Job Loss--No One's In Charge

In the hue and cry over lost jobs—especially those that have departed for foreign parts—one very real problem is being overlooked. It’s a problem that the United States faced before, and it took us the better part of a century to get a handle on it the first time.
True, a lot of the difficulty with jobs going overseas and major corporate misbehavior is greed, desire to avoid taxes political ineptitude, etc. But there is a significant factor that is merely a consequence of continued growth, almost an evolutionary thing.
Let’s look at the first time we faced this situation. Back when the Constitution was written, in 1787, the United States had almost no industry whatsoever. The largest business in the country may well have been no bigger than a general store or an independent hardware store.
It never crossed anyone’s mind that there might EVER be a need for federal interference with or regulation of a business behavior. About all the Constitution says about regulating business is that no state may charge tariffs or tolls on goods from another state. Any regulation of business itself was left to the state it was in. That worked for a few years.
Then Jefferson embargoed goods from France and England, and we were forced to build our own factories. Shortly after that someone invented something called a railroad and it became possible to ship goods from a business in one state to outlets in a dozen others.
The railroads themselves quickly became too big for any one state to control. How could the state of Indiana, for instance, exercise effective control over the behavior of a railroad that originated in New York and ran through it to Illinois? It couldn’t.
American business entered a period of more than half-a-century in which literally no one exercised any control over its behavior. (Nelson Rockefeller was once asked if his grandfather, Standard Oil magnate John D. Rockefeller, ever broke any laws.
Nelson, himself a governor and a Vice President, thought for a moment. “No,” he said, “grampa didn’t BREAK any laws—but they sure made a lot of laws BECAUSE of him.” John D. enforced his oil monopoly with, among other things, sticks of dynamite applied none to gingerly to a competitor’s stocks of crude oil.
“Commodore” Vanderbilt created his monopoly over ferry boats in New York harbor by dynamiting any competitor who wouldn’t sell out to him. He pretty much ran his railroads the same way, making the famous comment, “My God, John, you don’t think you can run a railroad according to laws of the State of New York, do you?” He didn’t bother.
Banker Pierpont Morgan could contemptuously dismiss a presidential complaint by suggesting, “You send your man (the Secretary of Treasury) to see my man (his personal secretary), and they can work it out.” He saw a president as merely an equal, if that.)
It took decades of creating commissions (like that Interstate Commerce Commission—which for years was completely powerless), passing laws, and finally stocking the Supreme Court with men who thought it might be okay for the Federal Government to exercise some control over business and banking. It was a long, bitter political fight.
Finally, it took the collapse of the markets in 1929, and a loss of half the national product over the next four years, to give Washington real powers of regulation over business coast to coast. But business has continued to grow. Now it doesn’t just run through Indiana unregulated, it spans foreign continents with no state or national power having the jurisdiction to make it behave.
It can send jobs where it likes, where they are cheapest; it can move its plants to places that have the lowest tax rates—across oceans. Once again, we have “railroads”, “banks” and “oil monopolies” too big and too wide spread for any one governmental entity to control them.
No one tax code applies, no set of regulations. They can be a law unto themselves.
So how do we get them back under control? The United Nations? A single World Government? An absolutely appalling thought. But come up with another one that works. Until then, just hope some Commodore Vanderbilt isn’t mad at the ferry you happen to be riding. At the very least, he might ship your job to China.