Today, Dr. Arthur Laffer, renowned conservative economist, released his first paper on antitrust policy in over 25 years. In his report titled “Antitrust Laws Will Make Inflation Worse,” he specifically focuses on a new wave of antitrust proposals aimed at America’s tech industry. At a crucial time of debate over the future of American antitrust policy, Dr. Laffer’s paper is undoubtedly required reading for any and every lawmaker engaging on these issues.
In his paper, Dr. Laffer explains how S. 2992:
- Will Increase inflation
- Undermines American antitrust principles like the Consumer Welfare Standard
- Lacks data and research to back up its central goal and intended impact
- Grows the power of the executive branch with no increase in oversight
“As conservatives consider how to approach proposals that would further increase the size and power of government, Dr. Laffer’s paper is perhaps the most important reading they can do,” said Steve DelBianco, President of NetChoice. “Dr. Laffer masterfully explains how S. 2992 would worsen inflation, undermine American antitrust law, and harm consumers.”
“As lawmakers consider whether to support radical antitrust legislation at a time of high inflation, Dr. Laffer provides expert analysis and research to explain why every lawmaker should oppose S. 2992.” continued DelBianco. “If Congressional Republicans don’t pump the brakes on Biden’s radical antitrust agenda they will make their job of stabilizing the American economy even harder if they retake control of Congress in 2023.”
The report is being released by the Committee to Unleash Prosperity. You can find their summary of the report here. Their key findings are:
- Competition in the digital economy is lowering prices for consumers. For one example, digital ad time and space that cost $100 in 2009 would cost $71 in 2022–despite overall inflation in our economy.
- The antitrust proposals are full of handouts to special interests. For example, Sen. Amy Klobuchar’s American Innovation and Choice Act would shelter Target, which is based in her home state, from its requirements for years.
- Antitrust enforcement would hamper innovation and potential efficiencies in the digital marketplace.
- Third-party retail businesses on Amazon are actually growing faster than Amazon’s retail business.