The Economics of Law Firms’ Resistance to Trump, with John Morley

The Economics of Law Firms’ Resistance to Trump, with John Morley

The rule of law is essential to the flourishing of liberal democracy and capitalism. Yet, it is now under pressure in the United States, and corporate law firms are in the eye of the storm. Over the last few weeks, President Donald Trump has issued executive orders against several prominent law firms that represented his political adversaries and promoted diversity, equity, and inclusion (DEI) initiatives. Some of these law firms have caved into the administration’s demands to end such practices and provide pro bono services to the government, whereas others are fighting back.

To discuss the financial reasons why some firms have capitulated while others have held out, and what the consequences are for the survival of the rule of law, Bethany and Luigi speak to John Morley, Augustus E. Lines Professor of Law at Yale University and an expert on the economics of law. Are Trump’s orders unconstitutional, and if so, why have so many law firms reached a deal with him? How have changes to law firms’ business models left them particularly vulnerable to a moment like this? Why are some firms more vulnerable to political attacks than others? Together, the three discuss the firms’ reciprocal agreements with the administration, the possibilities for a collective-action response, and how this moment may profoundly reshape the future of law, democracy, and capitalism in America.

Show Notes:

Watch a recording of the panel “Antitrust and the 1st Amendment” from the 2025 Stigler Center Antitrust and Competition Conference, featuring Greg Day, Eleanor Fox, and Matt Stoller, and moderated by Maciej Bernatt. The panel highlights how antitrust may stand in the way of collective action, competitive markets, and free speech.

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Regulating Facebook and Google Pt 1: Markets

As digital platforms like Facebook and Google become globally powerful, some countries are investigating and even proposing legislation to regulate these companies. Building off a conference happening at the Stigler Center at the University of Chicago, Kate and Luigi speak with Fiona Scott Morton, a Professor of Economics at Yale, to interrogate these platforms from a traditional market structure perspective.

9 Maj 201939min

The Morality or Immorality of A Wealth Tax

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With Democrats like Alexandria Ocasio-Cortez and presidential candidate Elizabeth Warren proposing wealth taxes, Kate and Luigi break down how these taxes have or haven't worked in other countries and whether they could work in America.

25 Apr 201934min

The Ups and Downs of IPOs

The Ups and Downs of IPOs

There’s an acronym you’ve probably heard in the news a lot lately: IPO. With companies like Pinterest, Airbnb and UBER all considering going public this year, Kate and Luigi break down why these companies already have huge valuations, and whether rich people have an unfair advantage when it comes to investing.

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Codetermination: A Seat At The Table

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Is Global Antitrust Off the Rails?

Is Global Antitrust Off the Rails?

In the wake of a blocked merger between the German and French rail giants Siemens and Alstom, Kate & Luigi debate the role of global antitrust regulators. How do they protect consumers while also helping domestic companies compete with state-supported rivals from China?

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14 Feb 201930min

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