Argumentative Essay: Monopolies in the United States Should Be Allowed

Modern-day monopolies have control over every part of their market. They can raise and lower the prices of their line of products, and the consumers have no say in it since they can’t buy from anyone else. These companies not only hold power over the products released to the public but they can also alter and keep information from them too. Monopolies in the United States should be allowed, but they should be restricted due to their control over the markets, the lack of competition, their power to manipulate the public, and for the sake of capitalism itself.

Monopolies have been around for hundreds of years, but many people still don’t truly understand what they are. A typical monopoly will horizontally expand; when a company horizontally expands this means that they are widening their business across the entire consumer area (horizontally) (Roark, et al. 162). If a company successfully expands horizontally then they can afford to not worry about competitive prices, the competition for their product and their business is going to be running at peak condition. In the past and present, there have been many successful monopolies that were able to exist peacefully without the fear of competition; examples of these successful monopolistic companies include Carnegie Steel, Facebook, and Amazon. Carnegie Steel was able to hold a monopoly on the entirety of steel inside of the United States by having a tariff placed on British steel and lowering their own shipping costs (Roark, et al. 161). Facebook once held a monopoly over the media, although it was short-lived. They took over the early versions of social media and pioneered the modern world of technology. Amazon, one of the most popular brands in the world, has been able to place a near-monopoly on all internet buying and shipping. 

Although it has worked well in the past, what is truly a good monopoly is in the eye of the beholder. The horizontal expansion that can be used to supply goods to an entire nation, can also be used to steal companies or “borrow them” using trusts. Standard Oil was able to use these trusts to use or take over every single company that sold oil within the borders of the United States in the early 1900s (Robber Baron 1). With this type of power and control, the person who owned Standard Oil held 1% of ALL money within the United States (Roark, et al. 162). This type of power can raise the prices of their goods to any amount without repercussion and leads to no advancement of that product. Other companies have followed Standard Oil’s examples such as American Tobacco, Amazon, and many others. While Amazon was able to supply their goods to all their customers, they also destroyed the other businesses in their paths, leading many to poverty (Tyrkus and Schwartz). 

Since monopolies have been dominating the markets of America, and the world, for centuries, the government has stepped in more than once to help correct their damage, or potential of it. In 1890, the Sherman Antitrust Act was passed and dissolved the trusts that Standard Oil established, to distribute their power and reach between separated companies and groups (Tyrkus and Schwartz). Since this act has passed, many companies have moved from horizontal expansion to vertical expansion; vertical expansion is when a company establishes itself into every step of its business. This includes farming their resources, manufacturing their products, shipping them, and selling them; this type of expansion allows companies to grow exponentially, without the fear of breaking antitrust laws. The antitrust laws attacked many “destructive” businesses, but they also opened the gate for many others to come and start their businesses (American Dream). Without the possibility of a massive business coming in to steal their business, many smaller businesses were able to open up and start their own lines of products and services. 

Today, nearly everything used or bought is or was created by a monopoly. Everyday places and websites, such as Walmart, Hulu, and HBO, are all run by large monopolies or duopolies. A duopoly is the appearance of competition, but in reality, the big companies are working together to suck every last penny from their customers. This illusion of adversary makes the consumer think that the prices of different brands of products are competitive when they are really set in stone and agreed upon beforehand. The newest superhero movies are run by Disney and Sony; while they don't work together on their movies, they work together with things like the release dates of their movies to get the most monetary gain possible.