Discussion about this post

User's avatar
J. Michael Wahlen's avatar

Thank you for asking! Industry concentration in the US, and its relationship to progressivism is a big topic, but the gist is that American industry became really concentrated after WWI and the Great Depression, leading to the "organizational man" and Mad Men era, led by GM, DuPont, IBM, etc. Progressives were ambivalent about this, as you note; they liked small firms, but didn't like competition and really believed in technocratic managers.

Towards the end of the 20th century, concentration shrank before increasing again with tech stocks. One key difference, however, is that in the past, really large firms also employed a ton of people, whereas today, a place like Google creates much larger revenue with many fewer employees. And, founders like Mark Zuckerberg have diluted shareholder rights a lot, giving him a lot more power than past CEOs.

Expand full comment
2 more comments...

No posts