feb 14, 1900 - Issues of Enforcement
Description:
The degree of Federal antitrust enforcement makes a difference in the overall degree of antitrust action in the economy.
The main reason one administration might enforce the antitrust laws more or less strictly than another is differences in political philosophies about the market economy and the wisdom of intervention by government. The active antitrust perspective is that competition is insufficient in some circumstances to achieve allocative efficiency and ensure fairness to consumers and competing firms. This type of government intervention maintains the viability and vibrancy of the market system and thus allows society to reap its full benefits. On the other hand, the laissez-faire perspective holds that antitrust intervention is largely unnecessary, particularly as it relates to monopoly. They believe this because a process of creative destruction occurs, in which today’s monopolies are eroded and eventually destroyed by tomorrow’s technologies. The government therefore should not try to break up the monopoly, it should stand aside and allow the long-run competitive process to work.
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APEC CH 30 Timeline
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