Abolition of Antitrust

by Gary Hull

The Abolition of Antitrust asserts that antitrust laws-on economic, legal, and moral grounds-are bad, and provides convincing evidence supporting arguments for their total abolition. Every year, new antitrust prosecutions arise in the U.S. courts, as in the cases against 3M and Visa/MasterCard, as well as a number of ongoing antitrust cases, such as those involving Microsoft and college football's use of the Bowl Championship Series (BCS). Gary Hull and the contributing authors show that these cases-as well as the Sherman Antitrust Act itself-are based on an erroneous interpretation of the history of American business, premised on bad economics. They equivocate between economic and political power-the power to produce versus the power to use physical force. For Hull, antitrust prosecutions are based on a horrible moral that it is acceptable to sacrifi ce America's best producers. The contributors explain how key antitrust ideas, for instance, "monopoly," "restraint of trade," and "anticompetitive behavior," have been used to justify prosecution, and then make clear why those ideas are false. They sketch the historical, legal, economic, and moral reasoning that gave rise to the passage and growth of antitrust legislation. All of the theoretical points in this volume are woven around a number of fascinating cases, both historical and current-including the Charles River Bridge, Alcoa, General Electric, and Kellogg/General Mills. Designed for the uninformed but educated layman, The Abolition of Antitrust makes positive arguments in defense of wealth creation, business, and profi t, explains the proper role of government, and offers a rational view of the meaning of contract and economic freedom. AldineTransaction www.transactionpub.com 978-1-4128-0502-5 Library of 2004058124 Printed in the U.S.A. Cover design by Ellen F. Kane "The essays in this book present a sustained economic, historical, moral, and legal broadside against the various federal statutes known as antitrust doctrine. They explode the cherished myths underlying the antitrust laws, and expose their intellectual fountainhead in a morality of self-sacrifice that is incompatible with individual rights, free enterprise, and objective law. With the publication of this text, businessmen, lawyers, economists, policymakers,legislators, and judges finally have access to a systemic critique of the antitrust laws. From here on, if antitrust continues to violate the rights of businessmen and to ravage the American economy, it is not for lack of knowing how and why."-Adam Mossoff, assistant professor of law, Michigan State University College of Law.

Genres: Economics, Law, Politics, Philosophy

188 pages, Paperback

First published April 25, 2005

Reviews

[David Kopec · Rating 4 out of 5]

The Abolition of Antitrust is a collection of essays that will make you think—in places by turning your traditional concept of ethics on its head, and in others by applying logical and philosophical arguments against regulation regimes that we take for granted. However, the selected essays can be a little repetitive and often fail to offer an important counterpoint by presenting their opponents' arguments in the best light. The essays ask one fundamental question: "Why should businesses who are successful be punished for their success, if they didn't employ force to achieve it?"

Their answer, that they shouldn't, would be more compelling if the authors presented strong economic analysis and empirical evidence. When looking at a market that has been trust-busted are consumers better off? Or are they worse off as the book implies. I'd like to see some data. In fact I'd like to see a lot of data to be convinced. Instead, we get a lot of fairly strong philosophical arguments, but ultimately just that—philosophy, rather than real world data.

Ultimately, I did not walk away from the book convinced that all anti-trust is a bad thing. I did walk away convinced that perhaps anti-trust laws have too broad a scope and are applied too vigorously. But when you read a book with an extreme premise, it's a success in its persuasion if it takes your opinion from mainstream to somewhere between mainstream and its eccentricity.

[Ben]

via James Steele II, contributing author: Eric Daniels