Economic Regulation vs. Competition: Uncle Sam the Monopoly Man
![handle is hein.journals/ylr82 and id is 891 raw text is: The Yale Law Journal
Volume 82, Number 5, April 1978
Economic Regulation vs. Competition:
Uncle Sam the Monopoly Mant
Mark Green* and Ralph Nader**
Despite contrary speeches on the corporate hustings, our free enter-
prise economy has yielded to a mixed economy of public regulation and
private industry.' Yet because public policymakers have not confronted
fundamental questions about its purpose, present economic regulation
lacks both a comprehensive theory and a consistent goal. This brief
comment argues that our unguided regulatory system undermines com-
petition and entrenches monopoly at the public's expense;2 it then
suggests what can be done about it.3
t This article represents a synthesis of many of the findings and arguments of a
number of critics of economic regulation in TnE MONOIOLY MAK:ERS (M. Green ed. 1973)
(forthcoming). Copyright @ 1973, R. Nader.
* B.A., 1967, Cornell University; J.D., 1970, Harvard University; Director, Corporate
Accountability Research Group, Washington, D.C.
** B.A., 1955, Princeton University; LL.B., 1958, Harvard University.
1. For the best discussion of this public-priate econom), see W. ADANIs & H. GRAY.
MoNoPOLY N AS EcmCA: THE GOVERNIENr As PROMOTER (1956) [hereinafter cited as Av.Ws
& GRAY]; W. HAMILTON, THE PoLrrics OF I.NDUsTMY (1957). Approximately twenty to
twenty-five percent of our national income is directly or indirectly controlled by federal
regulation and government enterprise. Caves, Direct Regulation and Market Performance
in the American Economy, 54 A.m. Eco-x. REV. 172 (Supp. May, 1964).
2. This assertion is not new. In 1956, Adams and Gray wrote, Government today is,
in many instances a promoter of monopoly. It frequently puts together the very power
concentrates which the anti-trust authorities are later called upon to break asunder.
ADAMS & GRAY vii.
3. Three preliminary caveats should be noted. First, this comment takes as its operating
framework our traditional economic system of market and regulator, behavior. It does
not prejudge alternate economic modes, existing or theoretical, for allocating economic
resources and rights. Second, the focus is on fcderal economic regulation, such as our
market determinations concerning price and entry, but not health or safet) regulation.
See p. 885 infra. Third, page constraints imposed on this article precluded elaboration
of many points.](ViewImageLocal?handle=hein.journals/ylr82&div=48&collection=journals&method=preview&ext=.png&size=3)
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Economic Regulation vs. Competition: Uncle Sam the Monopoly Man
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