The End of Power

Waves of Power

Though the concentration of power has waxed and waned over the centuries, the influence of the powerful has grown since the Industrial Revolution. Since the early 1900s, nations, the church, institutions and organizations have gotten larger and more complex, acquiring greater reach and power. As a result, the world is now a more stable, secure place. Since World War II, democracy has flourished and has fostered stabilizing international institutions like the United Nations.

Economists Max Weber and Ronald Coase argue that power works best through large, organized and bureaucratic systems. Being bigger is better for achieving the reliable, fair delivery of goods and services. Governments must be large to make and enforce laws, defend nations and regulate economies. Big companies enjoy economies of scale, thus reducing prices and improving quality.

The Great Depression, which punished small players, and both world wars, which required mass, national organization, led people to believe in concentrating power in big governments, large corporations and other dominant institutions. The end of World War II saw the growth of GM and IBM, as well as large...