George Stigler won a Nobel Prize for his work on the economics of regulation. He wrote extensively about regulatory capture, and in fact coined the term. He was one of only a few sane souls who stubbornly insisted that regulations be judged by their actual results, not their intended results. Good intentions, however noble, are not enough. Here’s an example of Stigler at his finest:
Regulation and competition are rhetorical friends and deadly enemies: over the doorway of every regulatory agency save two should be carved: “Competition Not Admitted.” The Federal Trade Commission’s doorway should announce , “Competition Admitted in Rear,” and that of the Antitrust Division, “Monopoly Only by Appointment.”
-George Stigler, “Can Regulatory Agencies Protect the Consumer?”, from The Citizen and the State: Essays on Regulation (1975), p. 183.
Posted in Economics, Great Thinkers, regulation
Tagged Antitrust, competition, economic regulation, economics nobel, ftc, george stigler, good intentions, nobel, regulation, regulations, results, stigler
Wayne Crews and I have an article in today’s American Spectator about the antitrust crusade against Intel. Our key points:
-An FTC picking winners and losers is not capitalism. It is crony capitalism.
-Chips in “Wintel” desktop computers increasingly constitute just one subset of a vast semiconductor market. Only a small fraction of the chips in non-PC devices are Intel’s — and these devices are where the future lies.
-Regulators’ charges against Intel have changed over the years, but their verdict always remains the same: guilty. Suspicious.
-We’d be better off prosecuting the DOJ and the FTC for colluding against free enterprise.
Posted in Antitrust, Economics, Publications, regulation, Technology, The Market Process
Tagged amd, Antitrust, antitrust crusade, capitalism, competition, computer chips, computers, corporate welfare, crony capitalism, doj, ftc, intel, nvidia, Public Choice, rent seeking