This New York Times piece by Tim Wu, a law professor and the author of the recently published “The Curse of Bigness: Antitrust in the New Gilded Age”, highlights the link between two major emerging phenomena of rising populism, nationalism or neofascism and increasing economic concentration or Big Corporate. He highlights that throughout history the origins of fascism are as much economic as socio-political.
“It is a story that should sound uncomfortably familiar: An economic crisis yields widespread economic suffering, feeding an appetite for a nationalistic and extremist leader. The leader rides to power promising a return to national greatness, deliverance from economic suffering and the defeat of enemies foreign and domestic (including big business). Yet in reality, the leader seeks alliances with large enterprises and the great monopolies, so long as they obey him, for each has something the other wants: He gets their loyalty, and they avoid democratic accountability.”
“There is a direct link between concentration and the distortion of democratic process. As any undergraduate political science major could tell you, the more concentrated an industry — the fewer members it has — the easier it is to cooperate to achieve its political goals. A group like the middle class is hopelessly disorganized and has limited influence in Congress. But concentrated industries, like the pharmaceutical industry, find it easy to organize to take from the public for their own benefit”.
As the lawyer and consumer advocate Robert Pitofsky warned in 1979, we must not forget the economic origins of totalitarianism, that “massively concentrated economic power, or state intervention induced by that level of concentration, is incompatible with liberal, constitutional democracy.”
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