The Great Leveler : Capitalism and Competition in the Court of Law

Competition under capitalism -- Exchange production for markets -- Law as leveler -- Designs on monopoly -- The revival of competition -- Remaking monopoly for the twenty-first century "For all the turmoil that roiled financial markets during the Great Recession and its aftermath, Wall Street forecasts once again turned bullish and corporate profitability soared to unprecedented heights. How does capitalism consistently generate profits despite its vulnerability to destabilizing events that can plunge the global economy into chaos? The Great Leveler elucidates the crucial but underappreciated role of the law in regulating capitalism's rhythms of accumulation and growth. Brett Christophers argues that capitalism requires a delicate balance between competition and monopoly. When monopolistic forces become dominant, antitrust law steps in to discourage the growth of giant corporations and restore competitiveness. When competitive forces become dominant, intellectual property law steps in to protect corporate assets and encourage investment. These two sets of laws - antitrust and intellectual property - have a pincer effect on corporate profitability, ensuring that markets become neither monopolistic, which would lead to rent-seeking and stagnation, nor overly competitive, which would drive down profits. Christophers pursues these ideas through a close study of the historical development of American and British capitalist economies from the late nineteenth century to the present, tracing the relationship between monopoly and competition in each country and the evolution of legal mechanisms for keeping these forces in check. More than an illuminating study of the economic role of law, The Great Leveler is a bold and fresh dissection of the anatomy of modern capitalism."--Publisher's website. "For all the turmoil that roiled financial markets during the Great Recession and its aftermath, Wall Street forecasts once again turned bullish and corporate profitability soared to unprecedented heights. How does capitalism consistently generate profits despite its vulnerability to destabilizing events that can plunge the global economy into chaos? The Great Leveler elucidates the crucial but underappreciated role of the law in regulating capitalism's rhythms of accumulation and growth. Brett Christophers argues that capitalism requires a delicate balance between competition and monopoly. When monopolistic forces become dominant, antitrust law steps in to discourage the growth of giant corporations and restore competitiveness. When competitive forces become dominant, intellectual property law steps in to protect corporate assets and encourage investment. These two sets of laws - antitrust and intellectual property - have a pincer effect on corporate profitability, ensuring that markets become neither monopolistic, which would lead to rent-seeking and stagnation, nor overly competitive, which would drive down profits. Christophers pursues these ideas through a close study of the historical development of American and British capitalist economies from the late nineteenth century to the present, tracing the relationship between monopoly and competition in each country and the evolution of legal mechanisms for keeping these forces in check. More than an illuminating study of the economic role of law, The Great Leveler is a bold and fresh dissection of the anatomy of modern capitalism." (source : éditeur) Cover 1 Title 4 Copyright 5 Dedication 6 Contents 8 Introduction: Influences, Approaches, and Arguments 10 Part I. Leveling in Theory 36 Chapter 1. Competition under Capitalism 38 The Nature of “Competition” 40 Competition, Profit, and Growth 42 Competition and Monopoly 50 Conclusion 63 Chapter 2. Exchanging Production for Markets 66 Law and Competition in the Regulation School of Political Economy 68 Markets in Marx 75 From Marx to Market 79 Markets and Capitalist “Fixes” 85 Conclusion 89 Chapter 3. Law as Leveler 91 An Exercise in Finding the Golden Mean 93 The Antitrust Dampener 105 The IP Injection 115 Conclusion and Segue to Part II 127 Part II. Leveling in Practice 130 Chapter 4. Designs on Monopoly 132 The First Great Depression 134 IP Unchallenged: The Reemergence of Monopoly Powers in the United Kingdom 137 Intellectual Monopoly in the United States: The Legal Exception 152 Conclusion 175 Chapter 5. The Revival of Competition 177 Turning Marx’s Dialectic on Its Head 180 The Halcyon Days of Competition Law 184 Trading Places: IP Law Shackled 197 Law, Competition, and the Golden Age of Capitalism 204 Conclusion 222 Chapter 6. Remaking Monopoly for the Twenty-First Century 225 The Law’s Volte-Face, Mark 2: The United States since the Mid-1970s 228 The Chicago School Revolution in Political-Economic Context 236 Jumping Scales: U.K. Competition and IP Laws in a Globalized World 249 The Reassertion and Internationalization of Monopoly Powers 265 Conclusion 272 Coda: Back to Balance? 276 Abbreviations 294 Notes 296 Acknowledgments 346 Index 348 Brett Christophers Shows How Laws Help Capitalism Maintain A Crucial Balance Between Competition And Monopoly. When Monopolistic Forces Dominate, Antitrust Law Discourages The Growth Of Corporations And Restores Competitiveness. When Competition Becomes Dominant, Intellectual Property Law Protects Corporate Assets And Encourages Investment.