Professor Mordecai Kurz has been studying economics for longer than many of us have been alive. At 91, his latest book is hitting the shelves this spring. Kurz’s work on monopoly wealth is at the heart of the book, and is also at the heart of what’s shaking our democracy to its foundations.
Since 1980 or so, wealth hasn’t just funneled upward dramatically. apital has concentrated into the hands of a few monopolistic corporations that are very quickly assuming the levers of societal power.
In our mythical understanding of capitalism, we see fierce competition allowing small businesses to thrive, while smaller businesses behind them innovate in ways that make them more competitive. It’s a ratcheting upwards, where the consumer and the worker can make great strides alongside the corporations that are doing battle in the market.
But it’s a fairytale, says Kurz, especially in the tech industry.
Big tech is actually anti-competitive in a novel way. As capital flows into the monopoly players, they continue to consume the start-ups that might one day challenge them. They own the entire stack, so to speak. They own the software that runs on the machines; they own the machines that are built in the factories; they own the factories that build the intellectual property; and they own all the IP.
Kurz estimates that most wealth in the United States is monopoly wealth (by a long shot). This is a blow to labor. It’s a blow to consumers. And it’s a critical threat to democracy.
In this interview, Prof. Kurz explains why our current form of capitalism is destroying us, and prescribes a solution.
