There are two ways to develop a monopoly in America. One way is based upon capitalism, freedom and the free market.
This is the more transparent approach, but it also doesn’t have as much staying power, due to competition – the constant striving of others to build a better mousetrap, if you will. And despite what we think and are told, there is always a better mousetrap around the corner. This way is also much more difficult, for one has to remain on top of his game not only to achieve the goal of becoming a monopoly, but to maintain it.
Of course, this is merely an academic exercise, as Jeff Bezos of Amazon will likely discover as he seeks to conquer the retail industry. He will undoubtedly find that today, the second method is far easier.
The second method to developing a monopoly is through crony corporatism. For large companies seeking to own an industry, it is the best and easiest way to achieve there goal. It’s not what you know and how much you innovate – it’s whom you know and whom you can purchase.
The key to crony corporatism is in lobbying the political hacks in Washington, D.C. Amazon has been rapidly moving up the food chain to now be the world’s third-largest retailer, behind only No. 1 Wal-Mart and No. 2 CVS.