Tuesday , October 15 2019
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Tag Archives: Competition

Gramm and Ellig Bust Myths that Fuel Antitrust Activism… But…

Today at a seminar sponsored by the Law and Economics Center at GMU’s Scalia School of Law I lectured, in part, on the myth that the Sherman Antitrust Act of 1890 was meant to protect consumers from monopolists. The truth behind that piece of legislation is quite the opposite of what its p.r. proclaims. In reality, the Sherman Act was meant to protect some businesses from the competition of others – which means that it is an anti-consumer piece of legislation. In today’s Wall Street...

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Some Links

David Henderson’s review of John Quiggin’s Economics in Two Lessons is wonderful. Pierre Lemieux details some of the Trump administration’s trade nuttiness. Here’s the abstract of William Easterly’s latest paper: The lack of growth response to “Washington Consensus” policy reforms in the 1980s and 1990s led to widespread doubts about the value of such reforms. This paper updates these stylized facts by analyzing moderate to extreme levels of inflation, black market premiums, currency...

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Quotation of the Day…

… is from page 13 of John Bates Clark’s 1901 volume, The Control of Trusts: Let any combination of producers raise the prices beyond a certain limit, and it will encounter this difficulty. The new mills that will spring into existence will break down prices; and the fear of these new mills, without their actual coming, is often enough to keep prices from rising to an extortionate height. The mill that has never been built is already a power in the market; for if it surely will be built...

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Are You Sure Stoller’s Piece Really Isn’t from The Onion?

For anyone who has studied the work and influence of the late Aaron Director – especially as that work and influence helped to successfully bulldoze off of antitrust economics and policy the heavy, thick layers of truly awful ‘economics’ that had encrusted it for much of the 20th century – encountering Matt Stoller’s post on Director is surreal. I encountered this post through David Henderson at EconLog. David is too kind to Stoller. Stoller is correct that what by the mid-1970s had come...

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More Globalization (Please!)

When I posted the first of three videos in Mercatus’s new Globalization series I carelessly missed the happy fact that videos numbers two and three are also already available. Here they are. (In the last video, I believe that the benefits of globalization for middle-income workers in developed countries is overstated. It’s untrue that wages for many of these workers have stagnated for a “generation.“) Comments

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Quotation of the Day…

… is from page 105 of the 2004 Liberty Fund edition of David Ricardo’s 1817 treatise, On the Principles of Political Economy and Taxation: Like all other contracts, wages should be left to the fair and free competition of the market, and should never be controlled by the interference of the legislature. Comments

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Bonus Quotation of the Day…

… is from page 125 of my colleagues Virgil Storr’s and Ginny Choi’s just-published book, Do Markets Corrupt Our Morals? (original emphasis): Competition [in markets] ensures that only those who serve others can maintain and accumulate wealth. Stated another way, the more competitive the market, the more becoming and staying wealthy depend on discovering what consumers (including poor consumers) want…. Markets, thus, offer less protection of the rich’s wealth than nonmarket contexts and...

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Some Links

My former GMU colleague – now the holder of the Hugh H. Macaulay Chair in Economics at Clemson University – Tom Hazlett brilliantly exposes the many intellectual fallacies that fuel “hipster antitrust.” A slice: Every business acquires inputs and then sells outputs. In between, some magical process creates new value. Cooperative deals between suppliers and buyers today may well erupt in rivalrous tension tomorrow. That’s actually a good thing: We want to encourage shifting alliances....

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Quotation of the Day…

… is from pages 643-644 of the final (2016) volume – Bourgeois Equality – of Deirdre McCloskey’s great trilogy on the essence of bourgeois values, on their transmission, and on their essential role in modernity: Contrary to [Thomas] Carlyle and [Charles] Sellers, however, bourgeois life is in fact mainly cooperative and altruistic, and when competitive it is good for the poorest amongst us. We should have more of it. Comments

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Bonus Quotation of the Day…

… is from page 729 of the 2007 Liberty Fund edition (Bettina Bien Greaves, ed.) of Ludwig von Mises’s 1949 treatise, Human Action: The reformers, in exhorting people to turn away from selfishness, address themselves to capitalists and entrepreneurs, and sometimes, although only timidly, to wage earners as well. However, the market economy is a system of consumers’ supremacy. The sermonizers should appeal to consumers, not to producers. They should persuade the consumers to renounce...

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