Government Consolidation May Not Be a Bad Objective

Proposal would bring anti-trust action under Justice Department

In the May 1 edition of the Washington Post, writers Julian Mark and Will Oremus wrote of a proposal by House Representative Jim Jordan (R-OH) to move anti-trust pursuits solely under the Justice Department. 

Elon Musk has taken a Washington Chainsaw Massacre approach to reducing Federal departments.  I disagree with his premise that there is rampant “waste, fraud and abuse” throughout the Federal bureaucracy.  There may be duplication, turf wars, and actions in isolation of others which can and should be addressed. 

Complementary Goals

Mark and Oremus state that the Federal Trade Commission and Justice Department may have complementary goals: 

“Proponents of Jordan’s proposal say that the dual antitrust roles of the FTC and the Justice Department have led to inefficiencies and turf wars, and that consolidating antitrust under the Justice Department would streamline enforcement. The two agencies, for example, have divided cases taking on large tech companies, with the FTC arguing in court to break up Meta as the Justice Department argues for breaking up Google.”

History

However, there is one major difference.

They state that historically the Federal Trade Commission was created in 1914, “as a result of dissatisfaction over limits the courts had placed on the Sherman Act, which until then had been enforced by the Justice Department.”   They add that the FTC possesses broader powers to go beyond simple anti-trust issues.  Also, the FTC does not have a direct line to the President, like the Justice Department does.  It is targeting this element of independence is why they feel the Republicans are moving in this direction. 

Analysis

I am not opposed to Federal government consolidation if it will tackle duplication, turf wars, or operations in isolation.  Consolidation in the Federal government can be a good thing.  Businesses consolidate locations to streamline operations and bring employees physically closer together.

IMO, in this case it may be better to explore having the anti-trust cases consolidated under the FTC instead of the Justice Department.  If the FTC has greater authority and has a successful track record, why not let them take it on solely? It would even give the potential monopolists an easier time figuring out how to plan their strategy. What do you think?

Author: Robert Wilking

Hello, I have been in the work world since 1980. Some companies I worked for were either independent or locally owned that no longer exist. Over the same time I have read and heard of stories of people who were employees of a company that was once independent, was then acquired by an outside larger firm and the company culture changed. In my opinion, consolidation by national and international firms has contributed to both the income divide in our nation and poor products/services expressed by customers. Local governments and businesses have also suffered as it becomes harder to deal with problems with management located hundreds of miles away or across oceans. My purpose for this blog site is to inform the public about the consequences of such consolidation and to offer solutions to change the situation. I am not a business executive nor government official. I am not registered to a specific political party. I also provide links to articles that I read in order to back up my statements. I also write on other issues that inspire me for a comment. However, the nation’s economy is my main focus. Thank you.

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