Forces Driving More
America’s revolution had liberated the country from a web of
loyalties and insider connections reminiscent of European rule. Just
in time, Adam Smith’s new book, The Wealth of Nations, set forward the
formula for nationwide prosperity: ample numbers of buyers and sellers
possessing the same information, all acting independently of each other
without recrimination.
Jefferson’s plan was summarily adopted. Aligned with market con-
ditions laid out by Smith, and values espousing opportunity and in-
dependence, individuals initially received 60 acres of land. As some
farmers became more productive and earned more profits, they bought
more land. As mechanization and technology were integrated into
farming, the cycle accelerated. Slowly but surely, the competitive con-
ditions by which markets operated were changing.
In 9 9 , Thomas Campbell trumpeted that “the farm is a factory.”
Producing more food came down to “mass production, cost account-
ing, specialized machinery, and skilled labor.” Wanting a larger fac-
tory, he bought the biggest tractors available and planted some 00,000
acres ( square miles) in wheat in Montana and Wyoming. The
farm thrived, a harbinger of things to come. In 9 5 , the total number
of farms peaked near seven million nationwide before declining.
The bulk of food production was gradually shifting toward the larg-
est farms.
Though farms were consolidating, the businesses supporting farm-
ing were consolidating even faster. Farmers were having to deal with
powerful banks and railroads. Ninety-five percent of farm implements
were controlled by a single company. Meat processors had pooled their
stocks into trusts and acted as a single business. Known as the “Beef
Trust,” their immense size and control made it easy to exploit both
farmers and consumers.
From the public outrage that ensued, the government enacted
antitrust legislation. A wave of “trustbusting” swept over the nation.
Large businesses were broken up. Executives who colluded to fix prices
were sent to prison. Ironically, breaking up the trusts had set the stage
for their replacement—large corporations. As growth and consolida-
tion continued, Jefferson’s idyllic vision of competition, independence,
and opportunity all but vanished.