Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Chris Jackson/Getty

In an essay in Harper's in 1913, Louis Brandeis, the future Supreme Court justice, decried the "curse of bigness," a broadside against the huge business trusts that dominated the U.S. economy. Big railroads and banks, in his view, were at core in the era's widespread economic squalor and political corruption, and he made it his aim to break them up.

Today, taking stock of the new political turbulence crossing the globe, numerous scholars have found disturbing similarities in the Gilded Age, the heyday of the trusts, just preceding World War I.

  • This is because in pharma, telecoms, Big Tech and more, judges and politicians have again allowed private companies to run rampant, heedless of workers or society, writes Tim Wu in "The Curse of Bigness," his forthcoming book.
  • The anti-establishment wave, economic inequality, and xenophobia of our age? Wu's thesis is that Bigness — what he calls the new trusts — are behind all of it. They are "the No. 1 problem" confronting the U.S., he tells Axios — "at the root of all the other challenges the country faces."

The big picture: In an Oct. 25 report, the McKinsey Global Institute said that outsized companies around the world, which it calls "superstars," dominate total global business revenue, and that they are only growing more dominant.

  • Researchers have linked such companies to decades of largely flat U.S. wages and inequality, especially in rural areas where people have little choice where they work.
  • Since the 2016 election, Big Tech has been under a political microscope, threatened with regulation and greater taxation.
  • Against the glare of opprobrium, the Big Tech companies, quite different from the imperious Gilded Age trusts, are attempting to at least appear responsive.

But they are not going as far as Wu urges in what is a forcefully argued, extended essay — the immediate breakup of Facebook, and a watchful eye on the rest.

  • All 71 of the acquisitions that have made Facebook what it is today need to be reviewed, and some "were illegal," he asserts. Facebook "dried up innovation, resulted in higher prices, and was used as a tool to influence the 2016 election."
  • It should especially disgorge Instagram and WhatsApp, he says.

When Wu talks this way, it's because of the parallels he sees in the Gilded Age and the 1930s, when profound inequality, populism and nationalism led to "extreme politics, and ultimately war and totalitarian government." In the book, he writes:

Over the 20th century, nations that failed to control private power and attend to the economic needs of their citizens faced the rise of strongmen who promised their citizens a more immediate deliverance from economic woes. The rise of a paramount leader of government who partners with monopolized industry has an indelible association with fascism and authoritarianism.

Wu trots out statistics: In the late 1960s, the share of national income going to the top 1% of earners was 8%. As of last summer, it was 23.8%. "We are in grave danger of repeating the errors of the 20th century," he told me.

  • In addition to Facebook, Wu counts up 214 acquisitions by Google and 91 by Amazon. He wants Google to disgorge YouTube and Waze.
  • But while tech gets almost all the attention, other sectors like pharma and cable TV are worse, he says. Some 68 million Americans, he says, have only one broadband server.

Yes, but: It turns out that bigness may not always be a curse. Wu is less categorical when it comes to Amazon, which he says has good and bad qualities. On the good side, it is shaking up industries that need to be shaken up, like insurance, he argues, and it provides access to products that some people otherwise would not have.

  • Amazon "still has competition," by which he means Walmart and Target. "But it needs to be watched carefully."

Go deeper

Kendall Baker, author of Sports
Updated 14 mins ago - Sports

Tiger Woods crash: What we know

Photo: Wally Skalij/Los Angeles Times via Getty Images

Tiger Woods underwent emergency surgery to repair damage to his right leg and ankle, after he was involved in a single-vehicle accident on Tuesday in which his SUV ran off the road.

What we know: The golf star "is currently awake, responsive and recovering in his hospital room" at Harbor-UCLA Medical Center, according to a late-night statement from his team.

Dan Primack, author of Pro Rata
15 mins ago - Podcasts

Corporate America pressures Congress to act on stimulus

Big corporations and top CEOs are putting pressure on Congress and the White House to pass economic stimulus measures, as the political debate drags on.

Axios Re:Cap goes deeper with Heather Higginbottom, a former Obama administration official and president of the JPMorgan Chase Policy Center, about why her organization just published its first-ever set of policy recommendations.

Capitol repairs, security top $30M since Jan. 6 attacks

Photo: Bill Clark/CQ-Roll Call, Inc via Getty Images

The Architect of the Capitol Brett Blanton on Wednesday said that repairs and security expenses related to the Jan. 6 insurrection have already cost more than $30 million.

The state of play: Congressional appropriations committees have allocated the $30 million for repairs and perimeter fencing around the Capitol building through March 31, per NPR.