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The late emerging consensus among American economists on antitrust laws in the 2nd New Deal (1935-1941)

Author

Listed:
  • Thierry Kirat

    (IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Frédéric Marty

    (CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

The article presents the late convergence process from American economists that led them to support a strong antitrust enforcement in the Second New Deal despite their long-standing distrust toward this legislation. It presents the path from which institutionalist economists, on the one side, and members of the First Chicago School, on the other one, have converged on supporting the President F.D. Roosevelt administration towards reinvigorating antitrust law enforcement as of 1938, putting aside their initial preferences for a regulated competition model or for a classical liberalism. The appointment of Thurman Arnold at the head of the Antitrust Division in 1938 gave the impetus to a vigorous antitrust enforcement. The 1945 Alcoa decision crafted by Judge Hand embodied the results of this convergence: in this perspective, the purpose of antitrust law enforcement does consist in preventing improper uses of economic power.

Suggested Citation

  • Thierry Kirat & Frédéric Marty, 2021. "The late emerging consensus among American economists on antitrust laws in the 2nd New Deal (1935-1941)," Post-Print halshs-03261721, HAL.
    • Handle: RePEc:hal:journl:halshs-03261721
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03261721
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    References listed on IDEAS

    as
    1. Bougette, Patrice & Deschamps, Marc & Marty, Frã‰Dã‰Ric, 2015. "When Economics Met Antitrust: The Second Chicago School and the Economization of Antitrust Law," Enterprise & Society, Cambridge University Press, vol. 16(2), pages 313-353, June.
    2. Miscamble, Wilson D., 1982. "Thurman Arnold Goes to Washington: A Look at Antitrust Policy in the Later New Deal," Business History Review, Cambridge University Press, vol. 56(1), pages 1-15, April.
    3. Nicola Giocoli, 2009. "Competition Versus Property Rights: American Antitrust Law, The Freiburg School, And The Early Years Of European Competition Policy," Journal of Competition Law and Economics, Oxford University Press, vol. 5(4), pages 747-786.
    4. Patrice Bougette & Marc Deschamps & Frédéric Marty, 2015. "When Economics Met Antitrust: The Second Chicago School and the Economization of Antitrust Law," Post-Print halshs-01090048, HAL.
    5. Frédéric Marty & Thierry Kirat, 2018. "Les mutations du néolibéralisme américain quant à l’articulation des libertés économiques et de la démocratie," Revue internationale de droit économique, De Boeck Université, vol. 0(4), pages 471-498.
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    7. Gressley, Gene M., 1964. "Thurman Arnold, Antitrust, and the New Deal," Business History Review, Cambridge University Press, vol. 38(2), pages 214-231, July.
    8. Robert Van Horn & Ross B. Emmett, 2015. "Two trajectories of democratic capitalism in the post-war Chicago school: Frank Knight versus Aaron Director," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(5), pages 1443-1455.
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    Keywords

    Antitrust; Efficiency; Economic Power; Institutional Economics; Chicago School; New Deal;
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