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:

Democrats Against Tax Reform The Wall Street Journal

Just Say ‘Yes’ To Prosperity Kevin D. Williamson, National Review

Comey Should Be Indicted Daniel John Sobieski, American Thinker

Wealthy New York City Elites Prepare To Leave The City Under De Blasio’s Tax Burden Robert Donachie, The Western Journal

The Destruction Of The United States Of America Is Almost Complete! Joe Cunningham, RedState

Trump Admin To Remove Climate Change From List Of National Security Threats Mollie Hemingway, The Federalist

Why The $15 Minimum Wage Will Cost California 400,000 Jobs [Watch] Michael Saltsman, Forbes.com

Nanny State Activists Spread Holiday Fear About Toy Safety Eddie Stamper, Competitive Enterprise Institute

Will Net-Neutrality Zealots Apologize When The Internet Fails To Crash And Burn? Investor’s Business Daily

No, It’s Actually The Rich Who Deserve A Tax Break Mahdi Barakat, Foundation for Economic Education

Dow 24000 And The Trump Boom Maria Bartiromo, The Wall Street Journal

Authoritarians To The Left And Right Ronald Bailey, Reason

Good News For Christmas: You Don't Have To Pay Any Attention To Government Dietary Advice Francis Menton, Manhattan Contrarian

Here's How Many People Have Left The EPA Since Scott Pruitt Took Over Cortney O’Brien, Townhall

From California Dreaming To California Leaving John O. McGinnis, Library of Law and Liberty

VA Takes Months To See Marine Veteran, Only To Deny Coverage Of His Injuries [Watch] Chris Neefus, Concerned Veterans for America

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: 4.12%
    FreeMarket Central Shadow Stats: 21.7%
  • Inflation:
    FreeMarket Central November Year-to-Year: 2.04% (CPI-U*)
    FreeMarket Central Shadow Stats: 9.8%

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