Showing posts with label business and government. Show all posts
Showing posts with label business and government. Show all posts

Wednesday, May 13, 2026

Regulatory Capture and the Public Interest: The FDA

The head of the Food and Drug Administration, Marty Makary, “resigned” in May, 2026 even though the decision had been made by U.S. Health and Human Services Secretary Robert Kennedy “and then the White House signed off on it.”[1] Although Makary had been annoyance to drug-company executives, and to that extent his removal was due to pressure on President Trump by the CEOs, his “resignation” supports the theory of regulatory capture, wherein the regulated companies control the very regulatory agencies (and regulators therein) that regulate those companies, this case shows that it is possible for an industry’s interests to be aligned with the public (health) interest. Does the alignment regarding getting rid of a particular regulator lessen the unethical quality of the broader conflict of interest between business and government?

Without a doubt, the regulated industry was unhappy with Makery and his deputy, Vinay Prasad. For example, “(v)aping executives told Trump that Makary was blocking approval of their products, including new flavored e-cigarettes seen as crucial to the industry’s survival.”[2] Additionally, Prasad was “pushed out of the agency twice in less than a year for running afoul of specialty drugmakers and groups for patients with rare diseases.”[3] He had “rejection letters or requests to run additional studies” sent to more than six drug companies on drugs for rare or hard-to-treat diseases that had previously been approved by the FDA.[4] I do not have enough information to be able to assess whether his actions were in the public interest, as it is possible that the FDA’s previous approvals had been flawed. I have more confidence in concluding that he operated against the public’s healthy in going after an established coronavirus-vaccine maker. He had “repeatedly overruled vaccine staffers to restrict eligibility for new coronavirus shots.”[5] He even refused to “even consider Moderna’s mRNA shot for flu.” Moderna “called for intervention by the White House.”[6] In an internal memo, Prasad had claimed without evidence “that the FDA had linked COVID-19 shots to the deaths of 10 children.”[7] It seems that he was going more off an ideology than science.

It seems likely that the drug-company executives red-flagged the ideological distortion as it would decrease the companies’ future sales. The only ideology that rules in corporate boardrooms is that of the profit-motive, so any competing ideology coming out of a regulatory agency would be easily flagged. In such a case, the company-specific economic interests would be aligned with the public interest because the government-sourced ideology would be partial, hence partisan, and thus not in line with a bigger picture such as can reflect the public interest. In short, any pressure that the executives could bring on President Trump to remove Makary and his deputy would be in the public interest even though it would be a case of regulated companies getting rid of government officials who regulate those companies.

In general, regulatory capture of a government agency by a company or industry that the agency regulates is unethical because it destroys the power-relationship that is required for government regulation to exist. Another way of looking at the ethical problem is by realizing that a company, and even an industry, look out for their own particular (economic) interests, whereas the public interest is a whole. To put a part before or ahead of the whole of which the part is a part is essentially to have the tail lead the dog—a part leading a whole.

Because it cannot be supposed that a part’s interests are identical to that of the whole of which the part is a part, even cases in which the two are in sync cannot justify permitting the part to call the shots for the whole—to direct the whole. Put another way, it would still be unethical for a regulated company or industry to wield such power as could dominate a government in a republic because companies are private property rather than elected bodies. That specific cases such as Makary and Prasad justify the drug industry pressuring Kennedy and Trump does not mean that either official would be justified in being directed by that industry more generally. The problem is that corporate political-campaign donations can be so large that big pharma can have the political pressure to direct even a U.S. president. Going forward, company executives could try to justify such power by pointing to their “public” role in having shelved an ideology harmful to the public health that was pushed by Makary and Prasad. It is important to keep in mind, however, that regulatory capture is nonetheless unethical and contrary to democratic principles of public governance of private property, including companies.



1. Matthew Perrone and Seung Min Kim, “Trump FDA Chief Is Leaving After Angering Pharma CEOs, Vaping Lobbyists and Anti-Abortion Groups,” APnews.com, May 12, 2026.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.
7. Ibid.

Wednesday, April 29, 2026

The E.U. and U.S.: Equal Partners

In 2026, even though the U.S. had 50 member-states and the E.U. had only 27 states, both unions were large enough to constitute what in historical terms, with the European early-modern rather than (the smaller) medieval kingdoms in mind, empire-scale republics. As long as elected representatives hold office at the federal level in both political unions, both unions can be said to be republics (as well as containing republics—or, as Ken Wheare wrote in Federal Government, “wheels within a larger wheel”). Were either union to have only five or so states, the empire definition would not be satisfied. Also, that definition includes the requirement of cultural heterogeneity between (as distinct from within) the states. Being on the same (empire) scale is just one of several ways in which the two unions belong to the same political type. It was in this respect rather than based on the sheer number of states that Sophie Wilmes, vice-president of the European Parliament, said that the U.S. should not regard the E.U. as a little sister (i.e., a junior partner). I contend that she was correct.

Including but going beyond economic and political dependence internationally, Wilmes insisted that the U.S. deal with the E.U. as an equal. “What is very important regarding the United States is that we are talking to each other as equal partners and not as a big brother against the little brother or the little sister.”[1] To be sure, little brothers (and I have one who is a decade younger) are perfectly capable of bossing around older brothers. Even so, concerning the context to which Wilmes was referring, the U.S. was dominate on the Iran War and trade tariffs. In fact, the Commission had acted against giant American computer-technology companies on invasion of privacy and anti-competitive grounds only to be threatened by the Trump administration with (retaliatory) tariffs.

It is arguably from the standpoint of not feeling respected that the E.U. leader was speaking out to assert the E.U. as equivalent to the U.S. and thus worthy of reciprocal respect. Put somewhat crassly, just because the American tech companies could have undue (and anti-democratic) influence in American government does not mean that the latter should not respect E.U. law that differs from U.S. law concerning the tech sector. Equal, or reciprocal respect rather than a claim as to the equivalence of the two unions as falling under the same political type is the basis of Wilmes’ public remarks.

Even so, the demand for equal respect is premised on the unspoken assumption that the E.U. and U.S. are indeed equivalent political unions, whose respective states are thus equivalent. In terms of territory and population, the states cluster. The only exception is Alaska, which is larger than even the European Union, not to mention any E.U. state.  That the political unions are both empire-level, cluster in terms of population (i.e., hundreds rather than tens of millions), GDP, and even territory is the grundlagen upon which comparative politics as an academic sub-field in political science and in practice (including in journalism!) should be based even though this foundation is rarely made explicit. Considering the widespread occurrence of political category mistakes with respect to the E.U. and U.S., scholars, government officials, and especially journalists could have done more to make the equivalence explicit in 2026 when the E.U. official made her statement. In 2025, while speaking with the E.U.’s ambassador to the U.S. at Yale, I made this plea in vain, for E.U. officials were then afraid that making the equivalence explicit would give Euroskeptics such as Viktor Orbán more ammunition with which to dismantle the Union, which was certainly not a “bloc.”


