Presence of Trusts.  Monopoly Conditions. Occam’s Razor.

When looking at the concentration and consolidation of the joint stock companies, the socialization of commodity production must be noted.  As the trusts and monopolies dictate production, they are planning what to build, and how much to charge for the commodities they produce in large factories.  

Agriculture uses the state as a planning organization; the United States Department of Agriculture (USDA) disburses tens of billions of dollars to large farmers in an attempt to decide what will be grown, how, and by who.

Competition was used to determine by supply and demand the price of a commodity in the earlier stages of capitalism.  The companies would produce as much as possible to drive their competitor out of business, and to maximize surplus value. The USDA keeps this under control by paying farmers not to grow, a central planning structure indicating socialization of production, under capitalism.  

Production of many of the main commodities, gas and electricity for individual households and businesses, for instance, is owned and controlled by Wisconsin Electric and Gas (WEPCO).  There is no competition, the price is determined by the production of gas from the wells, and coal from the mines, and then wherever WEPCO can get away with selling it for a price they set, not by competition with other companies,it is sold by them ot consumers.

Much of the price of gas and oil, according to the monthly bill, is distribution of gas through the lines, which are wholly owned by WEPCO.  The electricity lines, the high voltage ones, as well as the smaller lines, are all property of WEPCO.  This is a  large part of the cost, and we know WEPCO makes a profit through its ownership of these means of production.  

WEPCO is no longer using nuclear energy;. There is only one electrical generator left in Point Beach, 25 km from Green Bay,the last of Wisconsin’s nuclear energy experiment.  It was built in 1970, and has been running for 55 years now.  It was designed to go about 40 years, but the bourgeois fetish with nuclear energy has meant the constant danger to Green Bay of a meltdown to squeeze another ten  years out of it.

Obviously Point Beach’s days are numbered.  Nuclear energy is too dirty, it leaves a spent reactor and waste product mankind has yet to find a way of safely  disposing of for 100,000 years, the length of time before the waste is safe to be handled by humans again.

There are tons of this stuff just sitting in the spent reactors, a monument to bourgeois disdain for ecology, and future generations who live and use Lake Michigan.  

WEPCO now uses coal and gas for generation of electricity, and with Donald Trump in power this will probably not change, at least not soon.  His idea that climate change is not important should keep coal being used for power generation for some time to come.  Even switching to natural gas looks unlikely as Trump supports coal production.

I have previously noted the state of the grocery markets, the presence of a smaller and smaller number of owners of the stores.  WalMart, Kroger, and Albertsons control most of Milwaukee”s markets.  Piggly Wiggly is Albertsons, Pick and Save is Kroger. These two stores used to have competition, but given they were planning to merge, how much competition are we to believe is occurring?  They planned to remove competition  through a merger, they are no longer together?  

Which ultimately leads to revolutionary activity, such as employee owned stores like Woodmans.  The product is sold at its va;lue, determined by how much labour it contains, whether or not it is paid for. .

The alternative of a cooperative for production, proletarian socialization of industry, is the direction society seems to be traversing.

But there is more.  Karl Marx said “ the antithesis of capital is living labour”.  He meant that the individual doing the labour a capitalist would be doing, instead of the contractor, a capitalist,  is revolutionary.  Doing it yourself also removes the capitalist from production.  Plumbing your own drain, for instance, removes a capitalist company coming with the plumber. This saves money, and the instructions for small repairs of this type are all over YouTube.

Youtube brings us much closer to socialism; there are recipes on it a person can cook themselves, and avoid going to the restaurant, which is owned by a capitalist.  

Living labour is a direction society is starting to traverse more and more, reducing the power of large capitalists.  Setting up a rooftop solar panel system is currently expensive, although it pays for itself eventually.  The panels are becoming cheaper, and it is probably no accident it is China, with “ one country, two systems” that produce 80% of the solar panels. 

A more self-sufficient lifestyle, with labour for one’s self and family, combined with the cooperatives, restricts capitalists from total domination. 

There was a time in the past all manual labour was considered to be something to be avoided.  We see this today as luxury cars, for instance, are equipped with a driverless system.  Even if it was safe, (it will always be like riding a motorcycle), the labour of even driving your own car is unpalatable to the bourgeoisie. Imagine cutting your own wood,  or cooking for yourself?

