In addition to discussing politicians and insider trading, I also was asked about antitrust laws during my recent CNBC appearance.
As you might imagine, I expressed skepticism about Biden’s plan for a more interventionist approach.
My view is that mergers should be governed by the market, not by politicians.
Especially when politicians have created a Catch-22 situation with antitrust laws.
Companies can be accused of improper behavior regardless of what they do.
- If they charge more than their competitors, that’s supposedly evidence of monopoly power.
- If they charge the same as their competitors, that’s supposedly evidence of collusion.
- If they charge less than their competitors, that’s supposedly evidence of predatory pricing.
Just like the poem from The Incredible Bread Machine.
For today, let’s focus on the specific issue of “consumer welfare,” which has limited the folly of antitrust policy by creating a presumption that mergers are…
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Utopia, you are standing in it! 
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