Tuesday, December 16, 2025

Homelessness in the E.U.: Rectifying a Right

In late 2025, the E.U. Commission presented its first European Affordable Housing Plan. The E.U.’s involvement in “social housing,” which translates into federal funds being used to provide housing beyond homeless shelters for people who cannot afford to house themselves, implies that the programs of the states had been insufficient. The U.S. could take a lesson from the Commission’s plan, which is cleverly multi-pronged in tackling the societal problem. Both in the E.U. and U.S., both federal and state funds were needed even in 2025 when neither economy was in recession. It is better to increase the supply of affordable housing when times are good than when unemployment is soaring. This is an exception in the E.U. to the usual pattern wherein the E.U. increases its competencies, or enumerated powers, in periods of one crisis or another. Russia’s multi-year invasion of Ukraine, which borders the E.U., and the Union’s foreign and defense activity demonstrate how European integration has typically been enhanced by crisis rather than when times are good.

Homeless in both the E.U. and U.S. was a problem in 2024. In its “9th Overview on Housing Exclusion” in 2024, Feantsa estimated a total of 1,287,000 people “rough sleeping, staying in night shelters, or temporary accommodation” in the European Union.[1] According to the U.S. Federal Reserve Bank, 771,400 people were homeless in January, 2024—an increase of 118,300 from 2023.[2] The total population of the E.U. at the end of 2024 was estimated at 450.4 million, and that of the U.S. was 341.8 million (whereas the respective states tended to cluster in the tens of millions). That works out to .0028% and .0023%, respectively. This may come as a surprise because in Europe, housing is more likely to be viewed as a right than in the United States.

Dan Jorgensen, the E.U. Commissioner for Energy and Housing (and the first such commissioner in E.U. history), said at the time of the Commission’s presentation of its proposal, “Housing is not just a commodity; it is a fundamental right. We must mobilise every euro and do everything in our power to make sure that in Europe everyone can afford a decent place to call home.”[3] In the U.S., the lax regulations on investor-speculators on houses, condos, and even apartment buildings evince a commodities-orientation to residential real-estate, whereas in the E.U. the homelessness problem may have more to do with insufficient supply rather than the salience of a political ideology favoring business or disfavoring the poor as deserving their plight.

I contend that permanent housing as a right is a better political ideology than is the business-commodity view of housing units both because being homeless takes such a terrible toll of the human psyche and because society should be obligated via the market or else the state to supply permanent housing because economic interdependence is endemic to a society as opposed to Hobbes’ state of nature, where life is short and brutish. Put another way, being in the state of nature in terms of housing while being in a society does not work because a society and a state of nature are mutually exclusive. 

It is inconsistent to insert, especially within city and even a town, even a slice of Hobbes' state of nature, whether in the form of sociopathic violent gangs for which law in south Chicago in Illinois is wholly disrespected, or homeless individuals in a town or city. Having the state of nature within a society is not like Yin being in Yang, and vice versa, in Chinese philosophy; rather, the state of nature inside a society contradicts the necessity that Kant argued is inherent to law, whether public or moral law. Furthermore, to tolerate homelessness within a society is like inserting a vice like vengeance into omnibenevolence—a point that Nietzsche makes in claiming that the Abrahamic deity is “dead” in the sense of having been discredited by being both vengeful and perfectly benevolent, which are incompatible with each other. Even though the effort to rid humans of vengeance is laudable, the cost in assigning the vice to God was surprisingly overlooked, and still is. Similarly, the utter incompatibility of homelessness and society is seldom recognized. 

By the end of 2025, it was well beyond time for the E.U.’s Commission to come up with a plan to rid the Union once and for all of the sordid plight of homelessness. Ridding Europeans of the constant, underlying existential angst that does not leave a mind that is subtly aware that homelessness could occur in the future can be expected to result in happier, more relaxed people and thus less interpersonal strife. It is indeed realistic that the E.U., together with the member-states, could together, as a shared competency, eliminate  the problem of homelessness in 2026 by relaxing state rules on whom can receive housing assistance (i.e., not just the very poor), using federal “European Social Housing” funds to get homeless people immediately into at least short-term housing (even hotels), and incentivizing the construction of more housing units to meet the demand, and even reducing housing prices and rents for everyone. The sordid commodity perspective in America would be exposed as severely flawed, as it reflects elected officials across that Union being in the campaign-financing pockets of private finance and business rather than looking out for, or protecting, all constituents from the horrible experience of being homeless. Just in virtue of being a human being—how we are hard-wired and how vulnerable the human brain or mind is to the incapacitating harm from severe, existential stress—something beyond short-term housing should be ensured unconditionally. How a human mind reacts to being homeless ought to justify the unconditional aspect, as those who do not work must wander around at all times and be subject to theft is a callous ideological belief.



1. “What is Homelessness,” Feantsa, Feantsa.org (accessed 16 December 2025).
2. Lisa McKay and Kenneth Cowles, “Who Is Homeless in the United States? A 2025 Update,” The Federal Reserve Bank of Minneapolis, March 14, 2025.
3. Vincenzo Genovese, “EU to Revise State Aid Rules to Address bloc-wide Housing Crisis,” Euronews.com, 16 December 2025.

Monday, August 11, 2025

Wealth and Ethics in American Fiscal Policy

In a struggle between wealth and ethics, practically speaking the former tends overwhelmingly to win hands down, even if the form of government is at least nominally a representative democracy, but in fact an oligarchy or plutocracy. The influence of the moneyed interest both in the E.U. and U.S. is likely much stronger than most of the respective citizenries know. When the poorest of the poor are to be made worse off financially by cuts in certain government programs while defense contractor companies stand to get more, which tends to mean higher bonuses for executives (and campaign contributions for elected representatives), the skew toward the gilded and away from the most vulnerable economically can be viewed as an x-ray of sorts indicative of rule by wealth rather than by the People. U.S. President Trump’s fiscal budget enacted in 2025 is a case in point by which the questionable morality of the plutocracy or oligopoly form of government can be gleaned.

Plato laid out the following as alternative forms of government, from the best to the worst:

1.       The Ideal State (kallipolis): everyone is doing their respective jobs well; philosophers with knowledge of the good are in charge of making decisions pertaining to public policy.

2.       Timocracy: (e.g., Sparta): people who love honor, social status, and competition are in control. In other words, a military. 

3.       Oligarchy: producers (or suppliers) of goods and services (i.e., business executives and or companies) are in control. That is business runs the government.

4.       Democracy: the “mob” is in control. Direct democracy. Such “mob rule” is volatile, with enacted policies swinging back and forth. This does not include representative democracy, which is better, but not as good as having a philosopher king rule because reason should control the passions in a mind and a city.

5.       Tyranny: a tyrant is in control. This is the worst form of government, for obvious reasons, as an autocrat faces no worldly constraint in unleashing suffering and death on a population. In 2023 through at least 2025, the Israeli government was a tyranny in Gaza.

