The Curse of Bigness

 

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A portrait of Louis Brandeis on the cover of Time magazine on October 19, 1925.

Before he was an associate justice on the Supreme Court of the United States from 1916 to 1939, Louis Brandeis was a progressive lawyer fighting the big monopolies, or trusts, of Gilded Age America. He termed the corrosive effect on democracy of unrestrained business practices “The Curse of Bigness”, and after he joined the Supreme Court he maintained his interest in restraining business interests from trampling the rights of ordinary citizens.

Now President Biden has appointed Lina Khan to the chair of the Federal Trade Commission, and her appointment signals a return to the principles of Louis Brandeis. Lina Khan is an antitrust lawyer and legal scholar who, as a student at Yale Law School in 2017, wrote an article called Amazon’s Antitrust Paradox. The article drew widespread attention for her ideas about how the conventional wisdom of the past 50 or so years regarding regulation of the marketplace based on consumer prices no longer applied in the age of Amazon, a company willing to engage in predatory pricing and use vertical integration in order to stifle competition and monopolize the marketplace.

A profile of Lina Khan in Time from October 17, 2019.

 

Prior to Ms. Khan’s appointment, another antitrust lawyer and legal scholar, Tim Wu, joined the Biden administration as a Special Assistant to the President for Technology and Competition Policy on the National Economic Council. Mr. Wu is known for helping to write the first network neutrality rules in work for the Federal Communications Commission in 2006. In 2018, he wrote The Curse of Bigness: Antitrust in the New Gilded Age, a book which paid homage to Louis Brandeis and his antitrust work of the Progressive Era.

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A Climate Strike protester with an anti Bezos sign in London on February 14, 2020. Photo by Flickr user Socialist Appeal.

With these two people now in key positions in the federal government, perhaps efforts to rein in, or even bust up, big technology companies such as Amazon, Google, Apple, Facebook, and Microsoft, will finally be undertaken seriously and with persistence. In the past, these Big Five technology companies have largely escaped with slaps on the wrist after fitful investigations into their practices.


Supreme Court Justice Ruth Bader Ginsburg answered questions from Brandeis University students at an event in January 2016 commemorating the 100th anniversary of Louis Brandeis being nominated to the Supreme Court by President Woodrow Wilson.

 

As Louis Brandeis understood, and as is apparent from the writings of both Lina Khan and Tim Wu, setting regulatory boundaries for these behemoth businesses not only ensures they act fairly in the marketplace, but protects democracy from their tendency to squash individual liberties when they conflict with their self-interest. And the bigger and less competitive these companies become, the more their self-interest consumes everything in their vicinity, like a beast that can’t stop growing and must swallow anything in its way.
— Techly


An unofficial remix of the 2021 songs “Bezos I” and “Bezos II”, written and performed by Bo Burnham for his album and Netflix special, Bo Burnham:Inside. Warning: foul language.

 

The Web

 

“Near the Day of Purification, there will be cobwebs spun back and forth in the sky.” — a Hopi Prophecy

Elon Musk’s SpaceX has sent hundreds of internet communications satellites into low Earth orbit, and has plans to launch thousands more such satellites in the near future. Other companies, among them Jeff Bezos’s Amazon, have similar plans. Within the span of several years, the number of satellites launched into orbit could double from the amount that have been launched since the beginning of the Space Age in 1957. The clutter could interfere with astronomers’ observations and measurements, and even with casual enjoyment of the night sky by lay people.

 

A fleet of East Indiamen at sea
“A Fleet of East Indiamen at Sea”, an 1803 painting by Nicholas Pocock (1740-1821).

There are terrestrial alternatives to webbing near Earth space with tens of thousands of satellites in order to get internet service to rural communities around the world. in the United States, rural electric cooperatives have worked steadily for years to overcome infrastructure and regulatory obstacles to provide internet service along the last mile to their members. It is the big telecommunications and cable television companies, with their friends in big government, that have often made operations difficult for alternative internet service providers. Even when the local governments of towns and small cities try to cooperate with small internet service providers, their efforts are often undercut and overruled by larger government entities working at the behest of large corporations that will brook no competition.

Now comes SpaceX’s Starlink and Amazon’s Project Kuiper, backed by their founders’ deep pockets and enabled by their existing links to big government, links that will only strengthen and deepen as the companies take over near Earth space and provide launching and communications services to government agencies. The partnership with government may even prove to be the primary consideration for both companies, and providing internet service to private individuals a secondary, though lucrative consideration. The partnership could develop into a Space Age equivalent of the British East India Company’s close association with the British Empire, which saw the two entities merging in so many areas public and private that eventually one could hardly tell where one left off and the other began.



