President Obama recently issued an executive order encouraging federal regulators to promote competition in the marketplace. The order follows a report by the President’s Council of Economic Advisors illustrating the ways that competition between firms benefits consumers and how collusion/cooperation between businesses to manipulate prices harms consumers. When companies collude, prices rise, quality falls and businesses are protected from the consequences of their poor service.
The executive order instructs federal agencies to eliminate “regulations that restrict competition without corresponding benefits to the American public.” The president and his advisers should be lauded for recognizing that sometimes government policy does more harm than good by playing favorites.
Continue reading: Corporate Pork, It’s What’s for Dinner