The three highest Hindu castes fit the three highest Platonic forms of government, with Brahmins, who are ideally priests (or philosophers), soldiers/generals, and merchants in descending order in Hindu society. The “mob” in Plato’s scheme corresponds to the laborers in the caste system. That business managers (including CEOs) running (and thus controlling) government are higher than direct democracy may sound strange to modern ears in the West, even in the E.U., in which Greece is a state unless the difference between well-paid modern elected representatives and a mob of mostly uneducated (i.e., unprofessional) laborers in ancient Athens is grasped. Even in modern representative democracies, complete with terms of office to buffer the momentary passions of the people—passions that can contradict a people’s long-term best interests (i.e., the public good)—corporate interests likely view themselves as superior and thus legitimately at the helm in what is known as a plutocracy, or rule by wealth. The moneyed interests could cite Plato’s hierarchy of government-types without bothering to point out that Plato had mob-rule rather than the U.S. Senate in mind as democracy. We need not pit the reasoning, albeit skewed by self-interest, of CEOs on public policy against what a disorganized mob might come up with as the public good (over partial interests), but we might want to consider whether corporations and individual CEOs should have so much monetary sway with elected representatives and their appointees that a representative democracy is de facto a plutocracy serving the relatively narrow interests of capital. The pecuniary interests of American defense-contractor companies in manufacturing and selling weapons, planes, and tanks to the U.S. Government for use in Israel as it pummeled 2 million residents of Gaza in 2024 and 2025 were not necessarily in the best interests of the United States, which might have been more accurately represented and instituted by the American electorates than business political-action-committees helping representatives get re-elected. Not that any member of Congress cares about that, of course.

Or take the “Big Beautiful Bill” passed by the Republican lawmakers in both chambers of Congress and signed by President Trump in 2025. The projected economic impacts on the different economic tiers of Americans supports Adam Smith’s fear that company managements and government officials would work together at the expense of workers and even competitive markets themselves. On August 11, 2025, the Congressional Budget Office made public its estimates “that the 10% poorest Americans will lose roughly $1,200 a year as they experience restrictions on government programs like Medicaid and food assistance, while the richest 10% of Americans will see their income increase by $13, 600 from tax cuts. Overall , American households will see more income from the tax cuts in the legislation, including middle income households, but the largest benefit will go to the top 10% of earners.”[1] Such a distributional impact could be expected in a plutocracy, even in the form of a hijacked representative democracy. Very poor disabled Americans living on Social Security (SSI) of less than $1,000 a month already faced reductions if they negotiate a good deal on rent, or a friend or relative helps out with utilities or rent. That the U.S. Defense Department budget was increased, with corporate defense contractors set to reap additional profits as a result, illustrates the questionable ethics in taking from the poorest of the poor, who cannot work, and giving more to wealthy corporations (with higher bonuses, everything else equal, going to executives). Additionally, just for added fun, roughly “2.4 million people won’t be eligible for the Supplemental Nutrition Assistance Program [i.e., food stamps] under new work requirements” for poor Americans who have not been declared disabled by the Social Security Administration.[2] Food has thusly been declared not to be an unconditional human right. As the work requirement applied to Medicaid, the government program that funds healthcare for the very poor, access to medical services—and thus good health—was also declared to not qualify as an unconditional human right.

In short, the American social contract between the federal government and its people was changed in ways that stood to make many of the poorest Americans poorer while defense contractors could make even more money from that government. The new social contract reflected a plutocracy or oligarchy in the guise of a representative democracy. Although arguably superior to mob rule, such a trajectory for representative democracy may trouble a good many people, financially or otherwise perhaps in conscience. A person need only read John Rawl’s Theory of Justice to realize that a plutocracy gearing public policy to the narrow interests of a part rather than the whole of a society is diametrically opposed, or antipodal, to a system of government and economy in which the poorest of the poor are looked to first such that they can survive and lead decent, albeit not wealthy, lives before other, increasingly better off tiers are taken into account. In a school yard, only a bully goes after the kids with the least to eat for lunch so to enrich himself and his buddies.



1. Stephen Groves, “Trump’s Tax Law Will Mostly Benefit the Rich, While Leaving Poorer Americans with Less, CBO Says,” The Associated Press, August 11, 2025.
2. Ibid.

Tuesday, July 8, 2025

Elon Musk’s Controversial Politics: Beyond the Financials

As U.S. President Trump signed his “Big Beautiful Bill” into law on July 4, 2025, Elon Musk, shareholder and CEO of Tesla, announced that he would create a new political party (or “group” in European-speak). Musk opposed the projected trillions of dollars that the bill would add to the debt held by the U.S. federal government, though, as CEO of SpaceX, he was fine with cutting a trillion dollars from Medicaid, which provides health coverage to the poorest of the poor, and from food assistance while the defense budget was augmented. Musk’s proposed “America” group would likely draw support from Trump’s “MAGA” base, rather than from moderate Republicans and any Democrats. Whether Musk was more motivated by breaking up the political duopoly of the two major parties, or groups, to increase the practical options for voters or to split Trump’s support and punish the Republican party, such controversial political involvement by a major shareholder CEO is without doubt risky business. This is not to say that CEO’s should not be active politically apart from business strategy, for even business managers are citizens and thus may feel compelled to become active politically. This is to be lauded especially if the motive is out of duty to repair or otherwise improve a political system.

On the next working day after Musk’s announcement that he would be forming a new political party, “Tesla shares plunged nearly 7 percent . . . as investors registered dismay” at Musk’s “plans to form a third party and his intensifying feud with President Trump.”[1] Even though 7% is not exacting “plunging” or “crushing” Testa shares, beyond the hyperbole of journalists is the point that not avoiding controversy politically has costed Tesla and Musk himself financially. To be sure, billionaires can afford to lose significant wealth and still be left standing comfortably, and even in the case of business practitioners, economic reductionism doesn’t always hold. Also, political involvement can raise stock prices, as, for example, “Musk’s involvement in politics and his financial support for the president’s campaign were once seen by investors as a benefit to Tesla, fueling a steep rise in company shares after the election” in November, 2024.[2] No one but the most cynical would deny, however, that Musk’s chief motivation that led to his involvement in “DOGE” in the White House was for his businesses to benefit even though they did, initially. So that they took a hit when Musk broke from President Trump and then formed the America Party cannot be assessed only as concerns the financial impact on Tesla or SpaceX.

In American history, the notion that wealthy people should devote some time to public service for the benefit of the Union or their respective member-states was once well-known. Both because such people could afford financially to take time off from business and because their experience could be useful in governing, the notion of public duty was beneficial to the public good. Men like Thomas Jefferson and George Washington did not make public service into a career and did not go into politics primarily for its positive financial benefit. As a frustrated General dependent on the sovereign states whose delegates met in the Second Continental Congress, Washington would not have endured such hardships as he did were his motivation simply to benefit himself and his landholdings in Virginia financially. Even though Musk is by no stretch another Washington, more has been involved in Musk’s political motivation than maximizing Tesla’s stock price or gaining government contracts for SpaceX, and even getting back at Donald Trump. Government, moreover, is not just the aggregate of business interests without remainder.

Other billionaires might look to Musk’s example not in terms of his political ideology necessarily, but in terms of having enough financial cushion to weather political-turned-financial pushback from going beyond business to engage in public service—to give back, as it were, so to improve the system of government and add to the public good. It is admittedly very easy to be guided by personal and business financial considerations in delving into politics, whereas being willing to hold those at bay out of a sense of public duty is more difficult, and, frankly, increasing rare as American history has proceeded but not necessarily evolved politically. The notion that duty pertains to citizenship has become increasingly recessive in public discourse and consciousness. This is to say that duty-bound CEO’s are saints; rather, it is to say that we shouldn’t be so surprised when a billionaire businessman jumps into politics not merely for financial reasons, and thus not turn back to shore after a financial hit. Even if motivated by political ideology rather than in saving the union from itself (e.g., public debt), personal and business financial benefit is not the whole story, and the public good can still be a beneficiary. 


