Professor Thomas DiLorenzo: The Myth of Natural Monopolies

Professor Thomas DiLorenzo has an education for you. Do you suspect that your typical socialist professor isn't telling you the truth about economic history? If you read this one article, you'll know more about monopolies in America than Paul Krugman and most historians put together. Professor DiLorenzo quotes Professor Harold Demsetz:

Six electric light companies were organized in the one year of 1887 in New York City. Forty-five electric light enterprises had the legal right to operate in Chicago in 1907. Prior to 1895, Duluth, Minnesota, was served by five electric lighting companies, and Scranton, Pennsylvania, had four in 1906. … During the latter part of the 19th century, competition was the usual situation in the gas industry in this country. Before 1884, six competing companies were operating in New York City … competition was common and especially persistent in the telephone industry … Baltimore, Chicago, Cleveland, Columbus, Detroit, Kansas City, Minneapolis, Philadelphia, Pittsburgh, and St. Louis, among the larger cities, had at least two telephone services in 1905.

You'll want to read the entire article, three times and watch the video below. Just a reminder: monopolies can only occur from special privileges handed out by government.