Prominent economist and blogger Noah Smith has publicly urged "antitrust progressives" to target "monopoly utility companies," signaling a potential expansion of the progressive antitrust movement's focus beyond the tech sector. The call, made via a recent tweet, aligns with Smith's long-standing advocacy for stronger antitrust enforcement to address corporate power.
"The antitrust progressives should go after monopoly utility companies!!" Noah Smith stated in his social media post.
Smith, known for his "Noahpinion" blog and his contributions to economic discourse, is a vocal proponent of the Neo-Brandeisian antitrust philosophy. This approach emphasizes concerns about excessive corporate power, market concentration, and their impact on political influence and economic fairness, moving beyond a sole focus on consumer welfare. His previous writings have often highlighted the need to address concentrated power across various industries.
Utility companies, such as electricity, water, and gas providers, are typically considered "natural monopolies" due to the immense infrastructure costs and efficiencies gained from a single provider. Historically, these entities have been subject to public utility regulation by state and federal bodies, which oversee rates and service quality, rather than traditional antitrust enforcement that promotes competition. This regulatory framework often exempts them from standard antitrust laws.
However, the progressive antitrust movement argues for a broader application of antitrust principles, contending that unchecked corporate bigness can harm the economy and society even in regulated sectors. Advocates suggest that while utilities are regulated, they can still exert undue influence, stifle innovation, or operate inefficiently without sufficient competitive pressure or robust regulatory oversight. This perspective echoes historical Progressive Era efforts that applied public utility-style regulations and antitrust measures to dominant infrastructure industries like railroads and telegraph companies.
The debate over whether antitrust tools or enhanced regulation are the most effective means to address power within the utility sector continues among policymakers and economists. Smith's tweet suggests a desire to apply the aggressive anti-monopoly stance seen against tech giants to other foundational industries, potentially reshaping discussions around the future of utility oversight.