Aha - we just discovered Wednesday how the Obama Administration plans to stimulate the economy, by using the Department of Justice to block mergers and the resulting consolidation of assets and inevitable layoffs.
Not that there is anything wrong with that (trust busting). The lawsuit against AT&T to block the T-Mobile acquisition would forestall or prevent the elimination of 34,000 to 60,000 jobs due to the restructuring that would have taken place.
This is stimulus in two ways, preventing layoffs and encouraging companies to build rather than buy assets. It will effectively force some money out of the clutches of cash-rich companies into either much smaller acquisitions or internal hiring and "organic growth".
If I'm right about this being a "hidden stimulus" measure, you can expect more of these kinds of lawsuits. It's the kind of big-government idea that Democrats love, pro-consumer and all that. Of course it will slow productivity growth and ultimately result in more inflation, but the principle of the Federal government enforcing anti-trust policies is not inherently unconsitutional, like so many other things this administration is attempting to do.
In the meantime it will keep lots of lawyers employed (oh joy). That's another thing Democrats love to do. Anyway, you gotta hate these phone company monopolies; they're almost as arrogant as government bureaucrats. Keep them competing, that's fine with me.
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