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The Historic Failure of the Chicago School of Antitrust Mark Glick
Antitrust and Economic History: The Historic Failure of the Chicago School of Antitrust Mark Glick1 Working Paper No. 95 May 2019 ABSTRACT This paper presents an historical analysis of the antitrust laws. Its central contention is that the history of antitrust can only be understood in light of U.S. economic history and the succession of dominant economic policy regimes that punctuated that history. The antitrust laws and a subset of other related policies have historically focused on the negative consequences resulting from the rise, expansion, and dominance of big business. Antitrust specifically uses competition as its tool to address these problems. The paper traces the evolution of the emergence, growth and expansion of big business over six economic eras: the Gilded Age, the Progressive Era, the New Deal, the post-World War II Era, the 1970s, and the era of neoliberalism. It considers three policy regimes: laissez-faire during the Gilded Age and the Progressive Era, the New Deal, policy regime from the Depression through the early 1970s, and the neoliberal policy regime that dominates today and includes the Chicago School of antitrust. The principal conclusion of the paper is that the activist antitrust policies associated with the New Deal that existed from the late 1 Professor, Department of Economics, University of Utah. Email: [email protected]. I would like to thank members of the University of Utah Competition Group, Catherine Ruetschlin, Marshall Steinbaum, and Ted Tatos for their help and input. I also benefited from suggestions and guidance from Gérard Duménil’s 2019 seminar on economic history at the University of Utah. -
1 Freedom to Trade, Free Trade and Laissez-Faire
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by SAS-SPACE FREEDOM TO TRADE, FREE TRADE AND LAISSEZ-FAIRE: ECONOMIC LIBERALISM IN 19TH CENTURY LATIN AMERICA Victor Bulmer-Thomas (A). INTRODUCTION Liberalism in Europe had many dimensions, one of which – especially in the United Kingdom – was the degree to which the market should guide all economic decisions. In Adam Smith’s Wealth of Nations, the ‘hidden hand’ of the market was seen as leading to a big improvement in welfare when compared with the myriad rules and regulations imposed by central governments on their citizens. When David Ricardo developed the Law of Comparative Advantage in his Principles of Political Economy and Taxation, it became a rallying cry for liberals of all persuasions. The end of the tariff on basic grains in 1846, better known as the abolition of the Corn Laws, was considered a major achievement of liberalism in Great Britain and a model for liberals elsewhere. It might have been expected therefore that liberalism in Latin America would have paid equal attention to trade policy, the end of state monopolies and the promotion of competition. Smith and Ricardo were well known in Latin America and their works were widely read. However, liberalism in 19th century Latin America focused primarily on relations between Church and State, the degree of personal freedom from state interference and the constitutional arrangements between central and local governments. The arguments for economic liberalism were much less compelling in Latin America. Indeed, Liberals in power were often less ‘liberal’ than their Conservative opponents. -
Mere Libertarianism: Blending Hayek and Rothbard
Mere Libertarianism: Blending Hayek and Rothbard Daniel B. Klein Santa Clara University The continued progress of a social movement may depend on the movement’s being recognized as a movement. Being able to provide a clear, versatile, and durable definition of the movement or philosophy, quite apart from its justifications, may help to get it space and sympathy in public discourse. 1 Some of the most basic furniture of modern libertarianism comes from the great figures Friedrich Hayek and Murray Rothbard. Like their mentor Ludwig von Mises, Hayek and Rothbard favored sweeping reductions in the size and intrusiveness of government; both favored legal rules based principally on private property, consent, and contract. In view of the huge range of opinions about desirable reform, Hayek and Rothbard must be regarded as ideological siblings. Yet Hayek and Rothbard each developed his own ideas about liberty and his own vision for a libertarian movement. In as much as there are incompatibilities between Hayek and Rothbard, those seeking resolution must choose between them, search for a viable blending, or look to other alternatives. A blending appears to be both viable and desirable. In fact, libertarian thought and policy analysis in the United States appears to be inclined toward a blending of Hayek and Rothbard. At the center of any libertarianism are ideas about liberty. Differences between libertarianisms usually come down to differences between definitions of liberty or between claims made for liberty. Here, in exploring these matters, I work closely with the writings of Hayek and Rothbard. I realize that many excellent libertarian philosophers have weighed in on these matters and already said many of the things I say here. -
INTL 407/507 Development and Social Change in Europe
