Tag Archives: bigness

Empires, bureaucracies and religion arise from war : Nature News & Comment

25 Sep

War drove the formation of complex social institutions such as religions and bureaucracies, a study suggests. The institutions would have helped to maintain stability in large and ethnically diverse early societies. The study authors, who tested their theories in simulations and compared the results with historical data, found that empires arise in response to the pressure of warfare between small states.

via Empires, bureaucracies and religion arise from war : Nature News & Comment.

Banks That Are Too Big to Regulate Should Be Nationalized – NYTimes.com

23 Jul

Simons (a hero of the libertarian idol Milton Friedman) was skeptical of enormity. “Few of our gigantic corporations,” he wrote [in 1934!], “can be defended on the ground that their present size is necessary to reasonably full exploitation of production economies.”

The central problem, then as now, was that very large corporations could easily undermine regulatory and antitrust strategies. The Nobel laureate George J. Stigler demonstrated how regulation was commonly “designed and operated primarily for” the benefit of the industries involved. And numerous conservatives, including Simons, concluded that large corporate players could thwart antitrust “break-them-up” efforts — a view Friedman came to share.

Simons did not shrink from the obvious conclusion: “Every industry should be either effectively competitive or socialized.” If other remedies were unworkable, “The state should face the necessity of actually taking over, owning, and managing directly” all “industries in which it is impossible to maintain effectively competitive conditions.”

via Banks That Are Too Big to Regulate Should Be Nationalized – NYTimes.com.