Abstract

　　Monopolization in the US economy is empirically evaluated, along with the concentration and centralization of capital. Factors which contribute to monopolization and counteracting factors are briefly outlined. In addition to income and wealth Gini indices, a Gini index measuring business inequality across firms is presented to assess the degree of monopolization. The business Gini index has steadily risen a few percentage points during the neoliberal era, reaching approximately 91% in recent years. To relate developments in the concentration and centralization of capital to the tendency towards monopolization, industry concentration ratio data are assessed. Tracking the progress of industries over time, concentration ratios tend to increase- particularly for industries which start out with low concentration ratios. The growth of top firms relative to the overall market is conditioned by technological innovation, which plays an instrumental role in cost and price competition. Average firm size within an industry is directly related to the organic composition of capital and concentration ratio, and inversely related to the relative standard deviation of the concentration ratio over time. By comparing the performance (including the growth of output and number of firms) of industries grouped in different ranges of concentration ratios, contrasting theories of competition are evaluated. The empirical findings support the theory of real competition over the theory of monopoly capitalism insofar as monopolization does not demonstrably undermine the law of value.

　　Keywords: monopolization; concentration; centralization; competition; Marxist economics

　　From: Critique 2023 51 (1)

　　Editor: Wang Yi