The Conservative Case for Antitrust

Fewer competitors leads to less competition and more collusion. There is nothing new under the sun. Even in the 18th century, Adam Smith wrote in The Wealth of Nations that, “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.” A little later John Stuart Mill echoed the sentiment, “Where competitors are so few, they always end by agreeing not to compete.”

Capitalism without competition is not capitalism.

Competition creates clear price signals in markets, driving supply and demand. It promotes efficiency. Competition creates more choices, more innovation, economic development and growth, and a stronger democracy by dispersing economic power. It promotes individual initiative and freedom. Competition matters because it prevents unjust inequality, rather than the transfer of wealth from consumer or supplier to the monopolist. If there is no competition, consumers and workers have less freedom to choose.

Capitalism is a game where competitors play by rules that everyone agrees. Today, the state, as referee, has not enforced rules that would increase competition, and through regulatory capture has created rules that limits competition. All too often today, monopolies exist through lobbying, regulation and the helping hand of government.

Link here.