Things are starting to change.  Many people have had enough of the monopolies controlling their lifestyles, and are ready to start to do more for themselves. Combined with the knowledge that cooperatives work,  the trust’s days may be numbered.  Living labour and a changing pattern of ownership, made necessary due to the lack of competition, where WEPCO owns the gas and electricity, produces the commodities, and sets prices, is shifting towards solar generation from home, and other forms of renewable energy..

Socialization of production is occurring in land ownership for agriculture, and production of commodities in the factories.  The days of small shops and competition have given way to trusts and monopolies in control of society.  A central planning mechanism  by capitalists, dictating what and how much to produce, has taken root. Ownership is increasingly in the hands of a few families, who own the shares of joint stock companies, and reap the surplus value. Manual labour is still considered demeaning to the bourgeoisie who own the stocks, but the amount of energy required to produce the lifestyle of luxury looks increasingly ridiculous. A $150 meal for the family at the restaurant, etc. shows the foolishness of our bourgeoisie, whose waste of energy looks much like Roman society’s extravagance towards the end of their rule.  Luxury production is mostly this, and this bourgeois is in control of the state.  Elon Musk, who produces luxury automobiles; Sheldon Addison, casino owner;  contributed more than 350 million dollars to Trump to get reelected. It worked too. The disdain for manual labour could not possibly be more felt than now.  Imagine Musk cutting his own wood, or making  himself dinner.  It’s just not going to happen.

The trajectory of capitalism has not changed, we are just in its late stages. Pressure for a  simpler life without luxury production is becoming more socially acceptable. The simplest answer is usually the right one, Occam’s Razor, comes into play.  It should be possible to cook a better meal than the restaurant, at a fraction of the cost, and energy usage.  When we get over washing the dishes and cooking,, manual labour,, our vision of society changes. Material conditions change, and with it our consciousness. A quest  to produce it yourself comes to be.

Nicholas Jay Boyes 

Milwaukee Wisconsin

American Democratic Republic

1 20 2025

revision 9 20 2025

Concentration and Consolidation of Ownership. Joint Stock Companies.

Try as they may, regardless of the size or sophistication of their latest technology, there is no changing material conditions.  Even with all the new weapons, the fact remains the companies are owned by a monopoly, a duopoly, or cartels.

Every crisis consolidates ownership further, as the companies concentrate ownership.  Often bought in crisis conditions, for ridiculously low prices, or merged by companies with larger wallets to absorb functioning capital, more and more joint stock companies dominate industry.  

It is rare now to have a large company not listed on the stock exchange, the center for trading of joint stock companies.  The days of an industry being private property of an individual have basically come to an end.  

With this change competition begins to fall behind making surplus value by setting prices due to monopoly.  When there are only a few large companies owning, say, electricity and gas, and distributing this gas to consumers on their own lines, it is not hard to see competition come to an end.

Wisconsin Gas and Electric produce all the electricity from power plants here Milwaukee Wisconsin, and also own the lines for transmission of high voltage to Milwaukee.  They also own the gas lines, and distribution facilities, including pipelines.  There is no alternative source in any sense, and short of cutting your own wood, the houses are all gas burning forced air heating.  Solar is still prohibitively expensive, and Wisconsin Gas and Electric do not pay for excess production from solar generation in homes.   

This has been building for some time.  It is a common feature of industry to become concentrated in a few hands, often in the form of monopolies.  They set prices as they control the production facilities, the distribution,the lines etc., and do not practice competition.  

The days of competition regulating the price of major commodities is rapidly fading.  The grocery stores are now all consolidated into huge markets, dominated by WalMart, Kroger, Albertsons, and Costco.  Smaller family owned stores are becoming rare, only for an item or two needed between visits to the big stores.  Kroger and Albertsons attempted a merger, which looks like a failure, but would have meant about half of grocery stores would have been controlled by WalMart and Kroger Albertsons combined as one company.

