General Discussion
In reply to the discussion: When will we hit the tipping point in this country again? [View all]Selatius
(20,441 posts)One of the aggravating factors that helped spark the American Revolution was the issue of British tea. It sounds stupid, but the reason why many Founders had major trust issues with corporations was that British Parliament, after much lobbying by representatives of trade groups in London, had granted a legal monopoly to the British East India Company to sell tea to the American Colonies. They were free to charge as high as price as the market could bear, and while tea itself wasn't a fundamental necessity, it did spark worry that Parliament could easily grant other monopolies to companies to sell things that were considered necessities or things that were in very short supply and were needed.
This issue added onto other issues that were outstanding between the colonists and the British Empire. The other big issue was the outlawing of colonial paper currency. Prior to the Currency Act of 1764, the individual colonies were free to issue paper money as a medium of exchange to facilitate trade and commerce and for the payment of debts in the absence of sufficient money from the British back home. When it was explained to banking institutions in London how paper currency in the colonies worked, that they were considered bills of credit instead of bills of debt whose introduction came at the expense of payment of interest to those banks from which the funds were borrowed, their representatives began lobbying British Parliament to outlaw the colonial currencies and require the colonies to pay its tax debts in gold coin borrowed from English banks with interest. They wished the colonies to be hooked into the same system that the rest of Europe was locked in to.
All of this added to hatred of corporations. It simply allowed small groups of people to become supremely wealthy, and they would use that wealth to buy favors and preferential treatment above everybody else who was poorer. People became tired of being screwed.