INTL 407/507 Development and Social Change in Europe Course Instructor: Dr. Geoff Kennedy Office: PLC 371 Office Hours: Email: [email protected] Phone: (541) 346-8976 Course Description Europe has rarely been the subject of ‘development’ studies. At best, Europe serves as a model of normality against which processes of socio-economic development in the so- called ‘Third World’ are assessed. It is on this basis that countries of the Global South are encouraged to replicate the European path of modernization. While it has become increasingly common to question the appropriateness of the policy prescriptions that have resulted from the dominant interpretations of European development given the significant differences between the historical contexts in which development is occurring between the European ‘core’ and the ‘periphery’ in the Global South, this course seeks to problematize the conceptual and historical limitations embedded in prevailing interpretations of European development and social change. The course is divided into three sections. The first section looks at an array of conceptual approaches to the study of European development and social change, and examines European development between the French Revolution and World War II. The second section examines the diversity of developmental processes underway in the various regions of Europe over the course of the post-war period: liberal capitalism in the West, dictatorship and underdevelopment in the South, and socialism in the East. The third section looks at the processes of neoliberal convergence and crisis in the context of European integration. International Studies The unique character and focus of the Department of International Studies (IS) is distinctly captured in the phrase ‘Culture and Development’. -
Richard T. Ely and Woodrow Wilson at “The Hopkins”
SUBSCRIBE NOW AND RECEIVE CRISIS AND LEVIATHAN* FREE! “The Independent Review does not accept “The Independent Review is pronouncements of government officials nor the excellent.” conventional wisdom at face value.” —GARY BECKER, Noble Laureate —JOHN R. MACARTHUR, Publisher, Harper’s in Economic Sciences Subscribe to The Independent Review and receive a free book of your choice* such as the 25th Anniversary Edition of Crisis and Leviathan: Critical Episodes in the Growth of American Government, by Founding Editor Robert Higgs. This quarterly journal, guided by co-editors Christopher J. Coyne, and Michael C. Munger, and Robert M. Whaples offers leading-edge insights on today’s most critical issues in economics, healthcare, education, law, history, political science, philosophy, and sociology. Thought-provoking and educational, The Independent Review is blazing the way toward informed debate! Student? Educator? Journalist? Business or civic leader? Engaged citizen? This journal is for YOU! *Order today for more FREE book options Perfect for students or anyone on the go! The Independent Review is available on mobile devices or tablets: iOS devices, Amazon Kindle Fire, or Android through Magzter. INDEPENDENT INSTITUTE, 100 SWAN WAY, OAKLAND, CA 94621 • 800-927-8733 • [email protected] PROMO CODE IRA1703 The Shaping of a Future President’s Economic Thought Richard T. Ely and Woodrow Wilson at “The Hopkins” F CLIFFORD F. THIES AND GARY M. PECQUET homas Woodrow Wilson (1856–1924) was the first and is still the only president oftheUnitedStatestoholdanearneddoctoraldegree.HisPh.D.wasawarded T by the Johns Hopkins University (“The Hopkins”) in 1886. He was also the president of an institution of higher education and, unique among U.S. -
Wilson's New Freedom
p0538-543aspe-0517s5 10/17/02 8:54 AM Page 538 Wilson’s New Freedom MAIN IDEA WHY IT MATTERS NOW Terms & Names Woodrow Wilson established The passage of the Nineteenth •Carrie Chapman •Federal Reserve a strong reform agenda as a Amendment during Wilson’s Catt System progressive leader. administration granted women •Clayton Antitrust •Nineteenth the right to vote. Act Amendment •Federal Trade Commission (FTC) One American's Story On March 3, 1913, the day of Woodrow Wilson’s inauguration, 5,000 woman suffragists marched through hostile crowds in Washington, D.C. Alice Paul and Lucy Burns, the parade’s organizers, were members of the National American Woman Suffrage Association (NAWSA). As police failed to restrain the rowdy gathering and congressmen demanded an investi- gation, Paul and Burns could see the momentum building for suffrage. By the time Wilson began his campaign for a second term in 1916, the NAWSA’s president, Carrie Chapman Catt, saw victory on the horizon. Catt expressed her optimism in a letter to her friend Maud Wood Park. A PERSONAL VOICE CARRIE CHAPMAN CATT “ I do feel keenly that the turn of the road has come. I really believe that we might pull off a campaign which would mean the vote within the ▼ next six years if we could secure a Board of officers who would have sufficient Carrie Chapman Catt momentum, confidence and working power in them. Come! My dear Mrs. Park, gird on your armor once more.” —letter to Maud Wood Park Catt called an emergency suffrage convention in September 1916, and invit- ed President Wilson, who cautiously supported suffrage. -
Gold Democrats and the Decline of Classical Liberalism, 1896–1900
