Monopoly is a threat, not least to essential services

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As Heather Cox Richardson reported in her Letter from an American, overnight:

According to Ukrainian presidential advisor Serhiy Beskrestnov, last night, without warning, Elon Musk's SpaceX restricted the speed limits for the Starlink terminals Ukraine's military uses, known as Starshield, debilitating Ukraine's drones even as Russian forces launched strikes against Ukraine's energy and critical infrastructure—the very infrastructure Trump said must be left alone.

Think about that for a moment. A man perhaps best known for his instability, support for far-right causes, and his penchant for disruption, who appears, once again, to be back in President Trump's Republican fold, has appeared to use his corporate power to support attacks by Russia on Ukraine by potentially removing Ukraine's ability to operate some of the drones that are now an important part of its air defences.

It is, of course, true that anyone, anywhere, who has studied war and how it is engaged in will appreciate that the interests and power of corporate enterprise are intimately connected to the ways in which wars are conducted. It would be extraordinarily naive to deny this. However, those interventions have usually related to the production of weaponry and other supplies, from which fortunes are usually made.

I suspect there are those who would argue otherwise, but what strikes me as quite exceptional about Starshield's denial of access to critical facilities to Ukraine during the course of not just war, but actual attacks, is that this might represent the use of corporate power to now actively intervene in the conduct of a war in a way very obviously intended to influence its outcome. That influence could benefit Russia. At the same time, it supports Donald Trump's position. It exposes Ukraine to considerable risk. It undermines the positions of NATO, Europe, and the UK.

As a consequence, corporate power is behaving as if it is a direct party to war and an active commander in combat. Is that unprecedented? I suspect not, given the long history of mercenaries, but this iteration might be, one prior case involving SpaceX, recorded by Reuters, having been noted.

So too might this expression of the power of the world's ultra-wealthy be unprecedented, to date.

Everyone knows of these people's influence on government, and there are few signs that they use that influence with benign intent. Now, however, we appear to have confirmation of its malignancy.

What does this imply? First, it indicates that there is a dispute over this issue between the White House and Musk.

There is considerable confusion over responsibility for the restrictions, with Musk pointing to US government control of Starshield while White House officials have reportedly denied having control over SpaceX.

Musk suggests as a result that the systems used by Ukraine are under the control of the US government. Trump has denied that and appears to blame Musk.

This incoherence does, in itself, suggest the dangers of permitting excessive power to rest in the hands of a few exceptionally privileged people who prioritise their own agendas rather than those of wider communities.

Second, the indication is very clear that the control of quasi-monopolistic, or in this case, actual monopolistic power over critical state functions being in the hands of individuals is wholly inappropriate when the services supplied are essential to well-being. This example may be extreme, but it is hardly unusual. Just look at the role of Palantir inside the UK government now, and this dependency is very obvious, and I have no more confidence in Peter Thiel than I do in Elon Musk.

What is the answer to this? It is not, I suggest, a wealth tax, although we very obviously need to tax those with wealth a great deal more if we are to control their power within the world economy. Instead, the need is for the state to exercise its power, particularly over marketplaces, more thoroughly.

One of the major themes that I address in the book I am currently writing, called How to Govern, is that neoliberal governments have forgotten the powers that are available to them to create well-being. One of those powers is the ability to set the rules of marketplaces. There is nothing natural about modern marketplaces. They are human constructs. They can only exist if effectively regulated. Monopoly is always an abuse of them. Control of it is, therefore, essential.

President Teddy Roosevelt understood this well in the early 20th century, when he tackled the monopoly abuse of those then described as the robber barons, who exploited their power over oil, steel, and railways to extract value from the people of the USA. His courage demonstrated that this power could be challenged and constrained.

We need to see evidence of that courage again now. A situation where someone like Elon Musk might have that influence over war is unacceptable. The need for the containment of that power is vital.

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