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From: fagin@ucbvax.ARPA (Barry Steven Fagin)
Newsgroups: net.politics
Subject: Free markets and monopolies (reply to Charley Wingate)
Message-ID: <9558@ucbvax.ARPA>
Date: Thu, 1-Aug-85 18:28:18 EDT
Article-I.D.: ucbvax.9558
Posted: Thu Aug  1 18:28:18 1985
Date-Received: Sat, 3-Aug-85 04:16:31 EDT
References: <974@umcp-cs.UUCP> <7800361@inmet.UUCP> <1038@umcp-cs.UUCP>
Reply-To: fagin@ucbvax.UUCP (Barry Steven Fagin)
Organization: University of California at Berkeley
Lines: 32

>>> = Charley Wingate
>> = Nat Howard
> = CHarley Wingate again

>>>The historical [record] rather plainly shows that markets tend to drift away 
>>from perfect
>>>competition towards monopolies and oligopolies as a result of natural
>>>forces, unless there are restraining forces to oppose this.  
>
>>Please show us where the historical record indicates that markets tend
>>to drift away from competition.  
>
>Well, recall when US Steel had a monopoly in the steel industry?  When 
>Standard Oil was rapidly gobbling up all the oil companies in the country?
>When the railroads fought to destroy each other?  And we mustn't forget Ma
>Bell.

Actually, Charley, all four examples you cite were the result of
*governmental* intervention on behalf of the affected company, as
those involved were able to accomplish politically what they could not
accomplish economically.  Four articles follow in net.politics
discussing each of the examples you mention: U.S. Steel, Standard Oil,
the railroads, and Ma Bell.  In each article I will shamelessly steal
material from Gabriel Kolko's book *The Triumph of Conservatism*.
Kolko is a historian at the university of Toronto.  He writes from
the perspective of the Left and consequently hates it when his work is used to 
support libertarian positions, but tough on him.

--Barry

-- 
Barry Fagin @ University of California, Berkeley