The US government’s obliteration of the Bill of Rights via the Patriot Act, the recent defense bill that allows the military to detain citizens indefinitely without trial, the health care law that forces citizens to buy insurance, and the attempted takeover of the Internet through SOPA and PIPA has gotten a lot of attention lately, and in a few rare cases has generated some effective push-back.
But according to an article in this month’s Harper’s Magazine (Killing the competition: How the new monopolies are destroying open markets, by Barry C. Lynn), US corporations are evolving into forms that are more threatening to their victims than anything emanating from Washington. As the author characterizes it, a new generation of monopolists are imposing their own private governments on their industries — and not always the industries one would expect. This long, detailed article should be read by anyone with a desire to understand how the US is evolving. Here I’ll highlight a few excerpts to summarize the major plot points:
Silicon Valley
Just a few years ago a software engineer’s talents were almost completely portable, allowing a programmer to move effortlessly between tech companies. In other words, there was a functioning market for talent in which the individual had power and choice vis-à-vis local employers. Then a handful of companies began to accumulate near-monopoly control over their product lines — and their workers. From the article:
These days the Valley is once again abuzz. Headlines report bulging wallets and a smorgasbord of new perks. Venture capitalists hum down Route 101, and angel investors lurk and listen in the bars. But instead of a disruptive melee like that of the late 1990s, with its diversity of players and voices, the overwhelming tendency today is a further consolidation of power by the already powerful. During the past decade, a few giants have managed to fence in market after market for hardware, software, and content. Some did so simply by buying up their competitors….
Yet this de facto license to govern a trillion-dollar industry—and with it, entire swaths of the American economy—appears to have left these high-tech headmen unfulfilled. Or so we learned when the Justice Department complained in 2010 that senior executives at Apple, Google, Intel, Pixar, and two other corporations had “formed and actively managed” an agreement that “deprived” the engineers and scientists who work for them of “access to better job opportunities.” Even in those reaches of society long accustomed to the rule of the few, the fact that some of the biggest and the richest had agreed not to poach one another’s workers managed to shock. In an editorial, the New York Times wondered “What Century Are We In?” Yet in the Valley itself, from those most directly affected, we’ve heard only the rarest of whimpers. The anger is there. But it’s tamped down by fear.
…At a crossroads just south of Apple headquarters, in front of a Valero gas station, I caught up with John, who was speed-walking to the dentist. “Of course I don’t like it,” he told me, and proceeded to recount the facts of the settlement in detail. “But what can we do? It’s not like anyone ever dares to speak about it. I mean, they actively encourage us not to talk to one another. It’s all taboo.”
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