Justice Dept. determined to prove there is a Jabberwock

Submitted by Bill St. Clair on Mon, 28 May 2001 10:03:06 GMT
FROM MOUNTAIN MEDIA
FOR IMMEDIATE RELEASE DATED NOV. 28, 2000
THE LIBERTARIAN, By Vin Suprynowicz
Justice Dept. determined to prove there is a Jabberwock

Decades ago, the Justice Department Anti-Trust Division brought a famously huge and complicated legal action against IBM, contending Big Blue had illegally monopolized the American market in computers.

Of course, it wasn't literally true -- it rarely is. It's practically impossible to create a real "monopoly" without some exclusive grant of power from the government. The problem with the free market (from the point of view of your hypothetical would-be "greedy robber baron") is that as soon as one make or model of product grows popular enough with consumers that the manufacturer is tempted to start hiking prices, new competitors spring up with more innovative technology, offering "better for less."

Protectionists once sternly warned that if the American consumer allowed the Asian nations to "capture" the television-set manufacturing business, they'd use this new-found "monopoly" to jack up prices. But in fact -- while finding an American-made TV today is a quest that could keep Don Quixote busy for a week -- the price of a TV set (even a cable-ready set with numerous other once-undreamed-of features) has fallen by a factor of three or four even in nominal dollars -- far more if inflation is taken into account.

Who would have imagined, when the first huge color consoles entered the wealthiest American homes in the late 1950s, that the day would someday arrive when it was cheaper to throw a TV set away and buy a new one, than to pay a repairman a hundred bucks to take one apart and poke around inside with his soldering iron?

To establish a real "monopoly," some government agency has to authorize the use of armed force to eliminate the protected group's competition (see: "operating a bank without FDIC approval"; "administering safe vitamin B injections in a doctor's office for purposes not sanctified by the FDA"; "practicing law without a license.")

But does the Justice Department look into the cartels managed with the assistance of the FDA, the FDIC, the FSLIC, and the American Bar Association?

A somewhat embarrassing thing happened to the Justice Department on the way to court with its big IBM anti-trust case, all those decades ago. Turns out the geniuses who established the so-called "monopoly on computers in America" had decided there was no future in this "personal computer" thing -- the market for computers was limited to a few thousand big mainframes for banks and insurance firms and the like; no one was ever going to sit at home and goof around with something called a "mouse" ... whatever that was.

Before the Byzantine government lawsuit could drag to its close, based on one monumentally bad decision and under the pressure of free market competition, IBM's vaunted computer "monopoly" slipped away like water through a sieve. The government's anti-trust lawyers quietly closed their briefcases and tiptoed from the room.

What is the likelihood the next administration -- whoever takes the oath of office on Jan. 20 -- will discover itself similarly embarrassed by the ongoing (and now eerily familiar) Microsoft anti-trust case? The Washington-state software giant filed an appeal in federal court Monday, asking for a ruling that federal judge Thomas Penfield Jackson erred in finding that Microsoft established an unfair monopoly when it offered Windows OS users its Internet Explorer software at no extra charge -- and that the firm must thus be broken up under government supervision.

"Revealing a profound misunderstanding of the antitrust laws, the District Court condemned Microsoft's competitive response to the growth of the Internet and Netscape's emergence as a platform competitor, conduct that produced enormous consumer benefits," Microsoft said in its filing.

Oral arguments in the landmark case are set for late February.

If this were a gambling town, someone might just want to establish a pool, giving odds on when the ever-changing market will have shifted enough to require the Anti-Trust gang to again echo the words of the late and lamented Emily Litella:

"Never mind."


Vin Suprynowicz is assistant editorial page editor of the Las Vegas Review-Journal, and editor of Financial Privacy Report (subscribe by calling Niles at 952-895-8757.) His book, "Send in the Waco Killers: Essays on the Freedom Movement, 1993-1998," is available by dialing 1-800-244-2224; or via web site http://www.thespiritof76.com/wacokillers.html.


Vin Suprynowicz, vin@lvrj.com

"When great changes occur in history, when great principles are involved, as a rule the majority are wrong. The minority are right." -- Eugene V. Debs (1855-1926)

"The whole aim of practical politics is to keep the populace alarmed -- and thus clamorous to be led to safety -- by menacing it with an endless series of hobgoblins, all of them imaginary." -- H.L. Mencken

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