He added that "permitting favored businesses to cartelize
runs counter to US antitrust norms and would disrupt an otherwise functioning market economy."
The majority-party leaders cartelize
the procedural rules to favor the majority party and punish the defectors in order to maintain the cartel arrangement.
'I vehemently deny that there was any intention on the part of the Department of Agriculture to cartelize
the chicken farmers.
A strength of the Beitos' narrative is the soundness of the economic analysis at several points (This feature should never be taken for granted when reading most historians' writing.) For example, when discussing the socio-political context into which Howard was born, the Beitos provide a clear description of the attempt by large farmers in the Black Patch to cartelize
tobacco production via the "Planter's Protective Association" and the violence that eventually resulted from the plan.
In the Introduction, Patrick Newman summarizes Rothbard's central thesis: "Big business had previously tried to cartelize
on the free market around the turn of the 20th century, but had failed to do so." Having failed, they turned to government to create the myriad regulations sold as somehow controlling the big "trusts," but which in reality were designed to reduce competition from smaller businesses.
(154) In the 1950s and 1960s, major American electrical equipment manufacturers grew to cartelize
dozens of individual product markets as "[t]he experience of one conspiracy was often transferred to another." (155) The multibillion dollar international vitamins cartel began by fixing the prices of relatively few vitamins and then expanding to other vitamins as the manufacturers gained experience in price fixing.
A second and somewhat more provocative conclusion was that some of the most controversial elements of the New Deal, such as the National Industrial Recovery Act, were expansionary, rather than contractionary, as the conventional wisdom held at the time, but the act included temporary but highly controversial policies like allowing firms to cartelize
to prop up prices, in violation of reigning antitrust laws.
This is the same FDR who gave us the National Recovery Act, an attempt to cartelize
industry and protect big businesses from the nasty unpredictability of competition.
In addition to this, the current 10 percent threshold narrows down the political domain, helps some parties cartelize
and prevents various circles of the society as well as new political movements from being represented in Parliament, hence it hinders political participation.
Although it eventually was overturned by the Supreme Court, its purpose was to cartelize
industry and limit competition so that businesses could raise their prices.
(5) Criminal monetary fines levied on corporate defendants thus provide no direct incentives for boards of directors to implement sufficiently effective compliance measures to counteract the powerful economic incentives to cartelize
. The penalty, if the company's misconduct is even detected and successfully prosecuted, is borne by others who have no particular economic incentive to care very deeply.
They mainly served to cartelize
industries for the benefit of producers at the expense of consumers, through controls over prices and market entry that involved implicit economic transfers and opportunity costs but few outright expenditures.