Mozi says, "'worthy people [are] those who are well versed in virtuous conduct, discriminating in discussion, and broadly knowledgeable!’ . . . . When the wealthy and eminent in the state heard this they retired and thought to themselves, ‘At first, we could rely on our wealth and eminence, but now the king promotes the righteous and does not turn away the poor and the humble. This being the case, we too must be righteous.'"[3]



1. Jack Ewing, “Musk’s Idea of 3rd Party Is Crushing Testla Shares,” The New York Times, July 8, 2025.
2. Ibid.
3. Philip J. Ivanhoe and Bryan W. Van Norden, ed.s, Readings in Classical Chinese Philosophy (New York: Seen Bridges Press, 2001), 58.


Thursday, June 5, 2025

Musk vs. Trump: American Business and Government at Loggerheads?

When the wealthiest person in the world and the President of the United States cross swords, people are bound to notice. Such a very public clash between billionaires, one of whom is the most politically powerful person in the U.S., should not lead the rest of us to infer that the interests of large corporations and the U.S. Government, including the respective executives and elected representatives, typically conflict. Corporate and individual mega-donations to political campaigns, the proverbial “revolving door” between working in government and at a corporation, the reliance of regulatory agencies on information from the regulated companies invite the exploit of conflicts of interest such that legislation and regulations are even written by corporate lawyers for their respective companies’ financial interest. Furthermore, that many very large American-based corporations have interlocking boards of directors gives corporate America considerable unified force in seeing to it that Congress and the federal president remain friendly to business interests. That both benefit from the status quo and have de jure or de facto vetoes of reform proposals reinforces the staying power of the club. Even as U.S. Senator Bernie Sanders enjoyed considerable media attention and crowds in his speaking tour against oligopoly (i.e., consolidation within an industry such that companies can set prices at will and can thus extract extra profit beyond that which would accrue in a competitive market), it would be wildly optimistic to hope for an onslaught of anti-trust enforcement from a Republican or Democratic administration.

Even though U.S. President Trump claimed in early June, 2025, that he had told Elon Musk to leave the Administration because Musk was “wearing thin,” and Secretary of State Rubio would doubtless attest to that, it should not be forgotten that Musk had spent more than $250 million “helping President Donald Trump win a second White House term.”[1] Musk “also spent more than $19 million in the final weeks of the 2024 election cycle to help Republicans win narrow majorities in Congress.”[2] Even though Musk was the richest person in the world at the time, to spend so much money and yet be inattentive to how his companies could benefit from government contracts and electric-car subsidies defies human nature. Indeed, even though Musk denied opposing Trump’s tax and government spending “Big Beautiful Bill” because of the cuts to EV subsidies, Trump had a point that the negative financial impact on Tesla was not a point in the bill’s favor to Musk. To be sure, Musk’s complaint about too much “pork” and thus deficit spending being major problems in the bill that the U.S. House had recently passed by a single vote is valid. Nevertheless, lest it be assumed that a dispute on public policy between two billionaires is in the interest of the poor and middle-class, Musk registered no complaint about the cuts to Medicaid, which finances healthcare for the poor who cannot afford private health-insurance, and food assistance for the poor.

Even in the midst of an argument between billionaires in business and government, we cannot assume that the conflict of political-economic interests among the elite results in the enactment of public policy that is in the public interest. In Trump’s bill, for example, even though less money would subsidize electric vehicles, there were no reductions of subsidies in the bill that passed the House for coal and oil companies. The grip of those companies in Congress and the Trump Administration could be assumed to be tight in spite of the global average temperature having reached 1.5C degrees, which the Paris Accord of 2016 set as a threshold. The cozy relationship amid climate change puts in stark relief the distinction between private interests and the public interest.

When asked at the Qatar Economic Forum in 2025 whether he would continue making political donations as he had in 2024, Musk replied, “I think I’ve done enough.”[3] It should not be missed that he added, “Well, if I see a reason to do political spending in the future, I will do it.”[4] It would be of value to the American political economy if he would do contribute to political campaigns aimed at breaking up the cosy relationship that CEO’s and (and the corporations) have with elected officials and regulators at both the state and federal systems of government in the U.S.; by “breaking up,” I mean something more substantial and structural than barring government officials and employees from being hired by corporations that have benefitted from the work of the officials and employees.

Instead, I recommend a return to competitive markets and even possibly limiting political-campaign contributions of corporations and the ultra-rich, for the financial influence of large concentrations of wealth on elected officials and appointees tilts the political economy away from being oriented to the public interest, which is not arrived at by the entanglement of certain powerful private interests. To be sure, going so far as trying to eliminate the gravitas of wealth politically would be utopian and thus a fool’s errand, but public policy could be formulated and enacted that is aimed at reversing or countering at least some of the self-interested tilt of the American political economy that so benefits members of the club—Trump and Musk included. Nor is Socialism necessarily the answer to protecting the poor and middle-class from the self-interested endeavors of the interlaced economic and political elites, for Adam Smith’s invisible hand can do wonders to regulate price if only competition is restored to oligopolistic industries, which includes even social-media companies.

Trump’s threat to cut off Musk’s SpaceX from government contracts and Musk’s acknowledgement that he might make sizable political donations even though he was disappointed in Trump’s bill for its pork and probable significant addition to the U.S. federal debt indicate that politicians have considerable discretion being able to benefit companies financially and that CEO’s can make use of such discretion by legally paying off political candidates and those office-holders who are up for re-election and would all too easy exploit a personal conflict of interest by bending public duty to private campaign-interest. Using ambition to check ambition is part of the genius of the American political system of checks and balances, but as the ambitions are solely among the wealthy, it cannot be assumed that the public interest is necessarily being served by the resulting public policies, for collusion even between contending ambitions does indeed exist even if the publicly-aired arguments among the elite of the political economy are more titillating.


1. Kevin Breuninger, “Elon Musk Says He Will Spend ‘A Lot Less’ on Future Campaign Donations,” CNBC.com, May 20, 2025.
2. Ibid.
3. Ibid.
4. Ibid.

Monday, April 7, 2025

Tariffs as a Negotiating Tactic: Undercut by Wall Street Expediency

With all the economic and political turmoil from the anticipated American tariffs, it may be tempting, especially for financially-oriented CEOs and billionaires looking at quarterly reports, to call the whole thing off even though doing so would deflate the American attempt to renegotiate trade bilaterally with other countries. The concerns of the wealthy, whether corporations or individuals, have their place, but arguably should not be allowed to "lead the proverbial dog from behind, lest the dog run in circles and get nowhere." Moreover, the notion that any goal that is difficult and takes some time to materialize can or even should be vetoed by momentary passions at the outset is problematic and short-sighted. That U.S. President Trump's announcement of bilateral tariffs quickly brought fifty countries to the negotiating table is significant as a good sign for the United States, as long as that country's powerful business plutocracy (i.e., private concentrations of wealth that seek to govern) can be kept from vetoing the emergent trade policy, which at least in part is oriented to trade negotiation and ultimately to the notion that fair trade is conducive to increased free trade. 


