I will add this: the number of ways in which humans can harm one another is immeasurable, and every law comes with an associated cost. At the bare minimum the cost is enforcement plus the harm imposed by occasional false accusations and convictions. But bad laws can also dampen legitimate economic activity, making social problems worse.
As a society plunges into dysfunction due to economic stress, the number of people harming one another increases. If the society responds using more laws, and fails to correct the source of the dysfunction, it will eventually collapse under the weight of those laws as enforcement becomes uneven and politically driven. (This is the failure mode of legalist and bureaucratic states.) Alternatively, if the society responds with a more arbitrary case-by-case system of punishment, it will collapse into mob rule or dictatorship, so lack of structured law isn’t a solution either.
The only real solution is to fix the root problems facing the society. Antitrust helps with this because it can “unstick” parasitic incumbents who are preventing the market from dynamically responding to real economic conditions.
> At the bare minimum the cost is enforcement plus the harm imposed by occasional false accusations and convictions.
Don't forget compliance costs. Those are some of the largest costs and they're largely hidden because they don't go into the government budget. You pass a law to prevent a million dollars in total harm and then a hundred thousand companies each spend $100 to comply with it, what did you get and what did you pay?
Compliance costs also have a specific type of cost because of their asymmetry. It's like adding a fixed amount of weight to a boat. If you add 1000 pounds of regulatory costs to a 200,000 ton container ship, it doesn't even notice. If you add the same amount of weight to a kayak, it sinks. But if you keep adding costs until you sink all the small boats, and then sink all the medium boats, you're not just failing to solve all the problems caused by market consolidation, you're actively making them worse.
As a society plunges into dysfunction due to economic stress, the number of people harming one another increases. If the society responds using more laws, and fails to correct the source of the dysfunction, it will eventually collapse under the weight of those laws as enforcement becomes uneven and politically driven. (This is the failure mode of legalist and bureaucratic states.) Alternatively, if the society responds with a more arbitrary case-by-case system of punishment, it will collapse into mob rule or dictatorship, so lack of structured law isn’t a solution either.
The only real solution is to fix the root problems facing the society. Antitrust helps with this because it can “unstick” parasitic incumbents who are preventing the market from dynamically responding to real economic conditions.