Earlier this week, the Taxpayers Protection Alliance Foundation (TPAF) launched a new project to monitor the Federal Trade Commission (FTC) called, FTC Mission Creep ([link removed]) . As part of ongoing work by TPAF, FTC Mission Creep reports on the FTC’s continuing legal and economic overreaches. Since President Joe Biden took office, the FTC has increasingly become a menace to the American economy, initiating many frivolous cases against productive American firms. This initiative will also document the recent disfunction that has pervaded the agency, including questionable ethics decisions, attempts to thwart congressional oversight, and widespread staff dissatisfaction.

Profile in Courage - Isaac “Yitzy” Schleifer

In struggling cities such as Baltimore, Md., city council members will often accept the status-quo and not fight for a better future. Charm City has seen more than its fair share of crime, urban blight, littering, and unresponsive public services, yet few public officials are willing to hold the city government accountable. City Councilman Isaac “Yitzy” Schleifer has proven to be a welcome exception, leading the charge for a more transparent city government that caters to its residents instead of kowtowing to pols with undue clout. Change hasn’t been easy, and publicly calling attention to Baltimore’s woes is a surefire way to attract haters. But, Councilman Schleifer continues to fight the good fight and hold special interests at (old) bay. For being a lone voice of reason in an often-unreasonable city government, Yitzy Schleifer is most definitely a Profile in Courage. Councilman Schleifer’s exemplary work ethic and entrepreneurial spirit has been a boon to his community and Baltimore at
large. The local lawmaker earned his college degree from the University of Baltimore Merrick School of Business, while simultaneously founding and running a software company called Raffle Ready. This innovative start-up has helped non-profits automate their online fundraising, replacing largely paper-driven operations with a streamlined digital interface. Because of his success with Raffle Ready, Schleifer was the first-place winner of the University of Baltimore’s first Startup Maryland Business Pitch Competition. While Schleifer could easily have stayed in the start-up sector and founded new brands, the future councilman decided to use his talents to improve the beleaguered city government. Baltimore has long been plagued with one of the most corrupt city governments in the country, with multiple mayors and government officials serving prison time for various misdeeds. Schleifer has made it his mission to improve the relationship between Baltimoreans and their government. He first served
as a liaison to Northwest Baltimore for former Baltimore City State’s Attorney Gregg Bernstein, taking time to hear the concerns of residents and securing criminal convictions for violent offenders.

After being elected City Councilman for Baltimore’s 5th District, Schleifer immediately got to work improving the lives of his constituents. Despite residents paying a 3.2 percent local income tax and 2.2 percent property tax, the Department of Public Works (DPW) couldn’t be bothered to provide regular city services. Recycling goes uncollected, and, as Councilman Schleifer explains, “DPW could NOT answer simple questions about the missed collections nor give us a plan to resume weekly recycling collections.” In 2022, Schleifer grilled DPW Director Jason Mitchell in a public hearing, noting, “Just like residents if they fail to abide by the similar laws where they have to contain their recycling in a certain manner, they’re fined. So too the director should be fined.” The Councilman wanted to fine Mitchell $1,000 per day until weekly recycling was restored. While this policy never came to pass, Mitchell felt the pressure and resigned his position in 2023. Hopefully, new leadership will mean
better, more reliable recycling services for the people of Baltimore. Councilman Schleifer has also tirelessly worked to make his city a safer place for residents and city workers. Following the tragic mass shooting at a Brooklyn Day block party on July 2, Councilmembers Yitzy Schleifer and Eric Costello questioned interim Mayor’s Office of Neighborhood Safety and Engagement (MONSE) Director Stefanie Mavronis about policies in place to protect city workers and program staff from wanton acts of violence. MONSE is responsible for the “Safe Streets” gun violence reduction program, and could have had better protocols in place to protect the four Safe Streets workers who were at the block party. In response to this line of questioning, former MONSE Director Shantay Jackson penned an op-ed baselessly insinuating that Schleifer and Costello were racist for demanding accountability. Jackson wrote, “The two white councilmembers misconstrued the efficacy and role of community violence intervention
work being done in some of the city’s Black communities.” Meanwhile, city workers remain unprotected and crime in Charm City continues to soar to new heights. Despite these bogus charges, Schleifer continues to fight for accountability and demand justice. Schleifer has also proven a powerful advocate for federal taxpayers. The lawmaker asked pointed questions to Shamiah Kerney (Director, Office of Recovery) about the oversight of $641 million in federal funds being spent in Baltimore as part of American Rescue Plan Act funding.

For continuing to lead the charge for a better city amid outrageous smears and fiscal mismanagement, Councilman “Yitzy” Schleifer is a Profile in Courage.

Summer Reading – Antitrust
Every now and again, beachgoers hoping to wade into the water encounter the dreaded lifeguard who takes his or her job just a little too seriously. Sudden approaches toward the buoy earn a long, high-pitched whistle, while any “roughhousing” is sure to merit a rebuke from the tall, white chair. The overzealous lifeguard has even been known to interfere in the occasional volleyball match, baselessly alleging unfair competition and collusion between the teams. While vacationers might laugh at their solemn protectors, their overzealous counterparts at federal antitrust agencies leave higher costs and lost jobs in their wake. These officials interpret any ripple in the vast sea of competition as an imminent shark attack and waste countless taxpayer resources attempting to “rescue” consumers looking for better deals, entrepreneurs looking for investors, and businesses looking to better serve their customers. So, strap on your life vest and lather that sunscreen on your nose as TPA takes a deep
dive into the murky waters of antitrust law.

