Archive for the ‘telecoms’ Tag

Crony Capitalism & the Internet   Leave a comment

Were you happy with your doctor and did you get to keep him? Were you happy with your insurance policy and do you still have it? Have your premiums gone down … or up?

Yeah … the ACA is a cautionary tale of what happens when large corporations and government get into bed with one another. The ACA was written by large medical corporations behind closed doors in collusion with our elected representatives and, with a few notable exceptions, it has largely been a disaster.

So now we have Net Neutrality. Do we think it wasn’t written in a way that will make it harder for new companies to offer Internet service?

If I wasn’t a broke novelist taking informed pot shots from the cheap seats, I’d bet money that the telecoms now have an effective tool against smaller, more efficient competitors and that consumers will have few options for Internet service.

Oh, but you believe the politicians who say that if they hadn’t stepped in things would be much worse?

In a truly free market, telecoms like Comcast and Time Warner would have to adjust their practices or go out of business. They’d be replaced by options that would give us better service at lower prices. Some of the new options would depend on taking advantage of the freedom to charge more for certain types of Internet … which is exactly what Net Neutrality seeks to eliminate.

Barriers to competition tend to work in the favor of large corporations which can more easily afford to forego profits in the short term in order to profit in the long term. This sort of predatory capitalism blocks the smaller companies out of the market and leaves the field wide open for the larger companies that helped to write the regulations in the first place.

 

But hey, don’t take my word for it. Go research it for yourself.

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