Blair write...

Website: https://economicsfromthetopdown.com/

Hi guys,

Long-time listener here. Just finished listening to episode 562 (Apple Loses It's Shine). I wanted to point out that the 'consumer welfare' standard of antitrust isn't a legislative standard.

Look through the Sherman Antitrust Act (https://www.archives.gov/milestone-documents/sherman-anti-trust-act) and you won't find any mention of 'consumers' or 'prices'. The consumer welfare standard is a *judicial* interpretation of the law, pioneered by Robert Bork, with the express interest of making it (nearly) impossible to actually prosecute antitrust cases.

Reading through the Sherman Act, and it's plainly about limiting the *power* of large corporations. In fact, by the standards of today's legaleze, the text is surprisingly clear:

"Sec. 1. Every contract, combination in the form of trust or other- wise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal."

"Sec. 2. Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor"

"Sec. 3. Every contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade or commerce ... is hereby declared illegal."

To your point, the DoJ will probably have to grapple with consumer welfare, but that's only because the court system has, for decades, been packed with judges that believe it.

Thanks for the consistently great work.