As consumers and taxpayers unfortunately know too well, federal agencies use vague, sweeping laws to grow and concentrate their power. Antitrust agencies such as the Federal Trade Commission (FTC) and Department of Justice (DOJ) mainly ground their authority in the 1890 Sherman Antitrust Act and the Clayton Act of 1914. These statutes cover, well… anything a lawyer or bureaucrat wants it to cover. The nineteenth century language of the Sherman Act casts quite a broad net: “Every contract, combination in the form of trust or other- wise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal... Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a misdemeanor, and, on conviction thereof.” The Clayton Act is similarly broad.
Section 7 of the Clayton Act prohibits any merger or acquisition that “may be substantially to lessen competition, or to tend to create a monopoly.” But as Pepperdine University Economics Professor Gary M. Galles writes, “[H]ow much is ‘substantially’ and what determines it? How likely does ‘may’ have to be? How much of an increase in concentration counts as a ‘tendency’ to monopoly? The problem, then, is that Clayton Section 7’s incredible vagueness leaves its meaning to the eyes of the beholder regulators and courts, who can twist it into any conclusion desired.” In the heyday of antitrust enforcement, officials at the FTC and DOJ interpreted these provisions broadly to attack a wide array of mergers and acquisitions, even if these business moves increased efficiency and were good for consumers. In a testament to the government’s wide latitude to pursue cases under antitrust law, Supreme Court Justice Potter Stewart once famously dissented, “The sole consistency that I can find is
that… ’the Government always wins.’”

Populism began to override proven economic principles under the Trump and Biden administrations. President Trump repeatedly railed against big tech companies such as Facebook, Twitter, and Google, accusing them of “doing a horrible thing for our country and to our country” by allegedly suppressing conservative voices and hammering down on any competition. In 2020, President Trump’s DOJ brought suit against Google, accusing the company of anti-competitive tactics to maintain an upper hand in online search and search advertising. As American Action Forum’s former director of technology and innovation policy Jennifer Huddleston noted at the time, “The DoJ’s decision to file a case against Google signals that technology companies are under increasing scrutiny from both the left and the right... The decision to file an antitrust case and the increasing scrutiny of tech companies from both sides of aisle may have impacts beyond just Google. The result may be that larger companies are more
hesitant to engage in acquisitions or explore certain expansions for fear it may draw the attention of regulators and result in antitrust enforcement action.” And, once Trump signaled his willingness to weaponize antitrust, it was all-too easy for his successor to follow suit. After assuming office in 2021, President Biden appointed antitrust uber-hawk Lina Khan to helm the FTC. Khan had shockingly little experience in antitrust law, but quickly rose to fame after writing a viral paper called “Amazon’s Antitrust Paradox” in which the young scholar accused Amazon of ruthlessly driving competitors out of the market.

In a 2023 recap of Khan’s tenure, Axios reporter Ashley Gold notes, “Khan's FTC is pursuing a proposed ban of employers' noncompete agreements and another rule that would keep companies from selling and sharing consumer data, looking to end ‘commercial surveillance.’” She’s also been eager to take companies such as Meta and Microsoft to court over allegedly harmful acquisitions, even though courts have handed her loss after loss. Khan keeps trying to expand government antitrust authority, and in collaboration with the DOJ, the FTC recently released strict new guidelines for dealing with vertical mergers. It remains to be seen whether the lifeguards at the FTC and DOJ will dive into this deluge of dubious precedent. No matter what happens, TPA is here to help taxpayers and consumers fight back against the rising tide of government intervention.


BLOGS:



** Monday: Profile in Courage: Isaac “Yitzy” Schleifer ([link removed])
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** Tuesday: Taxpayers Protection Alliance Foundation Announces Launch of FTC Mission Creep ([link removed])
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** Wednesday: Policy Briefing: Roadworthiness and Taxpayer Costs ([link removed])
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** Thursday: TPA’s Latest 50 State Analysis Examines Adult and Youth E-Cigarette Use ([link removed])

Friday: Summer Reading: Antitrust ([link removed])
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Media:

July 27, 2023: The Lootpress mentioned TPA in an op-ed titled, “Don’t empower an unpopular IRS.”

July 27, 2023: Regulator Watch mentioned TPA in their article, “Make no mistake, the minions of global public health are coming for your vapes.”

July 31, 2023: WBFF Fox45 (Baltimore, Md.) interviewed me about congressional salaries.

July 31, 2023: The Washington Examiner (Washington, D.C.) ran TPA’s op-ed, “Biden wants 100% clean energy by 2035. It won’t work.”

July 31, 2023: Filter ran TPA’s op-ed, “Stigma and Misinformation Maintain the Devastating Toll of Lung Cancer.”

July 31, 2023: WBFF Fox45 (Baltimore, Md.) interviewed me about congressional salaries.

July 31, 2023: Townhall.com ([link removed]) ran TPA’s op-ed, “Lina Khan Keeps Dodging Congressional Oversight to Effect Her Radical Agenda.”

August 1, 2023: I appeared on KRC 550 AM (Cincinnati, Ohio) to talk about pharmacy benefit managers and streetcars.

August 1, 2023: WBFF Fox45 (Baltimore, Md.) quoted TPA in a story about Baltimore City Council travel.

August 3, 2023: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about the latest credit downgrade and government spending.

August 3, 2023: WBFF Fox45 (Baltimore, Md.) interviewed me about Baltimore City Schools suing social media companies.

August 3, 2023: The Hill ran TPA’s op-ed, “Congress must close this Fourth Amendment loophole.”

August 3. 2023: Filter ran TPA’s op-ed, “The WHO’s COP10 Takedown of Tobacco Harm Reduction Takes Shape.”

Have a great weekend!

Best,
David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 1120
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])

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