being monopolists who restricted production, raised prices, stole money and resources from the public, and used unethical and illegal practices to exploit workers and competitors¹². Both groups also flaunted their wealth by building magnificent mansions, collecting art and jewels, and throwing lavish parties³.
However, there are also some differences between the two groups. The billionaires of today are more involved in technology and innovation than the robber barons of the Gilded Age, who mostly relied on natural resources and transportation. The billionaires of today also face more competition and regulation from other countries and governments than the robber barons of the Gilded Age, who had more influence and power over the political system. The billionaires of today also have more opportunities and platforms to share their views and philanthropy with the public than the robber barons of the Gilded Age, who were more secretive and isolated from society.
Bing, 6/26/2023
(1) Robber Barons: Definition, Significance, Criticism, and Examples. https://www.investopedia.com/terms/r/robberbarons.asp.
(2) America's Gilded Age: Robber Barons and Captains of Industry. https://online.maryville.edu/business-degrees/americas-gilded-age/.
(3) How Robber Barons Flaunted Their Money During the Gilded Age. https://www.history.com/news/robber-barons-gilded-age-wealth.
(4) Who Were the Gilded Age Robber Barons? - History Defined. https://www.historydefined.net/who-were-the-gilded-age-robber-barons/.
The monopolies of the Gilded Age were dealt with by the political system in different ways, depending on the administration and the public opinion. Some of the ways that the monopolies were challenged were:
- - The Sherman Antitrust Act of 1890, which was the first federal law to prohibit trusts and monopolies that restrained trade and competition. However, the law was vague and weakly enforced, and it was sometimes used against labor unions instead of corporations³.
- - The Interstate Commerce Act of 1887, which created a federal agency to regulate railroads and prevent unfair practices such as price discrimination and pooling. The act was a response to the demands of farmers and shippers who suffered from high freight rates and lack of competition².
- - The trust-busting efforts of President Theodore Roosevelt, who used his executive power and public support to break up some of the largest monopolies in the country, such as Standard Oil, Northern Securities, and American Tobacco. Roosevelt believed that some trusts were beneficial and others were harmful, and he sought to regulate them rather than eliminate them⁴.
- - The Clayton Antitrust Act of 1914, which was passed during the Progressive Era under President Woodrow Wilson. The act strengthened the Sherman Antitrust Act by clarifying what constituted illegal practices, such as price-fixing, interlocking directorates, and tying agreements. The act also exempted labor unions from antitrust prosecution and created the Federal Trade Commission to enforce antitrust laws⁵.
The monopolies of today are being treated differently by the political system, depending on the industry and the jurisdiction. Some of the ways that the monopolies are being challenged are:
- - The antitrust lawsuits filed by the US Department of Justice and several state attorneys general against Google and Facebook, accusing them of abusing their market power in search, advertising, and social media. The lawsuits seek to stop the companies from engaging in anticompetitive behavior and possibly force them to divest some of their assets or businesses¹².
- - The antitrust investigations conducted by the US Congress and various regulatory agencies into the practices of Amazon, Apple, Google, and Facebook. The investigations aim to examine how these companies affect competition, innovation, privacy, and consumer welfare in various markets such as e-commerce, online platforms, digital advertising, and app stores¹².
- - The antitrust regulations imposed by the European Union and other countries on some of the US tech giants, such as Google, Apple, Amazon, and Facebook. These regulations include fines for violating competition rules, requirements for data protection and transparency, and proposals for digital taxes and digital markets acts¹².
Bing, 6/26/2023
(1) Trust (business) - Wikipedia. https://en.wikipedia.org/wiki/Trust_%28business%29.
(2) How Gilded Age Corruption Led to the Progressive Era. https://www.history.com/news/gilded-age-progressive-era-reforms.
(3) Politics and Antitrust: Lessons from the Gilded Age. https://corpgov.law.harvard.edu/2019/01/02/politics-and-antitrust-lessons-from-the-gilded-age/.
(4) Antitrust: Taking on Monopoly Power from the Gilded Age to the Digital .... https://books.google.com/books/about/Antitrust.html?id=e00TEAAAQBAJ.
(5) Theodore Roosevelt and the Trusts | Gilder Lehrman Institute of .... https://www.gilderlehrman.org/history-resources/lesson-plan/theodore-roosevelt-and-trusts.
Monopolies can affect democracy in various ways, depending on the industry, the market, and the political system. Some of the ways that monopolies can harm democracy are:
- - Monopolies can reduce consumer choice, innovation, and quality by eliminating competition and creating barriers to entry for new entrants. This can lead to higher prices, lower wages, and less variety for consumers, who may have little voice or power to influence the market¹².
