Raphael ThysFor 40 years, Big Meat has openly colluded to rig prices
A long-overdue antitrust beatdown for Agri Stats.
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9 min read
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2 days ago
Next weekend (October 7–8), I’m in Milan to keynote Wired Nextfest.
Noted socialist agitator Adam Smith once wrote, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the publick, or in some contrivance to raise prices.”
Smith was articulating a basic truth: when an industry grows concentrated, it grows cozy. Cultural differences between dominant firms are homogenized as top executives move from company to company, cross-pollinating attitudes and approaches. Ambituous, firm-hopping workaholic top brass make all their friends at the office, and so their former colleagues from one or two jobs back remain in their social circles.
Once an industry consists of half a dozen firms, the people running those companies constitute an incestuous financial polycule. They are executors of one anothers’ estates, best men and maids of honor at one anothers’ weddings, godparents to each others’ kids. They play on the same softball teams and take family vacations together.
It would be heartwarming if it wasn’t so costly to the rest of us. Remember Smith’s maxim: “the conversation ends in a conspiracy against the publick, or in some contrivance to raise prices.” Class solidarity among corporate executives forms a united front to screw us in every conceivable way, from corrupting our politicians to maiming and cheating workers to gouging buyers.
That’s the basis of American antitrust law. When Robert Sherman was stumping for the passage of the Sherman Act, America’s first major antitrust law, he thundered “If we will not endure a King as a political power we should not endure a King over the production, transportation, and sale of the necessaries of life. If we would not submit to an emperor we should not submit to an autocrat of trade with power to prevent competition and to fix the price of any commodity”:
https://pluralistic.net/2022/02/20/we-should-not-endure-a-king/
Or rather, that was the basis of American antitrust law — until the Reagan era, when the fringe theories of the Nixonite criminal Robert Bork…