Great Piece Matt, in short, all the big liners who control 80% have no incentive to solve the current issue, actually, they have the opposite as incentive so that they can make 10 times of their previous best year result...hopefully the US administration will start looking into this....
"the OSRA was one of the bevy of deregulatory initiatives in the 1990s, which included the repeal of Glass-Steagall, the Telecommunications Act of 1996, the establishment of the World Trade Organization, and the procurement reform that led to the consolidation of defense contractors."
It could be argued that he banking crash, supply chain crash, endless wars, fake news and outsourcing of virtually all factories and industry to build up a totalitarian dictatorship (China) were the result of all those "stupid pills". There's a fine line between too much regulation and too little but the US economy is now a thousand miles away from that line. The problems have been identified by Matt and others, all that is needed now are some honest politicians to correct them. Currently they are outnumbered.
Would it be correct to say that our health care system is at the point of “ruinous competition?” As a physician in Pennsylvania I can certainly see parallels.
Interesting article. Much snarling in the first part but it got less snarly later on.
The deregulation of the 1990s has been creeping poison to the US economy. America revs high as a nation at the best of times so economic pain gets real fast. Pressure on society becomes ubiquitous (and iniquitous). Worker exploitation is pushed to extremes, metastasizing into an existential threat of precarity. Culture war SNARLING gets violent as government capture is weaponized to change laws that enable (and enforce) oligopoly lockdown. Profit and self-interest, the engines of American prosperity, shift from dynamic growth to zero sum toxic.
What's going to fix this? It'll take a powerful and independent government to turn back the tide on decades of inertia; but if anything today's corporate Democratic Party is part of the problem, the GOP too lost in grift and bullshit to be an alternative. How does the insane oligopoly cartel get stopped? It's hard to see anything but Brazil-style disintegration or China-style technofeudalism coming next.
If starving or freezing to death is more profitable, that’s what will happen. Market forces don’t act for good they act for profit and the two things don’t always align. My feeling is that the more corruption and more monopoly that creep in, the more problems creep in, whether it’s a corrupt politician, corrupt corporation or corrupt non-profit. The problem is that there is no penalty for corruption but lots of reward. There is so much corruption you might as well throw the economics textbooks and formulas out the window, it’s a joke. Everybody knows this except economists.
Curt, I no longer see the original post or the comment to which you replied. Your example works, but describes a wholesale market where consumers are the tail of the dog, i.e., they have little influence on the market’s movement or function. Consumers are victims of the values decisions ERCOT and suppliers make. Utilities markets usually are not free or competitive.
Since we have no ocean lines to speak of (other than the domestic Jones Act trade), how will the USA really effect these global industries? We are the largest market, but we are still only 15% of the global economy. To what degree can we dictate terms to foreign ocean carriers that have the backings of their respective governments? And I love this: "Public investment in new shipping firms would be useful here." Can't wait to see the opportunities for graft and mismanagement at Uncle Sam Lines. It will have the service of the post office and the technology Amtrak.
Hey, Love your work. I am curious if you have or know of a great resource for the history and practices of corporations/incorporations from the early US 1790 and before
Until the 1950s I guess (or whenever) when corporations were formed by state charter and (GSEs) compared to other non incorporates ones?
I am seeking a mark to market/ apples to apples comparison and prism to view the economy of then vs now. Any resources and/or post you can refer to would be helpful. I know the first public accommodation of the flour grinder was an example.
Matt, are you the only one with the monopoly on the knowledge of monopolies? It's such critical insight to the levers of power.
Please list others to read.
Great Piece Matt, in short, all the big liners who control 80% have no incentive to solve the current issue, actually, they have the opposite as incentive so that they can make 10 times of their previous best year result...hopefully the US administration will start looking into this....
"the OSRA was one of the bevy of deregulatory initiatives in the 1990s, which included the repeal of Glass-Steagall, the Telecommunications Act of 1996, the establishment of the World Trade Organization, and the procurement reform that led to the consolidation of defense contractors."
It could be argued that he banking crash, supply chain crash, endless wars, fake news and outsourcing of virtually all factories and industry to build up a totalitarian dictatorship (China) were the result of all those "stupid pills". There's a fine line between too much regulation and too little but the US economy is now a thousand miles away from that line. The problems have been identified by Matt and others, all that is needed now are some honest politicians to correct them. Currently they are outnumbered.
I would point out that it wasn’t the railroads where this process first played out but rather the canals.
Would it be correct to say that our health care system is at the point of “ruinous competition?” As a physician in Pennsylvania I can certainly see parallels.
Interesting article. Much snarling in the first part but it got less snarly later on.
The deregulation of the 1990s has been creeping poison to the US economy. America revs high as a nation at the best of times so economic pain gets real fast. Pressure on society becomes ubiquitous (and iniquitous). Worker exploitation is pushed to extremes, metastasizing into an existential threat of precarity. Culture war SNARLING gets violent as government capture is weaponized to change laws that enable (and enforce) oligopoly lockdown. Profit and self-interest, the engines of American prosperity, shift from dynamic growth to zero sum toxic.
What's going to fix this? It'll take a powerful and independent government to turn back the tide on decades of inertia; but if anything today's corporate Democratic Party is part of the problem, the GOP too lost in grift and bullshit to be an alternative. How does the insane oligopoly cartel get stopped? It's hard to see anything but Brazil-style disintegration or China-style technofeudalism coming next.
Root causes:
1.) practically unlimited corporate money in U.S. politics at all levels — one dollar = one vote vs. one person = one vote;
2.) FOE — the financialization of everything; and
3.) markets, markets, markets — “free” & unregulated = criminality automatically becomes the norm.
We have to take care of #1 before we’ll be able to make real progress on anything else, methinks.
Did you mean DANISH shipping giant, Maersk?
In summary -- monopolies just about everywhere including the US voting system... ;-))
If starving or freezing to death is more profitable, that’s what will happen. Market forces don’t act for good they act for profit and the two things don’t always align. My feeling is that the more corruption and more monopoly that creep in, the more problems creep in, whether it’s a corrupt politician, corrupt corporation or corrupt non-profit. The problem is that there is no penalty for corruption but lots of reward. There is so much corruption you might as well throw the economics textbooks and formulas out the window, it’s a joke. Everybody knows this except economists.
Curt, I no longer see the original post or the comment to which you replied. Your example works, but describes a wholesale market where consumers are the tail of the dog, i.e., they have little influence on the market’s movement or function. Consumers are victims of the values decisions ERCOT and suppliers make. Utilities markets usually are not free or competitive.
Since we have no ocean lines to speak of (other than the domestic Jones Act trade), how will the USA really effect these global industries? We are the largest market, but we are still only 15% of the global economy. To what degree can we dictate terms to foreign ocean carriers that have the backings of their respective governments? And I love this: "Public investment in new shipping firms would be useful here." Can't wait to see the opportunities for graft and mismanagement at Uncle Sam Lines. It will have the service of the post office and the technology Amtrak.
great, professional thoughtful article and research !
Hey, Love your work. I am curious if you have or know of a great resource for the history and practices of corporations/incorporations from the early US 1790 and before
Until the 1950s I guess (or whenever) when corporations were formed by state charter and (GSEs) compared to other non incorporates ones?
I am seeking a mark to market/ apples to apples comparison and prism to view the economy of then vs now. Any resources and/or post you can refer to would be helpful. I know the first public accommodation of the flour grinder was an example.
Thank you for this detailed write up!
Let's go kick old man Potter's ass! Keep it up Matt