The progressivist vision of how an economy should look and operate is represented almost perfectly by the merger of Duke Power and Progress Energy. This merger creates a giant government protected monopoly that will, in conjunction with government bureaucrats, control the production, sale, and distribution of electric power for most of North and South Carolina. This has always been the economic vision of the progressive movement going back to the early 20th Century.? It is the model that originally gave us the FCC, which created cartels in the radio ad TV industries; the CAB, which cartelized the airline industry; and the ICC, which brought about the cartelization of the trucking industry, among other monopoly creating government agencies.
In the progressive economy all production activities would be dominated by a few very large industries that work hand in glove with the regulatory apparatus of the state. A few very large companies are easier and less costly to regulate and pacify than many smaller companies acting in a competitive environment. The Duke/Progress merger advances this agenda. While these companies are, on paper, private, they have their market completely protected from competition by government regulation.? All prices are set with prior approval of the state and, in exchange for this, profits are guaranteed at certain levels. In addition, the state makes decisions about how and what sources are used to produce the product in question. In this instance the product is electricity. In other words, all the important decisions are made by government while maintaining the veneer of private enterprise.
By the way, this is also the model for transforming the health insurance industry under Obama Care.