The full essay is at "Tariffs as a Negotiating Tactic."

Monday, January 20, 2025

The Tech Industrial Complex

Democracy, Plato and Aristotle both theorized, is a governmental system that is most susceptible to the mob—meaning mob-rule. Accordingly, the Electoral College and the appointments of U.S. Senators by state governments, the latter being the case from the establishment of the U.S. Constitution to a few decades into the twentieth century, were meant to limit any damage from momentary passions of the People to the U.S. House of Representatives. The governments in the United States, like those in the European Union, are republics in which democracy is a part rather than the whole. What neither Plato nor Aristotle could foresee in their agrarian city-states is the threat to democracy by plutocracy—the system of government in which private wealth rules. It is less understandable why the American electorates have ignored repeated warnings of the threat, especially as governmental power has concentrated at the federal level since the war between the CSA and the USA in 1861.

Much like U.S. President Dwight Eisenhower had done “in 1961 when he expressed concerns about the ‘military industrial complex’ in his farewell address,” President Biden said in his address, “’an oligarchy is taking shape in America’ as power and money become more concentrated in the hands of the few.”[1] Biden “criticized the ‘tech industrial complex’ and social media, where ‘the truth is smothered by lies for power and for profit.’”[2] It seemed likely in 2025 that Biden’s warning would not eventuate in any policies oriented to breaking up the concentrations of private wealth, which I submit are inherently incompatible with a democracy. Simply put, seeing billionaires visibly chatting with government officials during President Trump’s second swearing-in presents a picture that may suggest that the influence of private wealth on public policy (and thus government officials) had gained such a foothold that the confluence could be shown brazenly without fear that the American people might vote for candidates campaigning on enforcing anti-trust law and raising the effective tax-rates on billionaires to the point that, with anti-trust, being so rich from an oligarchic business would not be possible going forward.

Tech titans amid the incoming administration: Just the visible tip of an iceberg. (Getty)

Besides Elon Musk, perhaps the richest billionaire in the world at the time, Mark Zuckerberg of Meta (Facebook) as well as the titans of Amazon, Google, Apple, and Microsoft could be seen on television in front of, and amicably chatting with the incoming administration's Cabinet secretaries. Musk was chatting with Trump's proposed secretary of defense in spite of the conflict of interest in Musk owning SpaceX. Zuckerberg could feel comfortable being seen chatting with secretaries and President Trump’s adult sons in spite of his power to minimize political dissent on social media. With 90 days to decide whether to close down or sell Tik Tok, President Trump expressed interest in a news conference in the evening of his second inaugural in letting rich Americans buy into a 50/50 joint venture that would allow China to continue Tik-Tok operations in the United States. Were Zuckerberg or Musk to invest enough that they could exercise control on the company through the American half, the investments could put the two social-media titans closer to achieving monopoly control over social media in the United States. 

The real power evinced in the inaugural ceremony was in the seating area where the Cabinet nominees, the tech titans, and Trump's business-oriented relatives were sitting. At one point prior to the arrival of Trump himself, all of the living former U.S. Presidents, Democrats and Republicans, were looking across the aisle at the cadre of Trump’s nominated cabinet secretaries, the billionaire tech titans, and Trump’s business-family. Those former presidents undoubtedly knew where the real power was, and perhaps they were surprised to see the public-private collusion so brazenly visible. After the ceremony, hidden from the public’s view at the lunch in the Capitol, members of Congress, “Cabinet nominees and business titans within Trump’s inner circle” mingled.[3] The luncheon was an “opportunity that VIPs use to mix and mingle with members of the administration and advance their policy priorities. Apple CEO Tim Cook [was] seated between Donald Trump Jr and [U.S. Senate] Minority Leader Chuck Schumer.”[4] I submit that most such mingling takes place behind closed doors, even and especially in regard to the writing of laws. It is not uncommon for Congressional committee to use language written by the companies to be regulated.  

Lest President Eisenhower’s warning of the dangers to democracy from the military-industrial complex be replaced by Biden’s warning of a tech industrial complex as if the former had gone away on its own,  President Trump promised in his second inaugural address, “Like in 2017, we will again build the strongest military the world has ever seen.” Lest it be forgotten, President Biden has approved weapon-sales to Israel even as it ravaged the residents of Gaza on a scale that openly deified international human-rights law. Rather than assuming that Eisenhower’s problem was only existed in the second half of the twentieth-century, the American people in the twenty-first century would not be wrong in perceiving the tech industrial complex as being on top of the continuing military industrial complex. How many such complexes must there be before a existential threat to democracy itself be recognized and combatted? The sheer power of huge sums of private money, such as the influx of Elon Musk’s millions in Trump’s 2024 presidential campaign, and the magnitude of the discretion that Zuckerberg showed he had in unilaterally firing fact-checkers on his social-media company, can indeed be peeled back to reveal just how much the American voters could be manipulated on whom to vote for and even what issues to focus on. Rarely, if at all, did a candidate for federal office propose applying anti-trust law to the social-media’s big companies in the U.S.—an oligopoly. Nor was there any traction from the few voices in Congress suggesting that maybe the U.S. Government should stand up to military contractors by refusing to buy weapons for Israel and give that country’s government money to buy even more American weapons. The shop was open for business; human rights be damned.

The point is seldom made in American public discourse that had the U.S. Government enforced anti-trust law, including stopping tech giants like Facebook and Twitter from peremptorily buying up potential new-entrants in the first two decades of the twenty-first century, a billionaire class would not have been so large, and thus such an implicit threat to democracy. Just in how social-media company financial (and political) interests can be tacitly presented to manipulate internet users in feeds without the voters realizing it, the reason why Biden’s warning was not likely to be heeded at the ballot box can be understood. I submit that the televised images of tech “competitors” sitting together at Trump’s second inaugural points to an inter-related oligopoly instead of a competitive market (wherein new entrants are not bought up). But this is not all that we can take away from having watched the ceremony; we could also see the billionaires amicably chatting with likely high officials in Trump’s second administration, with Musk’s SpaceX having a financial interest in being NASA’s exclusive space-sub-contractor, and with Musk’s “X” and Zuckerberg’s social-media giant having a financial interest in what the Trump administration does about Tik-Toc. 

Extreme personal and corporate wealth literally in front of government officials at the inauguration in democracy's own Capitol Rotunda. 

