As the Marxist pamphleteer Adam Smith wrote in his Leninist textbook *The Wealth of Nations*, "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices."
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
For a commie, that Adam Smith sure had a fine grasp of the business mindset. Price-fixing conspiracies are as old as the lumber barons who gouged Noah, and they're illegal as hell.
But price-gougers gonna gouge, and for most of the past 40 years, regulators have been monumentally disinterested in protecting the public from these ripoffs.
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
All our regulators asked was of the price-gougers was that they come up with the thinnest, least-convincing comb-over and in return, these regulators would pretend not to notice the glaring bald-spot shining through.
The one weird trick that these guys have hit upon is to use industry-wide "pricing consultancies" - clearinghouses that pretend to offer individualized price advice to each seller in a market.
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
In reality what these companies do is aggregate all the prices charged by every major seller in the market, then advise *all of them* to raise their prices in sync:
pluralistic.net/2025/06/24/pri…
When we talk about "greedflation," we don't just mean one seller - a major grocery chain, say - raising prices because they know they've got a regional lock on their market.
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Pluralistic: Surveillance pricing lets corporations decide what your dollar is worth (24 Jun 2025) – Pluralistic: Daily links from Cory Doctorow
pluralistic.netCory Doctorow
in reply to Cory Doctorow • • •Sensitive content
That happens, but far more pernicious is when *all* the sellers get together to raise the price of goods, via a brokerage that lets them pretend (unconvincingly) that they're just getting "price advice."
Take Agri-Stats, a conspiracy in plain sight that gathers in pricing from all the major meat processors and then tells them all to jack up the price of meat:
pluralistic.net/2023/10/04/don…
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Pluralistic: For 40 years, Big Meat has openly colluded to rig prices (04 Oct 2023) – Pluralistic: Daily links from Cory Doctorow
pluralistic.netCory Doctorow
in reply to Cory Doctorow • • •Sensitive content
Then there's Realpage, a conspiracy that gathers rental prices from all the landlords in your town and "advises" them all to jack up prices. Landlords who don't obey this "advice" get kicked out of the conspiracy:
popular.info/p/feds-raid-corpo…
These "price consultancies" are the reason you can't afford a hamburger or your apartment anymore. During the Biden administration, the Federal Trade Commission was working towards a nationwide ban on this stuff:
pluralistic.net/2024/07/24/gou…
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Feds raid corporate landlord, escalating nationwide criminal probe of rent increases
Judd Legum (Popular Information)Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
Of course, after Trump took office, his FTC canceled all that work and instead set up a snitch line where FTC employees could report on each other for being "woke." And, you know, *fair*: making sure that no one who works for the federal government has a pronoun is *far* more important than making sure you can afford to eat dinner and sleep indoors.
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
But (as the saying goes) the states are the laboratories of democracy. State legislatures are (sometimes) stepping in to fill the voids where Trump has failed the American people. That's what's just happened in California, the world's fourth largest economy, where Governor Newsom has just signed AB325 into law, and banned these price consultancies:
legiscan.com/CA/text/AB325/id/…
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
Specifically, the law makes it "unlawful for a person to use or distribute a common pricing algorithm if the person coerces another person to set or adopt a recommended price or commercial term recommended by the common pricing algorithm for the same or similar products or services."
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
As Matt Stoller writes, this may seem like small potatoes, but it's actually a huge ideological victory, and marks a major new milestone in the long fight to slay the political ideology that welcomes oligarchy:
thebignewsletter.com/p/how-to-…
Stoller recounts the history of this pro-oligarch movement, and describes how it began by rejecting earlier Supreme Court decisions that banned price coercion - like when a cartel forces its members to adopt higher prices.
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How to Overturn an Oligarchy
Matt Stoller (BIG by Matt Stoller)Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
The Chicago School - the faction of economists who took over the world in the Reagan years - rejected any kind of politics that took account of the role that power played in the economy. They insisted that if workers accepted a starvation wage, it was because they had a "revealed preference" for going hungry - and not because they needed a union to force their bosses to pay them enough to live on.
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
The Chicago School replaced this kind of power-centric analysis with something they called "efficiency":
> If you were coerced by a dominant supplier, but an economist showed there was no loss of output, then that was just vigorous competition. Gradually, the notion that the antitrust laws protect business from economic violence fell away. The result is an economy of coercion machines, from Amazon to pharmacy benefit managers to RealPage.
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
The mere existence of a law - in 2025, nearly half a century into the neoliberal era - that mentions "coercion" marks a profoud shift in ideology, a recovery of the idea that we are always under threat of "a conspiracy against the public...some contrivance to raise prices."
In a way, this just proves how right Trump is: the American way of life really *is* under threat from the radical Marxist ideology...of Adam Smith.
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Cory Doctorow
in reply to Cory Doctorow • • •Sensitive content
I'm on a tour with my new book *Enshittification*!
Catch me next in #Brooklyn, #NewOrleans and #Chicago!
Full schedule with dates and links at:
pluralistic.net/tour
Tune into tonight's event with former FTC chair Lina Khan at 19hET via the Brooklyn Public Library's livestream:
youtube.com/@Brooklyn-Public-L…
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BPLvideos
YouTubePteryx the Puzzle Secretary
in reply to Cory Doctorow • • •...which, one would hope, comes with him being less eager to kill homeless people. >_>
(I tend to see Gavin Newsom as more "the enemy of my enemy" than an actual ally.)
G. Gibson reshared this.
Else, Someone
in reply to Cory Doctorow • • •Now if only we could efficiently implement some kind of "pricing consultancies" for workers and consumers!..
#pricing #chargemore #selfemployment #antiemployment #employment #unions
Cory Doctorow reshared this.
Neven Jovanovic
in reply to Cory Doctorow • • •The point about the unions is great too.
HighlandLawyer
in reply to Cory Doctorow • • •Cory Doctorow reshared this.
Cory Doctorow
in reply to HighlandLawyer • • •HighlandLawyer
in reply to Cory Doctorow • • •#TootingLiberationFront
Indieterminacy
in reply to Cory Doctorow • • •