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Walter Clark's avatar

Excellent perspective on what aspects of populism brought Trump to power. Reagan's firing of 11,000 air traffic controllers reveals a dilemma about government which political parties don't allow themselves to see. While it is easy to see that without competition, monopolies appear and that they create problems in society. It is not as easy to see that government monopolies have problems too. In the Reagan example, the monopoly that is the air traffic control system and government-maintained-monopoly that the air traffic control union enjoys. The easiest to see example of the former is a developer owning an entire valley and only his road allows transport through it. When there is a monopoly maintained by the government they are constrained by the government in a mechanism which can only be described as "political." And it works, normally. And it worked for Reagan.

Note however, --and this is key-- there are some monopolies that are more easily limited by politics than others. And that includes the government-monopoly on regulation of natural monopolies in the market place. Nationwide, municipally-owned utilities supply about 15% of all retail electricity. The remaining 85% is dominated by massive investor-owned utilities which have a monopoly. The latter being regulated by one form or another of the state --which of course is a monopoly itself. There is very little controversy in that regulated market or even when there is only government such as flood control. The key category of a government monopoly that is self-limiting is where the object being managed is physical, measurable, and finite. Flood control is a good example because the river, watershed, rainfall history, etc. put natural boundaries around the job. Other examples include sewer, traffic signals, weights and measure standards. Compare that to the welfare state which has no meter. It is entirely run on a "seems-like-enough” control mechanism. And that's why there is no bound to the size of the welfare state and the military state and the eventual takeover by a populist tyrant.

Carrie Gaye's avatar

Thank you. A very good summary of these events. I had no idea about The Fairness Doctrine, which is surely something that should be considered essential in any democracy. Because above all, it seems that a one-sided media is as powerful - if not more powerful - than any leader. So much of what's described in the article has happened here in the UK.

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