Were the first monopolies in the United States a product of unregulated Capitalism ? Was the market at the time free when a monopoly from Carnegie and Rockefeller came to sucess?
Itshttp://www3.northern.edu/marmorsa/businessandindustry2010.htm
"The growth of American rails is another example of government intervention on the behalf of business rather than a truly free-market system. The Federal government gave huge subsidies to the companies that built the first transcontinental railroad, Union Pacific and Central Pacific. The companies got 20 square miles of land for each mile of track laid, plus direct payments of $16,000 and $48,000 per mile for track laid in plain areas and mountain areas respectively. Not content with their enormous government-subsidized profits, the directors of Union Pacific maximized their own profits by hiring out the work to a subsidiary, Credit Mobilier. They paid CM $73 million for $50 million worth of work. Why? Well, they controlled CM outright while they were only major share holders in Union Pacific. The scheme they adopted allowed them to transfer $23,000,000 in profits directly to themselves so that they would not have to share with the other Union Pacific stock holders. The directors of Central Pacific (Stanford, Huntington, Crocker, and Hopkins) did likewise, raking in the big bucks and ensuring bright futures in business and politics for themselves. Meanwhile, those doing the actual work (engineers like Theodore Judah and the Irish “Paddies” and Chinese “Coolies” who did the actual work) received little credit or compensation. Ultimately, the Federal government gave away more than 155 million acres of land to the railroads—and local governments gave the railroads even more so that the rails would go through their town rather than some other."
Not only does this show serious intervention in the market, but it shows clear subsidies given to bad and dishonest businesses. This is government picking winners and losers yet again and not picking those with anything in mind but expanding power.
This is mainly because wherever there is monopoly or mega corporations its seldom due to the free market. Even most corporate markets that are huge today feed and thrive on corporate welfare, tax exemptions and other special favors. For with a government with a monopoly on Money, force, and regulations they will always be the tool of the bankers and elites to see their will pass.
Monopoly was never a result of unregulated Capitalism nor was the great depression. These are schemes used by big banks and government to gain more control over business and regulations so they can position themselves ever so comfortably at the top. They now because of size care little about the functional aspects of business, they are one interest free loan away from success again. Worst case a congressional bail out is in order, after all thats alot of jobs. Monopoly is a product of government intervention in economics. It should serve noone as a surprise that a monopoly helps create other monopoly.