- - Monopolies can influence politics and policy by using their wealth and power to lobby, donate, or bribe politicians and regulators. This can result in laws and regulations that favor their interests and protect their dominance, while undermining the public interest and the common good¹²³.
- - Monopolies can distort information and communication by controlling the media, the internet, and the platforms that people use to access news, entertainment, and social networks. This can affect how people form opinions, express views, and participate in civic life. It can also enable censorship, propaganda, and manipulation of public opinion¹²⁴.
- - Monopolies can threaten civil liberties and human rights by collecting and exploiting personal data, surveilling and tracking users, and cooperating with authoritarian governments or private actors. This can violate people's privacy, security, and dignity, and expose them to discrimination, harassment, or violence¹²⁴.
These are some of the ways that monopolies can affect democracy. Do you have any questions or comments about this topic?
Bing, 6/26/2023
(1) The regulation of tech monopolies will decide the fate of Western .... https://www.businessinsider.com/regulation-of-big-tech-decide-fate-of-western-democracies-2021-2.
(2) A history of America’s fight against monopolies - The Washington Post. https://www.washingtonpost.com/outlook/a-history-of-americas-fight-against-monopolies/2019/12/06/ce34b360-da3c-11e9-ac63-3016711543fe_story.html.
(3) Monopoly Versus Democracy in the New Gilded Age | Foreign Affairs. https://www.foreignaffairs.com/articles/united-states/2020-12-08/monopoly-versus-democracy.
(4) Monopolies Threaten Not Just Our Economy, But Our Liberty, Too.. https://washingtonmonthly.com/2020/10/25/monopolies-threaten-not-just-our-economy-but-our-liberty-too/.
(5) We must break corporate monopolies to save democracy. https://www.opendemocracy.net/en/oureconomy/corporate-monopolies-are-threat-to-democracy-public-interest/.
There are different ways to prevent or limit monopoly power in a democratic society, depending on the type and degree of monopoly, the market structure, and the social and economic goals. Some of the ways that have been used or proposed are:
- - Antitrust laws and regulations that prohibit or restrict mergers, acquisitions, collusion, price-fixing, predatory pricing, tying agreements, and other anticompetitive practices that create or maintain monopoly power. These laws and regulations are enforced by government agencies such as the Federal Trade Commission and the Department of Justice in the US, or by supranational bodies such as the European Commission in the EU²³.
- - Price capping or regulation that limits the amount that monopolies can charge for their products or services, especially for natural monopolies or public utilities that provide essential goods or services such as water, electricity, gas, or telecommunications. These price caps are set by regulatory bodies such as OFGEM, OFWAT, or ORR in the UK, or by state commissions or public service commissions in the US¹².
- - Breaking up or divesting monopolies that have become too large, dominant, or harmful for the market and society. This can involve splitting up a single company into smaller and more competitive units, or forcing a company to sell off some of its assets or businesses to reduce its market share or influence. For example, Standard Oil was broken up into 34 separate companies in 1911 by the US Supreme Court under the Sherman Antitrust Act²⁴.
- - Public ownership or nationalization of monopolies that are deemed to be of strategic importance or public interest, such as railways, postal services, health care, or banking. This can involve taking over a private company by the government or a public authority, or creating a new public enterprise to provide a good or service. The aim is to ensure that the monopoly serves the public interest rather than private profit²⁵.
- - Encouraging competition and innovation by lowering barriers to entry and exit for new entrants and existing firms, providing subsidies or incentives for research and development, promoting consumer awareness and education, and fostering a culture of entrepreneurship and creativity. This can help create more diverse and dynamic markets that challenge monopoly power and offer more choices and opportunities for consumers and producers¹².
These are some of the ways to prevent or limit monopoly power in a democratic society. Do you have any questions or comments about these methods?
Bing, 6/26/2023
(1) Regulation of monopoly - Economics Help. https://www.economicshelp.org/microessays/markets/regulation-monopoly/.
(2) Monopolization Defined | Federal Trade Commission. https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/single-firm-conduct/monopolization-defined.
(3) Monopoly - Economics Help. https://www.economicshelp.org/microessays/markets/monopoly/.
(4) How to control monopoly in economy? - Accountlearning. https://accountlearning.com/how-to-control-monopoly-in-economy/.
(5) Top 3 Methods of Controlling Monopoly (With Diagram) - Economics Discussion. https://www.economicsdiscussion.net/monopoly/top-3-methods-of-controlling-monopoly-with-diagram/7294.
