Anybody who's paying attention is bound to see that every year our world is controlled by a smaller group of companies and their friends. The current crisis is just accelerating that. Twenty banks become five. Ten insurance companies become three. And it's nothing new. Since Enron we supposedly understand the importance of objective and external accounting measures. So it confuses me that nobody much seems to be upset that the once Big Eight accounting firms are now the Big Three. Big Two? Big ONE?
Well, let's step back a bit and remember that in much of America, not only is this round two or three of this kind of corporate domination (anybody remember Standard Oil? U.S. Steel?) but that many of our largest corporations were founded, not by inventors or marketers or people who cared about some particular kind of product at all. They were founded by financiers who set out from the get go to win not, fundamentally, by making better products but by owning as much of the market as they could and through techniques that are mostly illegal or should be. By beating up and marginalizing those who tried to succeed through the "naive" approach of making things that people wanted and selling them under good terms at a good price. They intended to win through sheer power and monopoly and to large extent they've succeeded.
I sound kinda vague, don't I?
Well, many of these companies have a tell. You see, they were quite open about their intent at the time, so you will find that these companies aren't named after founders or their products, or the places where they were. Nor after mythical figures or their products or any of the other types of names that show some kind of love by those in charge for what they have wrought. Instead the names are as arrogant and dismissive of particulars as their strategies.
They're all Generals.
General Motors.
Founded in 1908 by as a holding company by William Durant, who owned two car companies by the time he had been in business a year and owned two more by a year after that.
General Dynamics.
Rebuilt by financier Isaac Rice, who, starting as the Electric Boat Company, making submarines for the Japanese, Russian, British, and Dutch militaries in the early 1900s, and then renamed and reorganized the company under the current name in 1952 when their takeovers of Canadair and Convair, paid for with the company's large post-war cash reserves, caused then to reorg and become a "modern" conglomerate.
General Foods.
Renamed General Foods in 1929 when Postum, personally being run E.F. Hutton (the guy, not the company), used money from stock sales to buy up, in quick succession, the makers of Jello, Minute Tapioca (owners of the process later used to make Minute Rice), Log Cabin Syrup, Maxwell House Company, and others.
General Electric.
Created in a merger by J.P. Morgan of the pre-existing Edison Electric Company and Thomson-Houston Electric Company (itself a result of several mergers), in effect creating a monopoly on many patents and processes for all electric devices.
If a company has a name that starts with General, they are bad people. And do I even need to get into Union? Union Carbide, perhaps?
One day soon I'll get back to this in more detail but for now remember two things:
1.) Any company named General anything can be assumed to be scum.
2.) They were founded to be scum and those scum behaviors were woven into the DNA of the firm by the day the name was first announced.
Happy Holidays.
Rustin