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Paul M Sotkiewicz's avatar

As an economist by avocation (albeit in energy/environment/regulatory) and lapsed historian (Russian/Cold War, military, diplomacy) I find similarities between what the founders wanted for government and the ideal of perfectly competitive markets to be striking. For example, Jefferson envisioned a country of farmers, well educated and read (at least enough) where no single individual could control the outcome. This is no different in economics where the firms are not of sufficient size to set market prices on their own.

But slavery was the “original sin” not just in governance and rights, but also in economic terms! Large plantations made up agriculture in the south (a form of oligopoly), 3/5 gave outsize political power akin to market power. In the north, small farms were the norm, it began to industrialize, but it was not until AFTER the Civil War those large industries truly became oligopolies or monopolies holding undue political influence (the Gilded Age).

Oligopoly in economics (few firms that could control price), monopolies (single firm market) are anti-competitive as they can control prices. This is what has been created de facto in the political and governing sphere. The old slogan, “Beware the Generals: General Motors, General Foods, General Dynamics, General (fill in the blank if your most despised high ranking officer).” It lead Ike to warn us of the military, industrial complex which itself is economically and now politically oligarchic and monopolistic.

I am no legal scholar, but the plain reading of the law should always hold. Laws need not be so complex, but yet it is as a barrier to entry…in this case to keep people out of the loop and ignorant rather than keeping competition out. I wonder if anybody has examined the connection between the underpinnings of the Scottish Enlightenment ideas and the beginnings of modern Economics? In writing this I find it “coincidental” that Adam Smith wrote “Wealth of Nations” in the same period as the Scottish Enlightenment…as a Scot no less!

More interesting food for thought. To come up with a good NW, do we link economic outcomes to good governance? Maybe it is a way to get more people to see how this works in their lives.

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