SUBSCRIBE NOW AND RECEIVE CRISIS AND LEVIATHAN* FREE! “The Independent Review does not accept “The Independent Review is pronouncements of government officials nor the excellent.” conventional wisdom at face value.” —GARY BECKER, Noble Laureate —JOHN R. MACARTHUR, Publisher, Harper’s in Economic Sciences Subscribe to The Independent Review and receive a free book of your choice* such as the 25th Anniversary Edition of Crisis and Leviathan: Critical Episodes in the Growth of American Government, by Founding Editor Robert Higgs. This quarterly journal, guided by co-editors Christopher J. Coyne, and Michael C. Munger, and Robert M. Whaples offers leading-edge insights on today’s most critical issues in economics, healthcare, education, law, history, political science, philosophy, and sociology. Thought-provoking and educational, The Independent Review is blazing the way toward informed debate! Student? Educator? Journalist? Business or civic leader? Engaged citizen? This journal is for YOU! *Order today for more FREE book options Perfect for students or anyone on the go! The Independent Review is available on mobile devices or tablets: iOS devices, Amazon Kindle Fire, or Android through Magzter. INDEPENDENT INSTITUTE, 100 SWAN WAY, OAKLAND, CA 94621 • 800-927-8733 • [email protected] PROMO CODE IRA1703 Gold Democrats and the Decline of Classical Liberalism, 1896–1900 —————— ✦ —————— DAVID T. BEITO AND LINDA ROYSTER BEITO n 1896 a new political party was born, the National Democratic Party (NDP). The founders of the NDP included some of the leading exponents of classical I liberalism during the late nineteenth century. Few of those men, however, fore- saw the ultimate fate of their new party and of the philosophy of limited government that it championed. -
Chapter 18 Video, “The Stockyard Jungle,” Portrays the Horrors of the Meatpacking Industry First Investigated by Upton Sinclair
The Progressive Movement 1890–1919 Why It Matters Industrialization changed American society. Cities were crowded with new immigrants, working conditions were often bad, and the old political system was breaking down. These conditions gave rise to the Progressive movement. Progressives campaigned for both political and social reforms for more than two decades and enjoyed significant successes at the local, state, and national levels. The Impact Today Many Progressive-era changes are still alive in the United States today. • Political parties hold direct primaries to nominate candidates for office. • The Seventeenth Amendment calls for the direct election of senators. • Federal regulation of food and drugs began in this period. The American Vision Video The Chapter 18 video, “The Stockyard Jungle,” portrays the horrors of the meatpacking industry first investigated by Upton Sinclair. 1889 • Hull House 1902 • Maryland workers’ 1904 opens in 1890 • Ida Tarbell’s History of Chicago compensation laws • Jacob Riis’s How passed the Standard Oil the Other Half Company published ▲ Lives published B. Harrison Cleveland McKinley T. Roosevelt 1889–1893 ▲ 1893–1897 1897–1901 1901–1909 ▲ ▲ 1890 1900 ▼ ▼ ▼▼ 1884 1900 • Toynbee Hall, first settlement • Freud’s Interpretation 1902 house, established in London of Dreams published • Anglo-Japanese alliance formed 1903 • Russian Bolshevik Party established by Lenin 544 Women marching for the vote in New York City, 1912 1905 • Industrial Workers of the World founded 1913 1906 1910 • Seventeenth 1920 • Pure Food and • Mann-Elkins Amendment • Nineteenth Amendment Drug Act passed Act passed ratified ratified, guaranteeing women’s voting rights ▲ HISTORY Taft Wilson ▲ ▲ 1909–1913 ▲▲1913–1921 Chapter Overview Visit the American Vision 1910 1920 Web site at tav.glencoe.com and click on Chapter ▼ ▼ ▼ Overviews—Chapter 18 to preview chapter information. -
Resilient Liberalism in Europe's Political Economy
Resilient Liberalism in Europe’s Political Economy Why have neo-liberal economic ideas been so resilient since the 1980s, despite major intellectual challenges, crippling financial and political crises, and failure to deliver on their promises? Why do they repeatedly return, not only to survive but to thrive? This groundbreaking book pro- poses five lines of analysis to explain the dynamics of both continuity and change in neo-liberal ideas: the flexibility of neo-liberalism’s core prin- ciples; the gaps between neo-liberal rhetoric and reality; the strength of neo-liberal discourse in debates; the power of interests in the strategic use of ideas; and the force of institutions in the embedding of neo-liberal ideas. The book’s highly distinguished group of authors shows how these possible explanations apply across the most important domains: fiscal policy; the role of the state; welfare and labour markets; regulation of competition and financial markets; management of the euro; and corporate governance – in the European Union and across European countries. vivien a. schmidt is Jean Monnet Professor of European Integration and Professor of International Relations and Political Science at Boston University, and Founding Director of Boston University’s Center for the Study of Europe. mark thatcher is Professor in Comparative and International Politics in the Department of Government at the London School of Economics and Political Science. contemporary european politics Consulting Editor: Andreas Føllesdal, University of Oslo Contemporary European Politics presents the latest scholarship on the most important subjects in European politics. The world’s leading scholars provide accessible, state-of-the-art surveys of the major issues that face Europe now and in the future. -
