Market Correction

2 June 2009

Editor, The Wall Street Journal
200 Liberty Street
New York, NY 10281

To the Editor:

George Priest argues that it's a mistake for the Obama administration to change antitrust policy from one that, at least allegedly, is focused on protecting competition to one focused on restricting large and successful - "dominant" - entities from competing vigorously with less-successful rivals ("The Justice Department's Antitrust Bomb," June 2). Mr. Priest is right: this policy will help only weaker rivals as it harms consumers.

But if the administration insists on resurrecting this old-fashioned (and intellectually debunked) policy, it should do so consistently. It can begin by blocking the Democratic Party from taking advantage of its current dominance over its much-weaker rivals. Given Mr. Obama's apparent understanding of the competitive process, he must know that the G.O.P. and other minor parties can compete against the Democrats only if government prevents the Democrats from exploiting their current market dominance.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University