ipl-logo

Argumentative Essay: Private Monopolies In The United States

1203 Words5 Pages

The freedoms that are hindered by these entities are the freedom to enter or not enter into a particular transaction by denying them any alternative and the freedom to not be affected by transactions in which you do not partake (Friedman, 1975). A monopoly deprives the consumer of the freedom of exchange; the consumer is forced to transact with a sole seller. Monopolies themselves come in different forms and deciding which monopoly will do less harm to the people, the monopolies need to be studied on a case-by-case basis. Most monopolies can be dealt with anti-trust laws to prevent them from coming to existence. Furthermore some monopolies need the government to stop supporting them in order to terminate its existence. Freidman further explains …show more content…

The reasoning stands that regulation of a monopoly obstructs competitiveness, stunting the industry’s growth. It is a competitive market that creates innovative solutions and furthers human progress. Friedman’s main example is the US railway, where the 19th century had great need for the railway system, yet with the emergence of cars and planes, railroads nearly became obsolete. Thus not only do monopolies hinder the freedom of choice they also hinder the industry by depriving it of innovation. Notably, Friedman clarifies that each case of a monopoly needs to be studied independently. Additionally, monopolies regarded as essential and sizeable in power may need public regulation or ownership instead of private (Friedman, 1975). Under Freidman’s definition of “monopolies and similar market imperfections”- the absence of alternatives, this paper finds it empirical to consider the government-supported institutions of Fannie Mae and Freddie Mac as monopolies. In which there was an improper use of government intervention and a lack of proper intervention to tackle the monopoly issue. This will be discussed later in the

Show More
Related
170 Words | 1 Pages

Justin Clement APUS DBQ Big businesses controlled the economy and politics throughout 1870-1900. They were in control of the prices for certain items because they destroyed their smaller competitors until there was no competition left. They had much sway over politics and took away the people’s say. As we can see from Document A, between 1870-1899, the price for food, fuel, lighting and living decreased with the emergence of big businesses.

Read More
322 Words | 2 Pages

The days of monopolizing, by strong arming your competition are long gone. In Chapter 8 “Antitrust” by David Cluchey and Edward David analyzed how it all began and moving forward where were going. In the late 1800s the norm was to practice common law in a free market. After the civil war, the united states experienced a substantial rapid industrialization. With the rise of a more complex economic system, came individuals that could increase their wealth by becoming powerful.

Read More
425 Words | 2 Pages

The Gilded Age was a time of good and bad economic growth. In America during post civil war times, years 1870 to 1900, the nation was prospering on the surface, but was corrupt underneath; large businesses took control of the economy, changed society, and influenced politics nefariously. By the end of the nineteenth century, monopolies and trusts exercised a significant degree of control over key aspects of the American economy. Carnegie used vertical integration to take over the steel industry. He then set up a mega trust with Rockefeller, who was in the gas and oil industry, JP Morgan, who was a banker, and Vanderbilt, who was high up in the railroad industry.

Read More
763 Words | 4 Pages

Competition keeps companies striving for the highest quality products for the lowest price because they want to attract customers. However, if people had no choice where to buy their car, it would not matter what a company sold. Additionally, if there was no competition, there would be no way to benchmark your products for quality or technological advancements. Still using the car company example, the car industry would be like it is in Cuba where everyone drives cars from the 70’s, because that is all they

Read More
1277 Words | 6 Pages

This also causes involving price-fixing and market-division arrangements. It usually involves the private parties and the government which would also be the Department of Justice or the Federal Trade Commission. This is a firm has done something anti-competitive in order to stay ahead in the game or stay ahead in the monopoly. Monopolies without any anti-competitive behavior aren’t usually illegal. An example of these cases was in 1911 and the Supreme Court ruled abuse on John Rocketfeller's Standard Oil Co. because they had abused its monopoly power to keep other companies from going against it and it also divided into thirty-four separate companies.

Read More
408 Words | 2 Pages

During the Progressive Era there were multiple of changes occurring that people became overwhelmed. New resources in the oil market, industrialization, fights for equality. There were many factory jobs, however, no one to stand up for the workers. So of course people will turn to their government for help, the power house of the country. However, even the government was picky in what they helped with.

Read More
604 Words | 3 Pages

In June 21, 1973, Miller was convicted on the ground of advertising the sale of what was considered by the court as adult material. He was found guilty as he broke the California Statute. The California Statute forbids citizens from spreading what is considered offensive in societal standards. The question that was being asked was that if the action of Miller was Constitution thus is protected under the law. However, he lost the case due to a vote of 5 - 4.

Read More
1121 Words | 5 Pages

In a capitalist environment, at least where corporations have been concerned, the government should neither intervene or regulate the open market. In fact, the essence of the capitalist economic system is to create an environment where the free market would be able to dictate itself. Regardless of the system’s original intentions, there have been cases globally and throughout time where government intervention has been necessary — cases where the general public itself has been affected negatively by corporate abuse of the market. For instance, the United States’ public-corporate relationship throughout the late nineteenth century and early twentieth century. Throughout this period, which was known as the Progressive Era, industrial America

Read More
684 Words | 3 Pages

The Commerce clause refers to Article 1, Section 8, Clause 3 of the United States Constitution, which gives Congress the power “to regulate commerce with foregin nations, and among the several states, and with the Indian tribes”. This clause is one of the most fundamental powers delegated to congress by the founders. It has helped to seprate the powers between the federal governemtn and the states, along with the branches of governemtn and Judiciary. In simpler terms the commerce clause was to help regulate commerce among navigable waters.

Read More
1003 Words | 5 Pages

While some Americans blame the government for it being undemocratic, the elected officials have provided us with evidence that America is undemocratic. An ideal democracy is how the government puts the people’s interest before the businesses interest. In Lindblom’s story “The Market as Prison”, it introduces a mechanism called the automatic punishing recoil mechanism (APRM). This provides businesses to have a privileged position in society.

Read More
1971 Words | 8 Pages

The period from 1865 to 1900 was characterized by an astronomical boom in industry and manufacturing, economic growth for the rich, financial turmoil for the poor, and political corruption. As a result, the era has been named “The Gilded Age.” Just as something gilded is gold on the outside but worthless metal on the inside, these years seemed prosperous from an outside perspective, when in reality, the wealth gap was increasing at an alarming rate and big business had power over government officials. As a result of this, a lot of federal legislation was influenced by monopolies and often catered to the desires of businessmen. Since regulation of certain business practices would cause these trusts to lose money, Congress shied away from regulating

Read More
1215 Words | 5 Pages

Along the same line of thinking for protecting the freedoms of the people, the government creates and enforces the law of the market but should not directly participate in the game (Friedman, 1975). Intervention as a discrepancy from Friedman’s theory is understood as the Federal Reserve keeping interest rates low prior to the crisis. This will be discussed later in the

Read More
1249 Words | 5 Pages

Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.

Read More
461 Words | 2 Pages

America is a big superpower, a force to be reckoned with, and a corporate country. America is built upon freedom and money just like anywhere else. But with the way I think that were going, that’s the only thing America will be in the future. And the American dollar will be worth less and less, and the economy will crash more and more. Like I said earlier America is a corporate country based upon cash.

Read More
1848 Words | 8 Pages

The oligopoly market is set up in a way so that competitors can survive because each is unique and there are so few competitors that they are virtually indispensable even if some ethics atrocity

Read More

More about Argumentative Essay: Private Monopolies In The United States

Related Topics

Open Document