Liberalism, Marxism and Democratic Theory Revisited: Proposal of a Joint Index of Political and Economic Democracy
brazilianpoliticalsciencereview ARTICLE Liberalism, Marxism and Democratic Theory Revisited: Proposal of a Joint Index of Political and Economic Democracy Angelo Segrillo Department of History, University of São Paulo Liberalism and Marxism are two schools of thought which have left deep imprints in sociological, political and economic theory. They are usually perceived as opposite, rival approaches. In the field of democracy there is a seemingly in- surmountable rift around the question of political versus economic democracy. Liberals emphasize the former, Marxists the latter. Liberals say that economic democracy is too abstract and fuzzy a concept, therefore one should concentrate on the workings of an objective political democracy. Marxists insist that political democracy without economic democracy is insufficient. The article argues that both propositions are valid and not mutually exclu- sive. It proposes the creation of an operational, quantifiable index of economic democracy that can be used alongside the already existing indexes of political democracy. By using these two indexes jointly, political and economic democracy can be objectively evaluated. Thus, the requirements of both camps are met and maybe a more dialogical approach to democracy can be reached in the debate between liberals and Marxists. The joint index is used to evaluate the levels of economic and political democracy in the transition countries of Eastern Europe. Keywords: democratic theory; transition countries; economic democracy Introduction iberalism and Marxism are two schools of thought which have left deep imprints Lin political, sociological and economic theory. Both have been very fruitful in il- luminating a wide range of common issues across these fields and yet are usually perceived 8 bpsr Liberalism, Marxism and Democratic Theory Revisited: Proposal of a Joint Index of Political and Economic Democracy as opposite, rival approaches contradicting each other in general. -
The Concept of a Liberal Society If-) J\MF...N.)~P
CHAPTER ONE "\ Fllol"\: LOLl)s 'M~1L'1.., It)[ \..'~tllf\)_ 1'Ilfll>f1\ON The Concept of a Liberal Society If-) J\MF...n.)~P. (l'?fJ,I'lCl.I). I 1. America and Europe The analysis which this book contains is based on what might be called the storybook truth about American his tory: that America was settled by men who Hed hom the feudal and clerical oppressio:qs 'of the Old World. If there is anything in this view, as, old as the national folklore itself, then the outstanding thing about the American community in Western history ought to be the non existence of those oppreSsions, or since the reaction against them was in the. broadest sense liberal, that the American community is a liberal community. We are confronted, as it were, with a kind of inverted Trotskyite law of combined development, America skipping the feudal stage of liistory as Russia presumably skipped the liberal stage. I know that I am using broad terms broadly here. "Feudalism" refers technically to the institutions of the medieval era, and it is well known that aspects of the decadent feudalism of the later period, such as p.!l!t!o- J geniture, entail, and quitrents, were present in America even "in the eighteenth century. • "Liberalism" is an even • There is no precise term for feudal institutions and feudal ideas as they persisted into the modern period amid the national ,states and 000- I nomic movements which progressively undermined them. The phrases 3 \ 1 THE CONCEPT OF A LIBERAL SOCIETY " FEUDALISM AND THE AMERICAN EXPERIENCE vaguer term, clouded as it is by all sorts of modem social approach. -
The Road to Serfdom
F. A. Hayek The Road to Serfdom ~ \ L f () : I~ ~ London and New York ( m v ..<I S 5 \ First published 1944 by George Routledge & Sons First published in Routledge Classics 2001 by Routledge 2 Park Square, Milton Park, Abingdon, OX14 4 RN 270 Madison Avenue, New York, NY 10016 Repri nted 2001, 2002, 2003, 2004, 2006 Routledge is an imprint ofthe Taylor CJ( Francis Group, an informa business © 1944 F. A. Hayek Typeset in Joanna by RefineCatch Limited, Bungay, Suffolk Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall All rights reserved. No part ofthis book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 10: 0-415-25543-0 (hbk) ISBN 10: 0-415-25389-6 (pbk) ISBN 13: 978-0-415-25543-1 (hbk) ISBN 13: 978-0-415-25389-5 (pbk) CONTENTS PREFACE vii Introduction 1 The Abandoned Road 10 2 The Great Utopia 24 3 Individualism and Collectivism 33 4 The "Inevitability" of Planning 45 5 Planning and Democracy 59 6 Planning and the Rule of Law 75 7 Economic Control and Totalitarianism 91 8 Who, Whom? 1°5 9 Security and Freedom 123 10 Why the Worst Get on Top 138 11 The End ofTruth 157 12 The Socialist Roots of Nazism 171 13 The Totalitarians in our Midst 186 14 Material Conditions and Ideal Ends 207 15 The Prospects of International Order 225 2 THE GREAT UTOPIA What has always made the state a hell on earth has been precisely that man has tried to make it his heaven.