In addition to the Space Age, the modern era has come to be known as the Information Age. The internet via the world wide web has become the chief vector of information in these times and, as many have often observed, information is power. In the days when the British East India Company held sway along with equivalent companies sanctioned by other European powers, trade goods from far off lands were the valued currency that governments sought to procure and protect. Governments guarded the trade routes to and from the far off lands as well as the lands themselves. Over time, the various East India Companies adopted their own paramilitary arms to protect their interests. Similar relationships could develop in the coming years as companies seek the help of government in protecting their interests in space in return for providing essential services.

Why should SpaceX, for instance, invest hundreds of billions of dollars in the infrastructure needed to establish colonies in space with the potential for enormous profitability in the long run without being assured tens of billions of dollars in government contracts in the short term and the perpetual cash cow of providing internet service to billions of people every day? Look up in the night sky for answers and soon enough you’re likely to see the winking reflections off tens of thousands of satellites, glinting like dew along the strands of a spider’s web.
— Techly



The last scene of the 1982 meditative documentary Koyaanisqatsi, directed by Godfrey Reggio, with cinematography by Ron Fricke and music by Philip Glass.

 

Enough Is Never Enough

 

Amazon.com, the internet’s everything store, recently announced it will be opening two secondary headquarters, one in the New York City borough of Queens, and the other in the Arlington, Virginia, area near Washington, D.C.. City and state officials in both locations offered Amazon enormous benefits at taxpayers’ expense, though the exact amounts are unknown because officials claim they have a competitive advantage by keeping their bids secret.

 

Nonsense. It’s the taxpayers’ money and they have every right to know how officials spend it. The whole nationwide competition for Amazon’s secondary headquarters was a yearlong sham and circus, the kind of municipal debasement and looting that has become far too common as states and cities are pitted against each other for the dubious prize bestowed on them by corporate behemoths relocating or opening new places of business.

Caricature of "Organized Big Business Interests"
Caricature of “Organized Big Business Interests” illustrated by John Miller Baer (1886-1970) for part of the November 17, 1919 cover of The Nonpartisan Leader. Nearly one hundred years later, a caricature of a big business interest is more likely to appear trim and fit, wearing jeans and a turtleneck or other informal clothing.

Amazon is to labor practices and corporate citizenship as an internet business as Walmart is to labor practices and corporate citizenship among brick and mortar stores, which is to say they are leaders in their respective fields in abusing their lowest tier workers and siphoning funds away from local communities. Both Jeff Bezos, head of Amazon, and the Walton family at the head of Walmart are obscenely rich. They got that way because of their cleverness at exploiting the properties mentioned above, not because of their own virtuousness and hard work as they would have everyone believe. There are millions upon millions of people who are every bit as virtuous and hard working as Mr. Bezos and the Walton family, probably more so, and they are not obscenely rich, or even well off.

 

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Buy Nothing Day demonstration in San Francisco, California, in November 2000. Photo by Lars Aronsson.

Mr. Bezos and others like him are obscenely rich because they are, among their other qualities in starting and running a business, both good and bad, obscenely greedy. Shoppers visiting the Amazon website cannot be blamed for taking advantage of the low prices and good service. That would be a kind of “blaming the victim”. Besides, it is all too easy for shoppers to forget about or remain ignorant of Amazon’s bad labor practices and exploitative corporate citizenship since it does those things mostly out of sight and therefore out of mind, a benefit it has as an internet company that Walmart does not have as a brick and mortar outfit.

Shoppers might fairly ask themselves, however, that even if they are not entirely complicit in sustaining Mr. Bezos’s greed, perhaps their own much smaller proportion of greed is something worth examining. It is a form of greed that drives most purchases from Amazon. Amazon sells some necessities such as groceries, but then so do stores at neighborhood shopping centers throughout the country. Most of what Amazon sells are not necessities. They are convenient luxuries, great or small, delivered to the shopper’s door. With the enormous emphasis on shopping around Thanksgiving all but swallowing up the holiday and its meaning, people might want to step back from the shopping cart, both real and virtual, and reflect on how their own petty greed feeds the monstrous greed of Jeff Bezos and his fellow billionaires and millionaires, while around the world millions upon millions of decent people go hungry.
— Techly