10 Steps to Save America!

[a-train]

US economic history. Think of our country before Ida Tarbell's crusade and Teddy Roosevelt's help. Think back to when the Railroad Trust, The Steel Trust and the Oil Trust held sway. These are prime examples of where a consolidation of ownership created powerful monopolies. John D. Rockefeller of the oil trust was able to block his competitors shipping their oil via an exclusive arrangement with the railroad trust, to drive his competitors out of business and then buy up their oil properties for cheap - thus strengthening his monopoly.

He would have earned a salute from Adam Smith and Gordon Gekko. To his credit, Rockefeller always threw silver dimes to the destitute street children whenever he took a walk.

Much of the Railroad monopoly was government supported and created. The big scandal there was the famous Credit Mobilier which nationalized costs and privatized profits. In fact, supporting members of Congress got shares of the deal at a discount. It was a classic case of government using taxpayer money to profit a select group. It was far from some private affair, it was government that did the damage.

The antitrust moves by the federal government FAILED to break up U.S. Steel in 1911. Since then, natural competition has reduced U.S. Steel's market share from 67% to 10%. This is hardly a good example for any theory that free markets produce monopolies and government is good for disposing of the problem, it is in fact a great example of how they do just the opposite.

While I have strong reservations about some of the practices of the living Rockefellers and their attachment to government, it should be noted that the Standard Oil Trust REDUCED the price of kerosene by almost 80% throughout its existence. Standard Oil was simply a very well run organization and it served to deliver product on time and in quantity at a low price.

Ida Tarbell's muckraking was often taken for granted without note of the fact that her brother ran an oil company, the fall of which gave rise to bitterness against Standard. In 1911, when Standard was broken up, it held a 64% market share and had been in decline from a high of 90%. Why was it in decline before the break up? The fact is, Standard never was able to achieve a monopoly, it only inadvertently achieved the fear of one.

I have had a lot of tough competition for my business in the last few years. This summer, my last competitor in my area closed his doors. Do I have a monopoly? I am the only retailer that carries these product lines in my area. Should I hike my prices? The fact is, that there ARE ways for people to get alternatives, there always are.

Entrances of new technologies, products, services, and marketing come along and change everything. That will never change and you can count on it. The day will come when Microsoft is a small controller of just 10% of the software market. The iPod will eventually be buried by something else just as was the Walkman, and the Discman. Our grandkids may be shopping at some insane huge store that took the wind out of Wal-Mart. Perhaps they will shop completely online. Oil will be replaced with different energy sources. All of this will happen efficiently and easily not because of, but in spite of government intervention.

-a-train

Edited October 21, 2008 by a-train

[JohnBirchSociety]

US economic history. Think of our country before Ida Tarbell's crusade and Teddy Roosevelt's help. Think back to when the Railroad Trust, The Steel Trust and the Oil Trust held sway. These are prime examples of where a consolidation of ownership created powerful monopolies. John D. Rockefeller of the oil trust was able to block his competitors shipping their oil via an exclusive arrangement with the railroad trust, to drive his competitors out of business and then buy up their oil properties for cheap - thus strengthening his monopoly.

He would have earned a salute from Adam Smith and Gordon Gekko. To his credit, Rockefeller always threw silver dimes to the destitute street children whenever he took a walk.

The consolidation of ownership you give as examples were all government facilitated. The government, in each case, facilitated the monopolistic practice.

Rockefeller, et. al, used the government to allow their monopolies. They were not free-market adherents.

Adam Smith would not support Rockefeller or the government sanctioned monopolies.

[JohnBirchSociety]

Much of the Railroad monopoly was government supported and created. The big scandal there was the famous Credit Mobilier which nationalized costs and privatized profits. In fact, supporting members of Congress got shares of the deal at a discount. It was a classic case of government using taxpayer money to profit a select group. It was far from some private affair, it was government that did the damage.

The antitrust moves by the federal government FAILED to break up U.S. Steel in 1911. Since then, natural competition has reduced U.S. Steel's market share from 67% to 10%. This is hardly a good example for any theory that free markets produce monopolies and government is good for disposing of the problem, it is in fact a great example of how they do just the opposite.

While I have strong reservations about some of the practices of the living Rockefellers and their attachment to government, it should be noted that the Standard Oil Trust REDUCED the price of kerosene by almost 80% throughout its existence. Standard Oil was simply a very well run organization and it served to deliver product on time and in quantity at a low price.

Ida Tarbell's muckraking was often taken for granted without note of the fact that her brother ran an oil company, the fall of which gave rise to bitterness against Standard. In 1911, when Standard was broken up, it held a 64% market share and had been in decline from a high of 90%. Why was it in decline before the break up? The fact is, Standard never was able to achieve a monopoly, it only inadvertently achieved the fear of one.

I have had a lot of tough competition for my business in the last few years. This summer, my last competitor in my area closed his doors. Do I have a monopoly? I am the only retailer that carries these product lines in my area. Should I hike my prices? The fact is, that there ARE ways for people to get alternatives, there always are.

Entrances of new technologies, products, services, and marketing come along and change everything. That will never change and you can count on it. The day will come when Microsoft is a small controller of just 10% of the software market. The iPod will eventually be buried by something else just as was the Walkman, and the Discman. Our grandkids may be shopping at some insane huge store that took the wind out of Wal-Mart. Perhaps they will shop completely online. Oil will be replaced with different energy sources. All of this will happen efficiently and easily not because of, but in spite of government intervention.

-a-train

Very well stated! Thank you! n/t

[hordak]

Just thought I would add two things that should be requirements for citizenship that I think would help this country.

1. To be a citizen one must serve 2 years in the military.

2. To be a citizen one must pay taxes or if they think they are two poor they must volunteer for a minimum of 100 hours each year of government service.

The Traveler

Yeah that's who i want watching my wifes back. Some guy who was forced into the military.

Military service is volunteer because it isn't something everyone can or should do.

[hordak]

I

7) Absolutely no Federal involvement in Public Schooling.

Who would regulate standards? What happens to the kid who decides to move out of back woods Kentucky and go to collage in Florida only to find out his high school diploma doesn't meet the standards there?

[JohnBirchSociety]

Who would regulate standards? What happens to the kid who decides to move out of back woods Kentucky and go to collage in Florida only to find out his high school diploma doesn't meet the standards there?

The best government is that which is local. Local parents can regulate standards.

National oversight results in lowest common denominator results with no local competition. Besides the fact that Public Education at a national level is a central tenet of Marxist Communism, and is ABSENT from the Federal Constitution of the United States.

[hordak]

The best government is that which is local. Local parents can regulate standards.

National oversight results in lowest common denominator results with no local competition. .

No argument there. However i would be afraid it would cause isolation. I've lived in 5 states in the past 7 years and the difference in the school systems academic standards is huge.I've seen people moved back a year due to this difference.While i agree the schools could use some competition i think there needs to be a national minimum standard to protect the kids who move around a lot and can't afford private school.We need someone to oversee this.

[JohnBirchSociety]

No argument there. However i would be afraid it would cause isolation. I've lived in 5 states in the past 7 years and the difference in the school systems academic standards is huge.I've seen people moved back a year due to this difference.While i agree the schools could use some competition i think there needs to be a national minimum standard to protect the kids who move around a lot and can't afford private school.We need someone to oversee this.

How did we become the most powerful / educated people in human history without "someone to oversee this"?

Why must we adopt Marxist-Communist practices that are not supported constitutionally?

And who better to "oversee" your / my children education than those most local to them?

Public Education beyond local oversight is a fallacy, and has led to the decrease in our educational output for nearly 100 years.