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It's a feedback loop that started because of government intervention in the free market and it continues simply because of government intervention in the free m

by talmand 10y ago

It's a feedback loop that started because of government intervention in the free market and it continues simply because of government intervention in the free market. There are many examples of this, such as your broadband and mobile phone markets, and university tuition loans.

iainmerrick 10y ago
Well, hang on now, wouldn't you agree that the free market has sometimes left us stuck with cartels and monopolies? (In the US, look at the railroads and telephone network.) Sometimes you need regulations to break out of those traps.
- jessaustin 10y ago
  The telephone network hasn't had anything to do with a free market since 1934 at the latest. The Justice Department chose a monopolist winner in 1913. The USA freight rail system exhibited some monopoly through the 1880s, but since has been quite regulated. Perhaps the current level of regulation may not be ideal, but since the USA freight rail system is the best in the world it would seem foolish to tamper with it.
  - iainmerrick 10y ago
    I think we're agreeing? I didn't mean those are monopolies now, I meant that they had wandered into monopoly territory in the past, and regulation has been somewhat (not entirely) successful in fixing that.
    - jessaustin 10y ago
      I guess we agree about the railroads. However, telecom has never been a natural monopoly, and the USA government has had to work hard for a century to make and keep it one (...and to convince the public that telecom monopoly is unavoidable.) VZN and ATT may not have merged officially yet, but they certainly act in concert to maintain their duopoly position. This will only change when the FCC ceases to stifle modern radio technology.
- talmand 10y ago
  Yes, there are examples of the free market creating monopolies. This is even more possible today than years past. But in those examples I'm willing to bet the only way they are maintained is from the assistance of government. Sometimes it is good thing, I admit, but in most cases it is not consumer friendly.

by talmand 10y ago

iainmerrick 10y ago

Well, hang on now, wouldn't you agree that the free market has sometimes left us stuck with cartels and monopolies? (In the US, look at the railroads and telephone network.) Sometimes you need regulations to break out of those traps.

jessaustin 10y ago
The telephone network hasn't had anything to do with a free market since 1934 at the latest. The Justice Department chose a monopolist winner in 1913. The USA freight rail system exhibited some monopoly through the 1880s, but since has been quite regulated. Perhaps the current level of regulation may not be ideal, but since the USA freight rail system is the best in the world it would seem foolish to tamper with it.
- iainmerrick 10y ago
  I think we're agreeing? I didn't mean those are monopolies now, I meant that they had wandered into monopoly territory in the past, and regulation has been somewhat (not entirely) successful in fixing that.
  - jessaustin 10y ago
    I guess we agree about the railroads. However, telecom has never been a natural monopoly, and the USA government has had to work hard for a century to make and keep it one (...and to convince the public that telecom monopoly is unavoidable.) VZN and ATT may not have merged officially yet, but they certainly act in concert to maintain their duopoly position. This will only change when the FCC ceases to stifle modern radio technology.
talmand 10y ago
Yes, there are examples of the free market creating monopolies. This is even more possible today than years past. But in those examples I'm willing to bet the only way they are maintained is from the assistance of government. Sometimes it is good thing, I admit, but in most cases it is not consumer friendly.