The largest computers cannot stop the consolidation of industry, the growth of joint stock companies and monopoly conditions. It is a built in condition of late capitalism, described by Friedrich Engels in Anti Duhring in the 1890’s; the growth of joint stock companies, and concentration and consolidation of industry. here is a quote

T0″he period of industrial high pressure, with its unbounded inflation of credit, not less than the crash itself, by the collapse of great capitalist establishments, tends to bring about that form of socialization of great masses of means of production which we meet with in the different type of joint stock companies. Many of these means of production are, from the outset, so colossal that , like the railways, they exclude all other forms of capitalistic exploitation. At a further stage of evolution this form also becomes insufficient. The producers on a large scale in a particular branch of industry in a particular country unite in a “Trust”, a union for the purpose of regulating production. They determine the total amount to be produced, parcel it out among themselves, and thus enforce the selling price fixed beforehand. But trusts of this kind, as soon as business becomes bad, are generally liable to break up, and on this very account compel a yet greater concentration of association. The whole of the particular industry is turned into a gigantic joint stock company; internal competition gives place to internal monopoly of this one company. This has happened in 1890 with the English alkali production, which is now, after the fusion of 48 large works, in the hands of one company, conducted on a single plan, with a capital of &6,000,0000.”

“In the trusts, freedom of competition changes to its very opposite- into monopoly; and the production without any definite plan of capitalistic society capitulates to the production a definite plan of the invading socialistic society. Certainly this is so far still to the benefit of the capitalists. But in this case the exploitation is so palpable that it must break down, No nation will put up with production conducted by trusts, with so barefaced an exploitation of the community by a small band of dividend mongers.”

Anti Duhring First wellread books edition 2017

Part 3 socialism II Theoretical p. 329

Which is optimistic that a society will not tolerate trusts and monopolies, which is precisely what we have learned to do. The important part is trusts and monopoly were recognized by Engels as being the dominant form of capitalism.

This was published in 1890. Vladimir Lenin published Imperialism, the Highest Form of Capitalism, in 1916. Clearly Lenin agreed with Engels, and developed this idea further.

It is all connected, and the presence of these monopolies looks unlikely to change.  Internet service is also dominated by two large companies, one of which has been the subject of antitrust activity, American Telephone Telegraph, AT&T.  The only choice is Charter, also called Spectrum, and these companies cooperate to keep the price of internet at a set price, by removing, for instance, subsidies by the state to keep the price of internet low for seniors.  There is AT&T again controlling prices; last time it was their long distance telephone service, broken up by congress, resulting in the baby Bells.

Computers are dominated by Apple, who produce most often computers used in homes. International Business Machines, IBM, is no longer a competitor of home computers to Apple, who are close to monopoly.  Google as the search engine, also a monopoly, caps off much of our computing.

This list could continue, but I think I have made my point.  Consolidation and concentration of ownership into joint stock companies, often exerting monopoly power, is a fixture of modern capitalism.  Rarely it is addressed as antitrust by capitalists who want to artificially change what is a dominant feature of capitalism, to control the market by monopoly.

Every capitalist wants to drive his competitor out of business.  When they are successful at this, they control the market, competition ends, and they then set prices for the commodity they control. It seems to be universal; there are no sectors of the economy left untouched by consolidation of ownership. Breaking them up is only a temporary fix, AT&T for instance is now back to its old self again, in a duopoly of internet service with Charter, as they own the fiber optic cables. Antitrust activity towards AT&T, breaking up the long distance telephone to the baby Bells, did not stop AT&T from again attempting to set prices by control of markets,this time in internet transmission .

This system is a form of capitalism referred to as imperialism in the late 19th century and early 20th century by Friedrich Engels, and later by Vladimir Lenin. It was becoming more obvious then that joint stock companies would dominate capitalism, and consolidation of ownership would only continue.  

Names like J Peirpont Morgan, and his domination of 20th century large scale industry, is a case study in the growth of monopolies and trusts. By the early to mid 20th century Morgan’s empire included railroads, Steel production (US Steel), General Electric, AT&T…. Morgan personified the bourgeoisie of the 20th century, with control of markets for just about every large industry.  

When the next crisis comes the trend will no doubt continue. Capitalism is at the  stage where competition is becoming rare, only lasting a few years in a new industry, until monopoly control and joint stock ownership is achieved. Crisis comes and ownership is consolidated further, the likes of which are a recurrent theme in capitalism. It seems unlikely this will end without leaving capitalism, antitrust does not deter companies from concentration ownership of the means of production (like AT&T) from continuing to exert monopoly power over the industries they own, it just sets them back a decade or so.  It is just way too tempting to remove competition by these capitalists , and set prices.  

Nicholas Jay Boyes

Milwaukee Wisconsin

American Democratic Republic

1 4 2025

revised 9 16 2025