My point is that, had the inherent threat that having billionaires poses to a viable republic been grasped by the American public, then governmental power would have been used such that the Musk, Zuckerberg, Bezos, and other tech managerial-visionaries would not have been able to become billionaires in the first place. As of 2025, and perhaps even back in 1961 concerning the military contractors, the proverbial horses were almost certainly already out of the barn. Thus, the electoral grass-roots energy going forward from 2025 needed to upset the proverbial apple-cart being steered by individual teckie billionaires to advance the financial interests of their respective companies in the halls of American government would be, realistically speaking, virtually unattainable. One of the most remarkable visuals from President Trump’s second swearing-in ceremony was that of the former presidents all looking over at the billionaires' very visible nicities with the incoming Trump officials and Trump's financially-inclined scions. The former presidents looked like bystanders rather than as pillars of power in themselves even though power had presumably been given to them by the People. I’m just glad that it does not fall to me to get the horses back in the barn. Ultimately, the American People since World War II are to blame for not having minded the proverbial shop as a going concern, for they should have known from the Titanic that most of an iceberg is hidden from view under water. Yes, I think people should know that, even with respect to icebergs in the ocean of political economy. Perhaps, though, I think too highly of popular sovereignty, which, unfortunately, is admittedly quite vulnerable to being manipulated. Both the manipulation itself and the sources are very difficult for the public to detect. Whether through social and/or mass media, even just a few very rich people or a large company, or a network of large corporations with  oligopolistic shared financial interests can frame what is debated, and keep out what is not. It is precisely because detection is so rare that the visuals coming out of Trump's second inaugural are so important, for they give us a rare glimpse of the nature and dynamics of real power in America.



1. Chris Megerian and Colleen Long, “Five Things To Know about Biden’s Farewell Address that Also Served as a Warning to the Country,” APnews.com, January 15, 2025.
2. Ibid.
3. Michelle Shen, “Trump Attends Congressional Luncheon Where Key Politicians and Business Leaders Mingle,” CNN.com, January 20, 2025.
4. Ibid

Thursday, December 12, 2024

On the Hidden Police Power of Corporate America

After the UnitedHealthcare chief executive “was gunned down by a masked man outside a Manhattan hotel” in New York City, “a days-long manhunt” occurred that “spanned several states.”[1] The fact that only a few days were needed to find the suspect, Luigi Mangione, indicates just how massive and public the manhunt was. For it was not just any murder, as if the murder of a person who is the chief executive of a large corporation were worth so much more than that of the rest of us. I suspect that the influence of the company, and, moreover, corporate America, on local police in any U.S. member state is more than reaches the headlines. The case at hand my even suggest that that influence includes even tacit instructions to treat anti-corporate suspects of murder violently both in retaliation and as a visible reminder to other potential killers that CEOs are off-limits.

As Pennsylvania sheriff employees took Mangione from a vehicle to the back door of a courthouse, at least two of the employees shoved the suspect—and, remember, in the U.S. a suspect is presumed innocent unless or until proven guilty in a court of law—into a wall even though the wall was not on the way from the vehicle to the back door. In other words, the unnecessary violence was not on the way to the back door, and nor was the suspect resisting going into the courthouse. I contend that the unnecessary violence was at the behest of the corporation whose CEO the suspect allegedly shot. At that time, the evidence that would be found had not yet been found, as per the defense attorney’s statement in the courthouse. Whether the violence being maliciously applied by sheriff employees was merely to show the world how a suspect accused of killing a CEO gets treated by law enforcement, or to stop the suspect from speaking to the media present on his way to the backdoor is not clear. It seems to be possible, at the very least, that corporate instructions given to the police in Pennsylvania included: Don’t let the guy get his anti-corporate message out. This would be ironic, given that corporations had at the time the right of free speech, even through spending as if money constitutes speech.

That Mangione was not resisting going into the courthouse and yet was manhandled rougher than suspects were typically treated at the time may give Americans, as well as the world, a glimpse into the power that large concentrations of private wealth (which is what a corporation is) even as translated into raw violence. The use of police by companies in twentieth-century America to beat workers on strike is well documented. What I am suggesting is that local police were still susceptible to wealthy private interests such as corporations into the next century, at least as of the 2020s. I contend that any contact between police departments and the healthcare insurance company would properly have been limited to the police gaining information in the search for the killer.

Another indication of an over-reaction by local police occurred days after Mangione had been arrested, when Briana Boston was charged with a felony “with one count of making threats to conduct a mass shooting” during a phone call with Blue Cross Blue Shield, her health-insurance company, which was denying a claim that she had submitted. Obviously angry, she said, “Delay, deny, depose. You people are next.”[2] The phrase, “delay, deny, depose,” had been written on bullets by Mangione in reference to tactics that insurers use to avoid paying out claims and had become popular online. Because of the popularity, it could not be assumed that the woman was planning on writing the three words on bullets; the phrase had entered the lexicon. In fact, “(a)ccording to a consumer survey by KFF, more than half of insured [American] adults [had] experienced problems with their insurance provider, and some [of those adults] reported serious consequences.”[3] Strangely, the local police in Lakeland, Florida, said that her statement could be taken as probable cause of “making a threat to conduct a mass shooting . . ., according to the affidavit.”[4] A reasonable interpretation of, “you guys are next,” is that if Blue Cross continues to screw policy holders who do their part in paying premiums, someone may eventually go too far in retaliation. She did not say that she was going to take any violent action, or what that action might be. Given that she was momentarily angry, and perhaps justifiably so, the police employee who leapt to the conclusion that the woman was saying she would conduct a mass killing is ludicrous, and yet the police had the discretion (and thus power) to make an example of the woman by charging her with a crime carrying a fourteen-year sentence, without her having done anything. Had being angry at customer-service employees become a crime? Or, had free-speech that is objectionable to big business become a crime? If so, could corporations next go after certain thoughts, using employees of local police departments who dismiss protecting the public as dutiful sycophants?

We can turn the Lakeland police investigation on its head by investigating that department. It is significant that “Lakeland, Florida police said they were contact by the FBI . . . in response to the alleged threat.”[5] That the police did not waste any time and did not seem to second-guess the FBI may suggest that the FBI had been determined to snuff out the “potential” copy-cat. To be sure, the FBI may simply have been over-cautious, but even that could have been due to pressure from Blue Cross or elected officials who have received campaign contributions from the giant company. That both the FBI and the local police department in Florida would knowingly seek to charge an angry policy holder of a crime that carries a sentence of 14 years in prison indicates a grossly disproportionate reaction, which itself could point back to the deference that the FBI (and local police) give to business in doing its bidding, even to scare the public.

As an anecdote, once when leaving a restaurant after barely eating a very badly cooked meal, I was speaking to people in the shopping center’s parking lot about the food. The manager of the restaurant got wind of this and approached me even though I was no longer on her establishment’s property. “The police here are my friends!” she warned me. “Keep talking about my restaurant and I will get them to make you leave.” The manager’s sheer presumptuousness was laughable, so I kept talking as was my right. She did call her friends, who told me I had to leave the parking lot even though that lot was not owned by the restaurant. That the police dismissed my legitimate objection told me enough; I moved to another suburb of Phoenix only months later; Mormon-run Mesa was simply too corrupt (and drug-ridden).

If my small window into the deference that local police pay to small business in falsely enforcing law that is not really law is correct, it is not difficult to conjecture that the FBI as well as local police may be unduly biased towards, perhaps even de facto working for, large corporations. The sort of unaccountability in accusing a distraught policy-holder of mass murder (even without noticing that she had no record of violence and not even a gun!) and being willing to put her in prison for fourteen years, likely to send the public a message from the large corporations, is consistent with the lack of accountability generally on market participants that are so large and wealthy that even competition is stifled that so enrages consumers and thus prompts anti-corporate politics. The connection can be found in Adam Smith’s claim that one of the main rationales for government is to protect the wealthy from the poor, who would otherwise steal the wealth. Does this hold of the governments in the U.S., or is the public to be served? The official answer may differ from the real answer.

