A Study in Cyberpunk Economic Philosophy

Saturday, 11 February 2017 09:11 by The Lunatic

How many times have you read a book, or saw a movie, with a monopolistic “mega corporporation” as a primary plot element - a giant company run by a powerful, brilliant, egocentric, multi-gazillionaire?

It’s usually a male character at the helm, either the company founder or the founder's son, and he ruthlessly destroys every competitor and government agency that gets in the way of his quest to own it all and rule the world; It's a common theme in cyberpunk fiction stories.

But I’d like to take a slightly different approach to the idea of the giant company that we’ll just call ... megacorp.

In my scenario, the corporate merger mania that exists today continues unabated, as companies strive for higher efficiencies and economy of scale. Coke and Pepsi merge. Nestle and Tyson Foods do the same. Google and Microsoft and Facebook. Ford and GM and Tesla. FedEx and UPS. Novartis and Pfizer. United and American and Delta airlines. Then slowly they all start merging together. Berkshire Hathaway gets swallowed up along the way.

In the process, the large shareholders of the initial companies end up with smaller and smaller chunks of the combined entities, so the total number of smaller shareholders goes up but no one person owns a significant share. After a few mergers, a previous “majority” shareholder might end up with 5%. They merge again and that shareholder now owns 2.5%. The incredibly large number of individual shareholders suddenly have all the power.

Eventually, the individual shareholders of all these companies realize that the widely distributed ownership structure is actually beneficial, so they vote to put shareholder limits in place: no one person can own more than 1% of the company, with an annual decrease over ten years down to .1% - and then it goes even lower as more mergers take place.

In the end, they all finally merge together to form the almighty, invincible, unstoppable “megacorp”.

But instead of the popularized evil empire, I envision a different outcome: nearly everyone works for megacorp, More...