Evolution of the Corporation in the United States
Show Less

Evolution of the Corporation in the United States

From Social Control to Financialization

Glen Atkinson, Eric R. Hake and Stephen P. Paschall

This insightful book traces the evolution of corporate power in the United States, from social control over corporate power under early state laws to the modern liberation of the corporation serving primarily private purposes. It illustrates how the transition of attitudes towards corporations and dynamic changes in public policy have ushered in an age of financial fragility, income inequality and macroeconomic instability.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 5: Failure of federal policy to achieve social control

Glen Atkinson, Eric R. Hake and Stephen P. Paschall


The Sherman Act was a response to mergers occurring to restrain competition. Its application was limited by a narrow interpretation of interstate commerce and the judicially created Rule of Reason. The Clayton Act and the Federal Trade Commission Act were intended to address problems with the Sherman Act but did not reduce mergers. The current focus on efficiency makes challenges to horizontal mergers infrequent and still more so for vertical consolidations. Proposals to strengthen antitrust enforcement suggest reverting to an unachievable era of small firms competing on price. Federal laws seeking to address financial fraud also have failed. Reliance on financial disclosure suggests that shareholders will discipline errant corporations by selling their stock. Even if it does so, it does not protect other constituencies, such as employees.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.