This week's favorable Justice Department decision on the AT&T/BellSouth merger again contrasts the European and American approaches toward business affairs.

It also demonstrates why elections matter.

At issue before the Justice Department's Antitrust Division was the proposed $78.5 billion merger between AT&T and BellSouth. The logic behind the agreement is simple: combining their resources creates a provider large enough to more effectively and efficiently expand wireless, broadband, video, voice and data services to the public. It will also promote fuller integration of wireless and wireline networks, thereby resulting in a more nimble and innovative menu of benefits.

As a result, the new company can deliver new and superior services for consumers and businesses, and propel the industry's shift to Internet Protocol network-based technologies.

Despite the predictable chorus of anti-business naysayers, the social and economic benefits will be numerous. AT&T will now possess the scale to invest billions of dollars into expanding America's broadband infrastructure, which currently ranks an embarrassing 19^th in the world.

For consumers, the merger will create an alternative to the cable monopolies that stifle innovation due to lack of competition. Consumers will also see faster deployment of advanced IP television networks and expansion of DSL Internet service, where cable monopolies currently dominate. Further, AT&T's IPTV advances and research laboratories will couple with BellSouth's extensive fiber network deployment for DSL and other broadband services.

Did we mention that it will bring lower prices to consumers as well?

Businesses also stand to benefit from the joinder of AT&T's national and international networks with BellSouth's local exchange and broadband distribution and expertise.

Finally, everyday investors will benefit because the merger will strengthen the company's growth profile, especially driven by wireless technology, which will represent one-third of the new company's expected revenues. Further, the new company's revenues will create the flexibility to reduce debt levels while providing resources for innovation and expansion, as well as greater dividends for stockholders. Indeed, since the March 2006 merger announcement alone, BellSouth's stock has increased by 40%, or $20 billion, because investors recognize the benefits.

Naturally, left-wing activists oppose the merger with their typical hyperbole and histrionics. For example, Mark Cooper, Director of Consumer Research for the ill-named Consumer Federation of America, literally proclaimed that the merger "gives AT&T more ability to kill the Internet." We're not making this up.

Cable monopolies also oppose the merger, precisely because they fear an innovative newcomer disrupting their cozy arrangement. Understandably, they're unhappy that DSL and wireless costs have declined following the SBC/AT&T and Verizon/MCI mergers last year, according to the FCC. But bad news for cable monopolies is good news for the rest of us.

In sum, the merger is a win for consumers, businesses and investors, and a loss only to cable monopolies and anti-business activists.

Importantly, the merger also reconfirms the differences between the American and European business approaches. In America, we thankfully favor free-market innovation and maneuverability as a general rule, allowing market forces to flourish for the benefit of consumers and citizens.

In contrast, Europe continues down its path of overregulation and anti-business animosity. This is illustrated so clearly by the European Union's vendetta against innovative American companies such as Microsoft, General Electric, and others.

Recall, for instance, the EU's refusal to allow the Honeywell/General Electric merger, and its constant harassment of Microsoft. Recall also some European nations' insistence that Apple surrender its intellectual property to inferior competitors who can't win market share, opting instead to target Apple through bureaucratic legislation and the courts.

Ultimately, it is European consumers who suffer the consequences, as demonstrated by Microsoft's reluctant decision to downscale its new Windows Vista product in Europe. American consumers, in contrast, will benefit from the greater array of Microsoft innovations when Windows Vista arrives here, and we enjoy our Apple iPods just as they are, thank you very much.

So how does this relate to elections? Well, the AT&T/BellSouth merger must now be approved by the Federal Communications Commission. Although FCC Chairman Kevin Martin favors the merger, the other members, including two Democratic commissioners, may balk. The fact that the FCC commissioners are political appointments again illustrates the critical importance of electing pro-business politicians, who in turn appoint and confirm pro-business and pro-growth commissioners such as those at the FCC.

Otherwise, anti-business liberals will increasingly stifle innovation and increase bureaucratic red tape and hostility. Something to keep in mind if you're considering sitting out this election.