Monthly Archives: March 2019

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Will Elizabeth Warren Take on the Biggest Monopoly of All?

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Puck monopoly

For a “progressive” presidential candidate, US Senator Elizabeth Warren (D-MA) is remarkably, well, conservative. Her proposals are neither new nor of the “democratic socialist” variety.  In fact, her aim is, as Matthew Yglesias puts it at Vox, “to save capitalism”  with stock proposals from the first half of the last century.

Much of her campaign platform co-opts Franklin Delano Roosevelt’s  1930s “New Deal” emphasis on social welfare, job creation, infrastructure, and highly progressive taxation to pay for it all — solutions she considers proven, for problems she considers similar.

Her latest proposal, though, takes an earlier Roosevelt as its model. Like  “Trust Buster”  Teddy Roosevelt, she wants to use regulation and antitrust enforcement to “break up monopolies and promote competitive markets.” Her initially announced targets for the idea included Facebook, Google, and Amazon. A couple of days later, she added Apple to  the list.

Interestingly, in her search for monopolies to slay, she ignores the biggest, most powerful, and most lucrative monopoly in America: The US government.

In 2020, the federal government expects revenues of about $3.4 trillion.

That’s more than 60 times what Facebook brought in last year. 25 times as much as Alphabet’s 2018 revenues (Alphabet is Google’s parent company). More than 14 times Amazon’s total 2018 take. Nearly 13 times Apple’s haul.

And then there’s market share. No one really has to do business with Facebook, Google, Amazon, or Apple. There are numerous alternatives to the offerings of each, and many consumers choose those alternatives.

Uncle Sugar, on the other hand, boasts 100% market share for his offerings. You’re required to be his paying customer whether you like it or not. Many of the alternatives are outright illegal, and among the ones that aren’t, you’re required to pay for them in addition to, not instead of,  the federal government’s services.

That’s the very definition of “monopoly.” And it’s the monopoly Elizabeth Warren wants to serve as CEO of.

Is Senator Warren is serious about “breaking up monopolies” and “promoting competitive markets?”

If so, I look forward to her proposal for breaking up the federal government and allowing real alternatives to compete for its market share.

A good start would be 100% federal tax deductibility for the purchase of private sector services that replace the government’s offerings, or a pro rata clawback for binding agreement to not use a particular government service.

Absent such a proposal, seems to me she’s just another greedy monopolist looking to suppress the competition.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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Chelsea Manning: No Good Deed Goes Unpunished Again

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Lady Justice (MaxPixel, CC0)

One of the 21st century’s greatest heroines is behind bars again, held in contempt by federal judge Claude M. Hilton for refusing to help prosecutors trump up charges against the journalists who published information she paid dearly for giving them.

Chelsea Manning spent more than six years in prison —  854 days of it in pretrial confinement, violating the military’s “speedy trial” maximum of 120 days — for the fake “crime” of showing the American people evidence of actual crimes committed in our name by the US government.

President Barack Obama commuted her sentence three days before he left the White House. That, however, turned out not to be the end of her mistreatment at official hands.

Manning, who testified about  her interactions with WikiLeaks during her illegal 2013 court-martial, refuses to do so again before a grand jury targeting WikiLeaks and its founder/leader, Julian Assange, for their work in bringing hidden truth to light. Under Hilton’s order, she may be held for up to 18 months, or until the grand jury’s term ends, or until she gives in. Her history says she won’t do that.

Grand juries usually function in harness to the wishes of prosecutors. A defense lawyer famously told the Rochester Democrat and Chronicle in 1979 that “the district attorney could get the grand jury to indict a ham sandwich if he wanted to.”

But in actuality, grand juries enjoy sweeping powers to look beyond what prosecutors show them. Should that ham sandwich — or that prosecutor — happen to attract their negative notice, they can indict the sandwich, or the prosecutor, whether the prosecutor likes it or not.

Federal prosecutors and judges are weaponizing the grand jury system to attack freedom of the press and freedom of information in support of a fortunately dying ethic of government secrecy. This particular grand jury should punish that behavior instead of rewarding it.

The grand jury should indict federal prosecutors Tracy Doherty-McCormick (who represented the government at the contempt hearing) and Gordon D. Kromberg (who requested the Manning subpoena) as well as their bosses for, among other crimes, conspiracy against rights (US Code 18, Section 241) and deprivation of rights under color of law (US Code 19, Section 242).

In the meantime, those who value truth, justice, and the American way owe Chelsea Manning a massive debt. One way to partially repay that debt is to contribute to her legal fund at https://actionnetwork.org/fundraising/chelsea-manning-needs-legal-funds-to-resist-a-grand-jury-subpoena. I hope you’ll join me in doing so.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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Don’t Panic: The Retail Apocalypse Isn’t Disaster, It’s Progress

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Grocery Cart by Oleg Magni CC0 via Pexels

In the first week of March, big retail chains announced more than 1,100 planned store closings. That, writes Hayley Peterson at Insider, brings the number of planned US store closings for 2019 to more than 5,300.

The Retail Apocalypse is here, and it has consequences.  Including, reports Krystal Hu for Yahoo! Finance, 41,000 retail jobs cut in January and February.

Yet the US economy recorded a net gain of 20,000 total jobs each in January and February, its 101st straight month of job gains.

The economy is slowing down a bit, and we don’t know yet what consumer spending looked like for January (the Commerce Department was delayed in issuing that report by the federal “shutdown”), but people haven’t stopped and won’t stop buying food, clothing, electronics, etc. Many Americans are tightening their belts for various reasons, but that on its own doesn’t explain the Retail Apocalypse.

What does explain it? Progress.

Nearly 30 years after it became widely publicly accessible, the Internet is in the final stages of killing off physical retail as we once knew it. But it’s not killing the economy.

How much stuff do you buy from Amazon or other online retailers (some of them formerly entirely brick and mortar establishments) that you used to have to hunt down in a physical store?

If your family is anything like mine, the answer is “a lot.” And your needs are met, more conveniently and often at lower prices, by a few humans packing boxes in warehouses instead many humans stocking helves, assisting customers, dragging items over price scanners, and bagging them.

Even if you pick your purchases up at a physical store, there’s a fair chance you ordered them online and had them waiting for you when you arrived.  More convenient for you, less labor required at the seller’s end. I’ve done that twice in the last 24 hours.

At some point in the early 20th century, if the reporting mechanisms we have today had existed, we’d have read panicked  accounts of the Horse and Buggy Apocalypse. The automobile caught on.  Purchases of  surreys with the fringe on top plummeted. People in old industries had to find new jobs. But everyone benefited as it got faster, easier, and cheaper to move people and things around.

In the last few decades we’ve experienced Fax Machine Apocalypses (thanks, email), Album on Vinyl and Cassette Apocalypses (thanks, CDs, MP3s, and streaming media), and a thousand other changes of direction in what we buy and how we buy it.

The world didn’t end.

The current “apocalypse” won’t end it either.

Yes, this next model of commerce will mean difficult transitions for some workers and companies, along with other social dislocations we haven’t noticed or even thought of yet.

But if past performance is indicative of future results, it will also mean we get more of the stuff we need, more new stuff we didn’t even know we wanted, cheaper and faster, along with new opportunities.

Change is scary. But it’s also inevitable. And usually for the better.

Thomas L. Knapp (Twitter: @thomaslknapp) is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

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