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.