The premise of the discussion here is wrong, which is, after all, a common problem with discussions of public policy. “Trade is zero sum.”  Wrong. “People do not respond to incentives.”  Wrong.  “Socialism had nothing to do with the collapse of the Venezuelan economy.” Wrong. Or in the present case, “When a company such as Facebook or Google has suddenly grown, it must be a dangerous monopoly and needs to be regulated by wise heads in Whitehall.” Wrong.

Sure, in the short run we are all terrified that the big shoe company will sell us only its own shoes, or that Cadbury under Kraft will change the formula for Whole Nut, or that in other ways “the corporations” such as Google will upset our lives. 

There are two things wrong with such a premise. For one thing, it is not at all obvious, in the case of the computer giants no less than in the case of New Balance or Cadbury, that the government can do better.  Suppose the Monopolies Commission or the Anti-Trust Division of the Department of Justice intervenes.  What makes us think that the interventions will be efficacious? It is wrong, of course, to believe that government agencies always get things right.  Sometimes they do. But often enough not.  Let’s see: cladding on high rises?  With the best will, they too make mistakes.