This is a link to a new article previewing The New Road to Serfdom: The Curse of Bigness and the Failure of Antitrust (49 U. Mich. J. L. Reform 1 (2015)), http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2618522, a new spin on Fredrich Hayek’s classic that is much beloved by the Chicago School and its adherents. Unlike, Hayek, however, the author argues not that the road to economic tyranny is brought on by government intervention but instead by big business growth by acquisition and the stifling of internal growth. He concludes that:
“It is of great significance for the nation that the current merger boom is not driven by optimism or an expanding economy but just the opposite – because companies are unable to figure out how to increase revenue and profits internally, and are seeking to compensate by growing through mergers.”
“At bottom, antitrust policy is about values. It is about what kind of society we wish to live in. There is no way around that. Antitrust policy both reflects and affects national values. We, as society, value efficiency and consumer welfare. But those are not our only values. If we have one value that transcends all others, it is freedom. Consolidated power – both governmental and commercial – threatens freedom. Just as constitutional law is a key tool for limiting consolidated governmental power, antitrust law is a key tool for limiting consolidated commercial power. An antitrust policy that forgets that reneges on one of its most critical historical roles.”
http://www.corporatecrimereporter.com/news/200/the-curse-of-bigness-and-the-failure-of-antitrust/
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Written by Daniel Mogin