Why Big Business Is Nothing To Be Scared Of

Marian L. Tupy, CapX

Jeremy Corbyn’s economic ideas, as I have explained previously, owe a great deal to the intellectual battles fought between the British Left and  Right during the 1970s and the 1980s. Corbyn, alas, is not the only leftist whose ideas are firmly stuck in the past.

On the other side of the Atlantic, the US Left is busy revisiting 100 year-old concerns from the Progressive Era. Listening to the leaders of the contemporary Democratic Party, you might think that the power and influence of the American corporation is the greatest threat to democracy. But where did that concern come from and should we really be worried?

The modern corporation is a product of the Industrial Revolution, which started in Great Britain in the 18th century, spread to the United States and then, somewhat later, to continental Europe. Prior to the Industrial Revolution, the main unit of production was the family, not a company. Of course, companies have existed for thousands of years and we can trace the first joint economic ventures (ie “proto-companies”) all the way back to ancient Greece and Rome. Until the modern era, however, most national output came from family farms in rural areas and artisan families in towns. Consequently, in the pre-industrial era, the only serious concentration of wealth and power was in the hands of the predatory nobility.

The Industrial Revolution changed all that. Old fuels (wood and peat) gave way to new fuels (coal and oil), old sources of power (wind and water) gave way to new sources of power (steam and electricity) and old machines (the spinning wheel and hand loom) gave way to new machines (the spinning jenny and power loom). The modern factory was born. Factories were located near towns, because towns were located near rivers and factories, like towns, needed access to large amounts of water.

Read full article

You May Also Like:

On Social Media, What's Genius For Obama Is Scandal When It Comes To Trump [Watch] Ben Shapiro, The Hill

The Problem Is Facebook, Not Cambridge Analytica Leonid Bershidsky, Bloomberg

The Sad Hysteria Of The Southern Poverty Law Center Shikha Dalmia, The Week

‘Armed School Resource Officer’ Took Down Maryland High School Shooter Christian Datoc, Daily Caller

What Went Wrong At The FBI Thomas J. Baker, The Wall Street Journal

Nafta Is A Critical Part Of The U.S.’s Economic Future Dan K. Eberhart, Investor’s Business Daily

Hillary Should Just Admit She Hates Half Of America Katherine Timpf, National Review

Democrats’ Obstructionism Is Unprecedented John Hinderaker, PowerLine Blog

Collapse Of Credibility In Mainstream Press Puts Burden On Readers Ira Stoll, New York Sun

At $21 TRILLION, The National Debt Is Growing 36% Faster Than The US Economy Simon Black, Sovereign Man

Two Million Get Off Food Stamps During Trump's First Year Tom Knighton, PJ Media

RNC Raises $12.8 Million In February, Breaks Another Fundraising Record Jack Heretik, Washington Free Beacon

What Could Go Wrong With Obama-era Appointees Putting All Our National Security Eggs In Amazon's Basket? Jared Whitley, Weekly Standard

Alert: Dems Just Got 5 Congressional Seats Courtesy Of The SCOTUS Kevin Daley, Conservative Tribune

The Truth About Medicaid Work Requirements Angela Rachidi, American Enterprise Institute

Millennials Aren’t Saving Because They Think Capitalism Will Be Finished By The Time They Reach 65 Matt Vespa, Townhall

Homeschooling: The Best Hope For America's Future Lloyd Marcus, American Thinker

For More go to the Home Page >>>

Join Our Email List



FreeMarket Central

Some titles recent, all recommended -

Special Video Feature

FreeMarket Central

Voices From The 2017 International Students For Liberty Conference


In Search Of History

The Reagan Tax Cuts Worked

Thanks to "bracket creep," the inflation of the 1970s pushed millions of taxpayers into higher tax brackets even though their inflation-adjusted incomes were not rising. To help offset this tax increase and also to improve incentives to work, save, and invest, President Reagan proposed sweeping tax rate reductions during the 1980s. What happened? Total tax revenues climbed by 99.4 percent during the 1980s, and the results are even more impressive when looking at what happened to personal income tax revenues. Once the economy received an unambiguous tax cut in January 1983, income tax revenues climbed dramatically, increasing by more than 54 percent by 1989 (28 percent after adjusting for inflation).


-- Daniel J. Mitchell,

Shadow Stats Snapshot

FreeMarket Central

ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    FreeMarket Central BLS: 4.14%
    FreeMarket Central Shadow Stats: 21.8%
  • Inflation:
    FreeMarket Central February Year-to-Year: 1.8% (CPI-U*)
    FreeMarket Central Shadow Stats: 9.9%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]