Regulator Bullies

Outside the Federal Trade Commission building in Washington, D.C., twin sculptures sum up the government’s attitude toward economic freedom. They depict a muscular figure heroically holding back a wild horse that presumably would wreak havoc if let loose. The title is “Man Controlling Trade”.

How typical of government. Trade is an activity in which two people realize mutual gains through voluntary exchange. It’s win-win — or else it doesn’t occur. Commerce is cooperation. It’s the essence of civilization.

Yet the FTC likens trade to a wild animal that someone — government, of course — must control.

I understand why people think antitrust law is necessary. They fear that businesses will collude to raise prices. But if the government has not created barriers to entry, even a lone seller of a product can’t charge whatever he wants because unwarranted high prices and profits will draw competition. What counts is not the number of firms in a market but the potential for competition. …

Read more: John Stossel: Regulator Bullies