That the governments in the U.S. have allowed companies to become so large as to choke competition without anti-trust law being enforced—something that Adam Smith would not like—is yet another indication of the “under the table” power of large corporations in the United States, thanks in part to unlimited political campaign contributions being legal. Perhaps elected officials were the people delivering the instructions from the health insurance company to the Pennsylvania sheriff in Altoona: Be rough with the guy and don’t let him speak to the media. Push him up against a wall if you want. Grab him by the neck. Show the world what happens if someone goes up against corporate America.  Hence the anti-corporate political movement in a democracy that is premised on accountability rather than plutocracy with impunity.

My main point is that institutionally, or structurally, very large and wealthy private companies, whether corporations or privately held, are incompatible with not only market competition, which ensures fair prices (even at grocery stores after a pandemic), but also political democracy, wherein one person has one vote and thus is just as important as the next. Whether a man on the street or a corporate CEO is murdered, the police-response should be the same in terms of the cost and effort in the manhunt and how the suspects are treated. Innocent until proven guilty means that police violence against a suspect who is not being violent or resistant is itself a crime regardless of how rich the victim’s family or company happens to be. 

The case of the health insurance CEO’s murder in December, 2024 was deliberately not supposed to be a vehicle for getting an anti-corporate message out—with even violence being used to enforce this proscription—but how the Pennsylvania police aggressively treated the suspect unabashedly in public view can be seen as a poster advertising the interlarding of corporate power at the expense of accountability in American democracy. Both economically and politically, it can be asked whether large corporations are accountable in the United States; politically, the same question may be asked of the local police departments in the member states. The American governments in the U.S. could do worse than apply anti-trust law to a variety of markets and apply criminal law to local police departments whose actual paymasters can be characterized proverbially as the man behind the curtain—an allusion to the hidden Wizard in the film, The Wizard of Oz. Then again, perhaps Mr. Smith Goes to Washington is a more pertinent film, as the senator played by Jimmy Stuart filibusters for hours and hours against corruption in his home state.


1. Jessica Parker and Nadine Yousif, “Luigi Mangione Fingerprints Match Crime-Scene Prints, Police Say,” BBC.com, December 11, 2024.
2. Pocharapon Neammanee, “Woman Arrested After Saying ‘Delay, Deny, Depose’ On Call With Insurance Company,” The Huffington Post, December 12, 2024.
3. Ibid.
4. Ibid.
5.Ibid.

Friday, September 13, 2024

Nature Credits in the E.U.

One of benefits of the market mechanism, by which, for example, economic goods are bought and sold, is that self-interest is relied on; people don’t have to be told to buy or sell a product because it can be in their self-interest to do so if the price is right. As an alternative to regulatory standards, a government can create units of pollution-allowance that businesses can purchase so to be lawfully able to pollute in so far as a purchased unit allows. In the E.U.’s emissions trading system, “operators of power plants and factories have to buy tradeable allowances to cover every tonne of carbon dioxide they emit.”[1] Business could buy and sell allowances so as to cover the amount of pollution that is anticipated. In this way, the market mechanism efficiently allocates pollution in line both with the interests of the companies and the public interest—the latter being made concrete in the decision on how much pollution per allowance and how many allowance units to create. Crucially, the company private interests are put within the purview of the public interest; the tail is not directing the dog. In political economies in which political-campaign contributions by businesses are high, especially if unlimited, the tail can indeed wag the dog, such that the public interest is determined by private interests. This is one reason why the Citizens United (2010) U.S. Supreme Court case is so significant. It allows corporations and labor unions to spend unlimited amounts of money on political campaigns and directly on advertisements—both being beneficial to elected officials in positions to curry favor through legislation and regulations favorable to business (or labor). The informal exchanges of political donations and legislation or regulation comprise a market of sorts. So, the market mechanism, which is created or at least regulated by government, can serve for good or ill, from the standpoint of the public interest.  Using the mechanism, such as the E.U. president proposed in 2024, on behalf of ecosystems, is for good rather than ill, and thus using, in effect, the self-interest of farmers could be better than relying on regulatory requirements that farmers expend some money and effort to beef up their local ecosystems.

At a conference on September 13, 2024, a Friday, E.U. President Ursula von der Leyen said, “We need new financial tools to compensate farmers for the extra costs of sustainability and compensate them for taking care of the soil, the land, the water, and the air.”[2] The assumption is that the farmers would not otherwise do so because expending the energy and paying the costs for the externalities would not add to their profits from farming in the short or medium term. The time-value of money too reflects the penchant in human nature for immediate over delayed gratification. To extend the farmers’ “event-horizon” and broaden out their concern to include their vicinity would be the purposes of “the market-based system of ‘nature credits’,” which Von der Leyen hinted “could also be applied beyond the agricultural sector.”[3] This is part of the beauty of the market mechanism: it can be applying to various things, serving various purposes, rather than only pertaining to economic products and services.

Via “nature credits,” a water company could have the incentive as per self-interest to help to take care of a spring that that company depends on, and a fruit company would be more likely to invest in the “essential work of pollinators.”[4] That the language of long-term investment applies raises the question of why farmers in general do not do what manufacturing businesses do as a regular part of business. It would seem that making sure that a principal water source is not lost or that bees stay in the area of the fruit trees would be in the self-interest of the respective companies. Why would compensation by the government be needed to run a sustainable business?  Is the managerial perspective really so delimited that the viability of the business is not included?

Unfortunately, even by 2024, climate change was perceived by many business practitioners still as a gradual and outside process not germane to business. Johan Rockstrom of the Potsdam Institute for Climate Impact Research, said at the same conference, “I can tell you, science is clear today that the ultimate determinant, what regulates the stability of the planet, its ability to stay in a desired equilibrium state is nature.”[5] According to a journalist, Rockstrom was “suggesting that action of biodiversity and climate made sense even if purely pragmatic.”[6] If farmers didn’t yet see it as such, “nature credits” would help render biodiversity pragmatic from an agribusiness standpoint—essentially interiorizing some externalities.

To be sure, even if a private interest broadens out to include some hitherto externalities, that interest is still not the same as the interest of the whole: the public interest. It would still be important to protect the public interest from being captured by a private interest; a large company or an industry that would implicitly presume to be in charge of its own regulation by dictating legislation and regulation to sycophantic government officials should be withstood by them. Even so, expanding the practical purview of private interests is in the interest of the whole, and the market mechanism can be used to make this so.


1. Robert Hodgson, “Von der Leyen Moots ‘Nature Credits’ Market to Avert Ecosystem Collapse,” Euronews.com, September 13, 2024.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.

