Avast ye! The FTC be but a scurvy crew, tusslin' with Amazon, unveilin' Biden's grand scheme to plunder the economy!
2023-09-28
Arrr, ye scurvy lawsuits be but a glimpse o' the mighty tide turnin' against the Big Tech scallywags! A resurgent wave o' populism be sweepin' across the globe, makin' 'em tremble in their digital boots. Hoist the Jolly Roger, me hearties, for justice be 'pon us!
Over the past five years, Big Tech firms have faced numerous antitrust lawsuits from various sources, including states, the U.S. Department of Justice, the U.S. Federal Trade Commission, and the European Union. Now, they have a new adversary in the form of FTC Chair Lina Khan. Chair Khan, known for her progressive economic policy, aims to expand the role and authority of the FTC beyond protecting consumers from fraud and monopolistic prices. She envisions the FTC becoming a government agency focused on restructuring American industry and exerting control over big business.The lawsuits against Big Tech reflect a resurgent populist sentiment, with politicians from both the Republican and Democrat parties expressing mistrust towards large corporations. However, it is worth considering that big-tech companies like Amazon have brought significant advantages to consumers and supply chains worldwide. The growth of e-commerce, led by Amazon, has been well-received by customers, with almost 80% reporting high satisfaction. Despite this, antitrust activists argue that it is detrimental when bigger businesses out-compete smaller rivals, regardless of the benefits to consumers.
Chair Khan's lawsuit against Amazon reflects this perspective, and it is essential to recognize the larger economic debate surrounding antitrust. The Reagan administration, on the other hand, focused on a consumer welfare standard for antitrust, emphasizing that companies should not harm consumers. The redirection of antitrust towards achieving social goals goes against decades of U.S. Supreme Court rulings, which prioritize consumer welfare and competition.
The choice between these two visions of antitrust lies with elected officials. The Reaganite consumer welfare standard led to significant economic growth and allowed for the flourishing of innovative industries. Chair Khan's alternative suggests entrusting antitrust agencies to regulate and restructure the broader American economy in the interest of fairness to competitors, regardless of consumer benefit. This approach, exemplified by the push to break up Amazon, aligns with President Biden's administration's central planning approach. Despite Chair Khan's concerns about centralized power, she seems comfortable accumulating unchecked power within the federal government.