Freakonomics Radio 625. The Biden Policy That Trump Hasn’t Touched
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Mar 7, 2025 
Lina Khan, the youngest chair of the Federal Trade Commission, revolutionized U.S. antitrust policy by challenging monopolistic giants like Amazon. She shares insights on the FTC's strategies against corporate power and the complexities of regulatory frameworks. Khan discusses the often-overlooked implications of non-compete clauses on workers and reflects on her childhood influences that shaped her commitment to antitrust reform. She emphasizes the need for equitable practices in labor markets while navigating the challenges of public leadership in an era of increased market consolidation.
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Consolidation Across Industries
- Lina Khan researched consolidation in various sectors like book publishing, airlines, and commodities.
- She discovered a pattern of reduced competition leading to higher consumer prices and lower farmer earnings.
Historical Context of Antitrust
- Historical context shapes antitrust policy, exemplified by the Sherman Act's response to railroad monopolies during the Industrial Revolution.
- The Chicago School's influence in the 70s and 80s led to a hands-off approach, assuming markets would self-correct.
The Chicago School's Impact and its Rebuttal
- The Chicago School's hands-off approach to antitrust, influenced by figures like Robert Bork and Richard Posner, assumed markets would self-correct and that monopolies were rare.
- This theory, prevalent from the 70s through the Obama administration, has been challenged by empirical evidence showing persistent market power and its negative consequences.