We’ve Been in the Same Mess Before
So, just how did America fix it the last time around?
“Those who do not remember the past are condemned to repeat it.” — George Santayana
The devolution of democracies into wealth-driven oligarchies has always been a threat to representative governments like America’s — and one of the great fears of the drafters of the U.S. Constitution.
America has dealt with this challenge before and overcome it. So, let’s take a look back and see how.
The Gilded Age
During the late 19th century, the United States experienced rapid industrial growth that created unprecedented wealth for a select few. These titans of industry amassed fortunes through anti-competitive practices that stifled competition, exploited workers, and manipulated markets.
This concentration of economic power quickly translated into political influence. Wealth was used not just to maintain business empires but to entrench them within the very fabric of government, creating a vicious cycle that preserved power and prosperity for the few at the expense of the many.
One response to this era of excess was the rise of the trust-busters. Reformers like Theodore Roosevelt championed antitrust laws designed to dismantle monopolies, curb corporate abuses, and restore fairness to both the marketplace and the democratic process.
These measures sought to sever the unhealthy ties between concentrated wealth and political power, fostering an environment where competition and democracy could thrive.
The Great Depression and the New Deal
Trust-busting efforts did not end with Theodore Roosevelt. In the 1930s and 1940s, Franklin D. Roosevelt’s New Deal and later wartime economic policies took significant steps to rein in monopolistic control. New Dealers recognized that unchecked corporate power not only hurt competition but also threatened democracy itself.
The federal government took aggressive action against concentrated industries, breaking up monopolies, enforcing labor protections, and preventing war profiteering. During World War II, the government ramped up antitrust enforcement to prevent corporate cartels from controlling key industries essential to the war effort.
Companies like Alcoa, the dominant aluminum producer, and major oil conglomerates faced scrutiny, and in some cases, forced divestitures ensured that no single corporation could hold the nation’s economy hostage.
These trust-busting measures helped create an era of broad-based economic growth and shared prosperity in the post-war period, where a strong middle class thrived and economic mobility flourished.
Starting it up all over again
However, starting in the 1970s, a shift began. Deregulatory movements, influenced by economic theories favoring free markets with minimal government intervention, gradually dismantled many of the safeguards put in place during the Progressive Era.
Antitrust enforcement waned, corporate mergers flourished, and economic power began consolidating once again. This deregulation paved the way for the emergence of a new billionaire class whose wealth rivals that of the Gilded Age magnates.
Today, we see the consequences of this shift. A small minority amasses staggering wealth through practices that often stifle competition and innovation. This wealth, in turn, is leveraged to shape legislation, influence elections, and secure policies that protect and expand their economic dominance.
The cycle of wealth begetting power and power protecting wealth has returned, leaving the middle and working classes to bear the brunt of its consequences.
Today’s version of the problem
The economic and social stresses created by this imbalance of wealth and power have inadvertently put a billionaire in the White House. This billionaire President, in turn, is using other billionaires to reshape the government in ways that further entrench the influence of the wealthy elite.
Policies are being crafted not with the interests of the broader public in mind, but to secure the economic and political dominance of those already at the top.
Another critical factor amplifying this problem is the evolution of mass communication. In the late 19th century, newspapers were the primary means of disseminating information, news, propaganda, and opinion to the public. While influential, their reach and impact were limited compared to today’s digital landscape.
Now, we have vastly more effective and pervasive means of communication— social media platforms, digital news outlets, and targeted advertising algorithms — all of which can be easily controlled and manipulated by the billionaire class. This control over information flow not only shapes public perception but also influences political outcomes, reinforcing the old cycle of wealth and power consolidation.
So, what will we do about it this time?
The question we face now is whether history will inspire us to act. The trust-busters of the past demonstrated that it is possible to confront and dismantle systems that favor the few over the many. The lessons are there, etched into the fabric of our history.
The challenge is whether we have the will to learn from them and to demand an economy and a government that serves all Americans, not just the privileged few.
A little background — comparing different economic systems
Well-regulated capitalism seems to be the best fit for American ideals and culture. It is the well-regulated part that can be hard to get right (especially when the corrupting influence of money in politics keeps getting in the way).
Wealth and power are interchangeable — one begets the other.
