Message From An Activist Court

Here

So, the court decided to over-turn an anti-trust law that prevented manufacturers from setting the minimum prices on things. That's why it's always 'suggested retail price.' This directly affects competition in the form of discounts and could easily lead to legal price-fixing.

Now, I know this isn't as 'fun' to discuss as abortion or civil rights, but this is the result of conservatism on the bench. These activist judges enforced their world view when they overturned 96 years of precedent.

Here's what Justice Breyer* said in his dissent:

“The only safe predictions to make about today’s decision are that it will likely raise the price of goods at retail and that it will create considerable legal turbulence as lower courts seek to develop workable principles,” he wrote. “I do not believe that the majority has shown new or changed conditions sufficient to warrant overruling a decision of such long standing.”

Not only will it likely negatively affect competition, the basis of the free market, but it is over-turned willy-nilly.**

The main argument in favor of this ruling:

For example, they said, such agreements can make it easier for a new producer by assuring retailers that they will be able to recoup their investments in helping to market the product. And they said some distributors could be unfairly harmed by others — like Internet-based retailers — that could offer discounts because they would not be incurring the expenses of providing product demonstrations and other specialized consumer services.

I'll start with the end first. They are coming after your fancy internet! Beware! As far as the first is concerned, this is a possibility, but let me present another, just as fetched as this one. Dio, Corp*** have been making Dio's for 50 years**** and have many agreements with many large chains where they've agreed to sell each Dio for $5. In comes Little Guy, llc. A couple of guys that come up with a brilliant innovation to improve Dio*****, and with the $5 price point the market (artificially) dictates, they'll be able to invest heavily and recoup expenses. Thus, according to the decision, more competition. However, as Dio, Corp sees Little Guy, llc gearing up, they get the agreements to set the minimum price at $4.75, not too big a hit to them, but just enough to prevent Little Guy, llc from ever getting a foothold and preventing consumers from getting improved product. See, everyone wins!

No they don't.

And, far worse scenarios can be imagined.

When did the government completely give up on the idea that it should protect people and not corporations?

*And ice cream entrepenaur.
**This word I like.
***I had to work Dio in somehow.
****But, now they make them in China, of course.
*****I don't see how, really.