I think the original AT&T monopoly was good public policy, bringing near universal phone service to the country which greatly enhanced our collective economic well being. And there are certainly examples of bad monopolies created by government.
There's also no question that monopolies can arise absent government involvement, and it's the fundamental nature of capitalism that companies will try to increase their pricing power by eliminating the competition, often by acquiring them.
It's also indesputable that every economic theory includes some level of governmental regulation to protect competition.
Some, like the Austrians, have a very light touch but even Hayek didn't believe in complete laissez faire.
The larger point is that in the real world monopolies occur regardless of how they came about and where they do exist government has a legitimate role in regulating them.
“It’s also indesputable that every economic theory includes some level of governmental regulation to protect competition.
The larger point is that in the real world monopolies occur regardless of how they came about and where they do exist government has a legitimate role in regulating them.”
Well you closed that circle up nicely. The government is supposed to protect competition except when it is creating or regulating monopolies.