Dave Dayen’s new book “Monopolized” shows how Buffett has normalized monopoly power.
By Matt Stoller and cross-posted from mattstoller.substack.com.
Journalists have always served an important function in addressing corporate power. The great anti-monopolists of the 1880s were journalists such as Henry Demarest Lloyd, muckrakers whose words gave voice to a movement seeking to reign in corporate power.
Journalist Dave Dayen is an heir to this tradition. He’s the executive editor of one of the most important political magazines today, the American Prospect. He did groundbreaking (and lonely) journalism on foreclosures and financial corruption throughout the Obama years, and his 2016 article on antitrust in The New Republic laid the groundwork for Elizabeth Warren’s key speeches on the issue that rocketed the importance of monopoly into the political stratosphere.
For today’s post, I’m going to do an interview with Dayen on his new book, Monopolized: Life in the Age of Corporate Power. Monopolized is a mix between a business book and a travelogue, a set of stories about people living under the control of various powerful corporate entities, from Wall Street to Amazon to prison and the military. There’s also a roadmap for how to fight back, and Dayen profiles Israeli anti-monopolists who successfully did just that. One interesting aspect of Monopolized is that Warren Buffett is a silent presence throughout, profiting quietly in the background from virtually every monopoly Dayen describes. We don’t often hear of Buffett as a great monopolist, but that’s what he actually is. So in this interview, that’s who we focused on.
If you’re interested in a sweeping but detailed take on the modern landscape of corporate power, you should buy a copy of Dayen’s Monopolized; it’s enormously well-researched, and you will know more about corporate power after you are done. I learned a lot, even though studying monopoly is what I do.
Thanks for writing this excellent book. I want to get into Warren Buffett, but first I want to ask a basic question that I hear a lot in policymaking circles, which is that the problem of monopoly is just too complex for voters to really get. You wrote this book by traveling around the country and reporting stories of people dealing with corporate power. Did you get the sense that the public at large understands the problem of monopoly and concentrated finance?
People know that something is terribly wrong. They might not be able to articulate it using technocratic antitrust jargon, like no one mentioned the Herfindahl–Hirschman Index in terms of market share, but they understand the system is rigged. When I talked to a woman who is renting a home and she got an alert for her own home being put on the market without her knowledge because the house is owned by a private equity giant, well, she knows that something is terribly wrong. She’s a big Trump supporter, but now hates the private equity firm Blackstone, which she also knows is full of Trump donors.
Another woman I interviewed, she lives in Tennessee and classifies herself as a libertarian, she knows something is wrong. Her husband has diabetes, and she’s tracking his blood sugar on this wearable device. If she gets an alert on her phone, when he has low blood sugar, she goes and gives him a little piece of chocolate. Turns out there was a gap in her wifi conductivity, because she lives out in this rural area and they are literally forbidden from getting broadband by a law that the telecom industry got passed. She tells me she saw a 15-minute gap in her tracking, and found her husband slumped over his chair because that’s the moment in which he crashed. She calls herself a libertarian, but she knows something is terribly wrong with the governing structures of the economy and the power of these corporations that have insinuated themselves to American life.
People might not be able to call it monopoly power, but they know something isn’t working…