It’s the economy, trustbusters.  That’s the message that should be pounded into the brains of Attorney General Janet Reno and Assistant Attorney General Joel Klein as they continue to spend, spend, spend taxpayer dollars during the closing days of the Microsoft trial.

“Proving consumer harm has been the hallmark of successful antitrust actions since the Sherman Act was first enacted more than 100 years ago.  But this case is being brought at the wrong time against the wrong company and in the wrong industry,” said Citizens Against Government Waste (CAGW) President Thomas A. Schatz.  The government insists on spending millions of dollars to persecute companies that have been a prime cause of America's incredible economic growth.

According to the Commerce Department, the information technology industry is helping to keep inflation in check and increase productivity, as well as employing more Americans at above average pay.  At the same time that Vice President Gore said I.T. is “driving the world economy,” his administration is attacking three of the most successful companies in the field – Cisco, Intel, and Microsoft.  “The information technology industry has been characterized by intense competition, improving quality, and energetic innovation and entrepreneurship.  More than one-third of U.S. economic growth between 1995 and 1998 has been due to the digital economy.  Why is the federal government attacking the engine of our success?” Schatz added. 

In addition to these economic factors, Schatz noted, “software is now so cheap, it’s barely worth stealing.”  The Business Software Alliance reported last month that worldwide software piracy has continuously declined since 1994 for many reasons, two of which have particular relevance to the Microsoft case.  First, there is more user support for the software.  Second, BSA notes, a stronger world economy, “combined with a continuing decline in world software prices, has made legal software more affordable.”  CAGW estimates that the Justice Department has already spent at least $30 million to $60 million on this case. Schatz noted that taxpayers and consumers would probably rather spend that money buying more software.

CAGW is a 600,000 member nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.