The benefits and drawbacks of billionaire involvement in public education may depend on the perspective, values, and goals of different stakeholders, such as students, parents, teachers, administrators, policymakers, and researchers. Some of the possible benefits and drawbacks are:
- - Benefits: Billionaire involvement may provide more resources, innovation, diversity, and accountability for public education. For example, billionaires may fund or support initiatives or organizations that offer more choices, quality, efficiency, or equity for students and parents, such as charter schools, vouchers, online courses, personalized learning platforms, or educational technology¹³. Billionaires may also fund or support initiatives or organizations that promote research, evaluation, advocacy, or reform for public education, such as think tanks, foundations, networks, associations, or political campaigns that lobby or influence policymakers and educators on education issues¹² .
- - Drawbacks: Billionaire involvement may create more problems, inequalities, conflicts, and distortions for public education. For example, billionaires may fund or influence media organizations that promote or criticize certain policies or reforms in public education, such as charter schools, vouchers, standardized testing, teacher evaluation, curriculum standards, and accountability. These media organizations may shape public opinion and debate on education issues in ways that favor their interests and agendas¹². Billionaires may also create or support private education alternatives or innovations that compete or collaborate with public education in ways that undermine public education by diverting resources, students, or teachers away from it¹³ .
Bing, 6/26/2023
(1) Wealth Inequality And Higher Education: How Billionaires Could ... - Forbes. https://www.forbes.com/sites/wesleywhistle/2020/12/31/wealth-inequality-and-higher-education-how-billionaires-could-make-a-difference/.
(2) How Bill Gates and fellow billionaires can actually help public education. https://www.washingtonpost.com/news/answer-sheet/wp/2014/04/21/how-bill-gates-and-fellow-billionaires-can-actually-help-public-education/.
(3) When Billionaires Become Educational Experts | AAUP. https://www.aaup.org/article/when-billionaires-become-educational-experts.
Ensuring that billionaire involvement is transparent and accountable to the public may require different strategies and mechanisms, depending on the type and level of involvement, the context and stakeholders, and the goals and outcomes. Some of the possible ways to ensure transparency and accountability are:
- - Public access to information: This involves making information about billionaire involvement in public education available, accessible, and understandable to the public, such as the sources, amounts, and recipients of funding or investment, the objectives and activities of initiatives or organizations, and the results and impacts of policies or reforms. Public access to information can enable learning, monitoring, evaluation, and feedback by various education stakeholders⁵.
- - Public participation and consultation: This involves engaging and involving various education stakeholders, especially those who are directly affected by billionaire involvement in public education, such as students, parents, teachers, administrators, and communities. Public participation and consultation can ensure that billionaire involvement is responsive, inclusive, and respectful of the needs, interests, and values of different groups²³.
- - Public oversight and regulation: This involves establishing and enforcing rules and standards for billionaire involvement in public education, such as legal frameworks, ethical codes, reporting requirements, auditing procedures, or sanctions for non-compliance. Public oversight and regulation can ensure that billionaire involvement is accountable, responsible, and aligned with the public interest¹⁴.
- - Public dialogue and debate: This involves creating and facilitating spaces and platforms for open and constructive dialogue and debate among various education stakeholders, including billionaires themselves, about the benefits and drawbacks of billionaire involvement in public education. Public dialogue and debate can ensure that billionaire involvement is informed, balanced, and respectful of diverse perspectives²³.
Bing, 6/26/2023
(1) 10 ways to promote transparency and accountability in education. https://www.iiep.unesco.org/en/10-ways-promote-transparency-and-accountability-education-4307.
(2) Improving accountability in education: the importance of structured .... https://link.springer.com/article/10.1007/s12564-019-09599-9.
(3) The Effect of Public Participation, Transparency, and Accountability on .... https://www.researchgate.net/publication/320084558_The_Effect_of_Public_Participation_Transparency_and_Accountability_on_the_Efficiency_of_the_Distribution_of_the_School_Operational_Support_Funds_BOS_in_Tebing_Tinggi_City_Case_Study_of_Taman_Siswa_Col.
(4) Accountability, Transparency, Participation, and Inclusion: A New .... https://carnegieendowment.org/2014/10/20/accountability-transparency-participation-and-inclusion-new-development-consensus-pub-56968.
(5) Full article: The Core Roles of Transparency and Accountability in the .... https://www.tandfonline.com/doi/full/10.1080/23288604.2018.1465880.