Friday, February 23, 2024

On the Role of Agribusiness in Global Warming

Agriculture is a major source of carbon and methane emissions, which in turn are responsible for the general trend of the warming of the planet’s atmosphere and oceans. In fact, agriculture emits more than all of the cars on the roads. 10 percent of the emissions carbon dioxide and methane in the U.S. come from the agricultural sector. Livestock is the biggest source of methane. Cows, for example, emit methane. Methane from a number or sources, including the thawing permafrost, accounted for 30 percent of global warming in 2023. As global population has grown exponentially since the early 1900s, herds of livestock at farms have expanded, at least in the U.S., due to the increasing demand.[1] We are biological animals, and we too must eat. More people means that more food is needed, and the agricultural lobby in the U.S. is not about to let the governments require every resident to become a vegetarian. Indeed, the economic and political power of the large agribusinesses in the U.S. have effectively staved off federal and state regulations regarding emissions. It comes down to population, capitalism, and plutocracy warping democracy.


The full essay is at "On the Role of Agribusiness in Global Warming."

1. Georgina Gustin, “Climate Change and Agriculture,” Yale University, February 22, 2024.

Thursday, December 7, 2023

U.S. Anti-Trust Law: Applicable to Amazon?

In September, 2023, the Federal Trade Commission and seventeen states sued Amazon on ant-trust grounds for restraining trade and excessively raising prices on third-party sellers and consumers. Three months later, a leaked internal memo revealed Amazon’s anti-labor strategies of buying off local politicians and gaining reputational capital through well-publicized charitable work. Such work, as an anti-union strategy, demonstrates that the very expression, corporate social responsibility, is an oxymoron, or at the very least a misnomer (i.e., misnamed); a more accurate, and thus revealing, label would be corporate marketing. One effect of the “responsibility” connotation is that companies such as Amazon with mammoth market power could effectively hide strategic efforts in restraint of trade, and thus curtailing competition. Combined with feckless anti-trust prosecution, the result is an American economy that has not lived up to Adam Smith’s theory wherein competition via the price mechanism is necessary for individual self-interests to have beneficial unintended consequences systemically and thus in terms of the public good.

The civil case accused Amazon “of engaging in anti-competitive practices through measures that deter sellers from offering lower prices for products on non-Amazon sites.”[1] Amazon was being accused of deprioritizing listings of products sold at lower prices on non-Amazon sites, forcing merchants to raise their prices on Amazon’s platform and other sites “in order to keep their products competitive on Amazon.”[2] The customers suffer as relevant results of searches are replaced by paid advertisements that favor Amazon’s own brands. Also, the company was charging third-party sellers nearly half of their total revenue as fees for using Amazon’s platform, the result being higher prices for the consumers. The company was also compelling the sellers to use the company’s logistics service in order to qualify for Amazon Prime. With nearly 40 percent of the e-commerce market, Amazon was allegedly flexing its muscle at the expense of competition.

Yet the chairperson of the Federal Trade Commission, Lina Khan, was not asking the court to break up the mammoth company, preferring instead to limit herself to “liability.”[3] I contend that such an avenue falls short as a vehicle for instituting a competitive market. Firstly, a company with market power of nearly half of the e-commerce market can be expected to use its muscle in restraint of trade even while paying out liability claims because the oligopolistic excess-profits (akin to “monopoly rents”) more than compensate for the (tax deductible) expenses. Secondly, I submit that it is utterly unrealistic to suppose that a company with such overwhelming market power will not use it merely because of external disincentives such as civil fines. The use of “sticks” and even “carrots” to get such a company to not act as a profit-maximizer comes up short because such “motivating” tools are tertiary; they do not shake the fundamentals, whereby a non-competitive market is restructured to be competitive and thus composed of price-takers rather than a price-setter.

It is worth expanding on the tactics that an oligopolistic company can use to protect itself from extraneous attempts to fundamentally change the market. We get a glimpse of Amazon’s “play book” from an eight-page memo that reveals how one of America’s largest companies “executes on its public relations objectives and attempts to curtail reputational harm stemming from criticisms of its business. It also illustrates how Amazon [sought] to methodically court local politicians and community groups in order to push its interest in a region where [the company] could be hampered by local moratoriums on warehouse development, and [where the company was] facing resistance from environmental and labor activists.”[4] Knowing the company’s tactics in Southern California can give us an insight into how the company’s management blunts federal legislative action that could break up Amazon itself in order to create a competitive playing field in e-commerce.

In a nutshell, Amazon’s strategy was to create the illusion of on-going charity work and to pay off elected government officials to, among other goals, resist unionization of the company’s workforce and restrictions on where the company can build. Specifically, the management “’cultivated’ Michael Vargas, the mayor of the town of Perris, through pandemic-related donations” ostensibly to “support the region,” but actually to buy off his support for new warehouse construction.[5] This is proof that companies use money even aside from political campaign “donations” to get elected representatives to affect public policy favorably to the companies themselves. If this is so locally, we can be assured that companies as large as Amazon wouldn’t withhold the tactic from being used to buy federal lawmakers, whose power could include breaking up the company.

In regard to Amazon’s corporate “social responsibility” programs, the leaked document includes plans to have employees drop off food to the Los Angeles Food Bank “in big media moments that are broadcasted/posted.” The illusion of ongoing charitable work would of course work to the company’s advantage in public relations. As the “memo suggested curating similar moments during a back-to-school donation event and a [Christmas] toy drive, where drop offs occur and Amazon executives, as well as groups who receive grants from the company, ‘speak about Amazon’s impact” to the media present, even as the company planned on cutting off groups that “did not result in measurable positive impact,” charity was clearly viewed by Amazon’s managers as a promotional tactic.[6] The false societal image of a benevolent oligopolistic company could be expected to shield governmental efforts to break up the company and perpetuate the erroneous assumption that civil liabilities (i.e., verdicts against the company) are enough to safeguard consumers because the company’s management is benevolent.

In conclusion, the Federal Trade Commission shirked its governmental mandate to enforce the Sherman Antitrust law from the onset of the litigation, thus hampering the ability of the judiciary to order an effective remedy. In a large industry in which one company has 40 percent market share, and that company actively buys government officials and strategically uses public relations, the danger is not just to competitive markets, but also to American representative democracy and the rule of law itself. It is, I submit, no accident that the chairwoman of the FTC did not include breaking up Amazon as a remedy. We need only look at the company's strategially placed political contributions to surmise which elected officials might have put political pressure on the FTC. The company’s memo reveals that Amazon uses its extraordinary wealth to bend public policy away from the public good, like a black hole in space bends even space itself, to protect the company's viability by donating directly or indirectly to elected officials. I submit that plutocracy, rather than mob rule, is the greatest threat to American democracy.  At the very least, private wealth knows how to protect itself politically, and even how to cover its tracks under the patina of corporate social responsibility.


1. Haleluya Hadero, “Amazon Sued by FTC and 17 States over Allegations It Inflates Online Prices and Overcharges Sellers,” APNews.com, September 26, 2023 (accessed December 7, 2023).
2. Ibid.
3. Ibid.
4. Haleluya Hadero, “Amazon’s Internal Plans to Advance Its Interests in California Are Laid Bare in Leaked Memo,” APNews.com, December 7, 2023.
5. Ibid.
6. Ibid, for the quoted material, which is both from the article and the memo itself.