“The Myth of Capitalism” is a well written study of our evolving society that any business person should read to understand the larger view of where current trends are leading business and society.
Tepper and Hearn connected a lot of dots I have seen with events and trends that have occurred over the last forty years. As an investor and a capitalist, I found “The Myth of Capitalism” invaluable to understanding the current environment and understanding potential future events.
One of the base tenets of Capitalism is competition. Capitalism thrives on the notion that success is directly proportional to the efforts of those who compete. There is nothing more motivating than the belief that we are in control of our own destinies and we can decide where we want to go through our own efforts.
With many industries consolidating to the point where three to six companies dominate 70 to 90 percent of their respective industry’s activities, the risks to Capitalism are growing and real. The choices of who we buy from and who we work for are shrinking as the consolidation of industries marches forward.
While monopolies have been the primary impetus of antitrust law in the past century, oligopolies can and do have dramatic negative effects upon Capitalism. It is similar to a sport that certain players “play the boundary lines” without being called out. Monopolies are definitely out of bounds without regulation, but oligopolies are those plays that are not technically out of bounds, but brush up against unfair advantages.
Tepper and Hearn do an excellent job discussing the events of the last forty years that have brought us to this juncture of diminishing competition. They adeptly support how the effects of these events have resulted higher prices, reduced innovation, lower wages and concentrated wealth among others.
It is a read that is well worth your time.