4 ms·

Yeah...I agree. However, I'd prefer more competition between oligopolistic telcos.

maxharris 18y ago
One of the primary illegitimate means of preserving oligopoly and other states that economists characterize as "market failure" is regulation. For small-time examples, see the crooked politics and business licensing laws of Louisiana. For larger ones, look carefully at FDR's 1933 National Industrial Recovery Act, which, among other things, actually legalized cartels. Although the act was declared unconstitutional in 1935, both government and business were further corrupted thereafter. But not all cases of monopoly or oligopoly should be considered harmful - businesses that win such positions by the strength of outstanding execution or innovation (Alcoa in the 20th century, for instance) should be left alone. What I advocate is removing the government crutch that keeps some businesses in unnaturally advantageous situations. Think of things like the farm bill, or the FDA.
- deleted 18y ago
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- asdflkj 18y ago
  What about business who have won their monopoly not by the strength of outstanding execution and innovation? Should they be left alone? Are you saying that all anti-monopoly/oligopoly regulation is bad? If so, you need more to back this up than a couple of examples of bad regulation. And if not, then you can't defend the telcos on general principle. You should explain what makes them the "good" kind of monopoly.
  - maxharris 18y ago
    Only two categories of monopoly exist - businesses that use the government to maintain their position, and businesses that earn their position. Examples: * AT&T enjoyed a monopoly provided by the government; Alcoa did not. * Aesthetic questions of instruction set aside, Intel is similar to Alcoa in that they earned their spot through execution (and knowing what's important; it's only obvious in hindsight that having the newest and biggest fabs anywhere trumps design in this industry.) * Apple with iPod+iTunes. (Good) * Google with Gmail. (Good) * The United States Postal Service (Bad) * Rail service through government-run Amtrak (Bad)

One of the primary illegitimate means of preserving oligopoly and other states that economists characterize as "market failure" is regulation. For small-time examples, see the crooked politics and business licensing laws of Louisiana. For larger ones, look carefully at FDR's 1933 National Industrial Recovery Act, which, among other things, actually legalized cartels. Although the act was declared unconstitutional in 1935, both government and business were further corrupted thereafter. But not all cases of monopoly or oligopoly should be considered harmful - businesses that win such positions by the strength of outstanding execution or innovation (Alcoa in the 20th century, for instance) should be left alone. What I advocate is removing the government crutch that keeps some businesses in unnaturally advantageous situations. Think of things like the farm bill, or the FDA.

deleted 18y ago
[deleted]
asdflkj 18y ago
What about business who have won their monopoly not by the strength of outstanding execution and innovation? Should they be left alone? Are you saying that all anti-monopoly/oligopoly regulation is bad? If so, you need more to back this up than a couple of examples of bad regulation. And if not, then you can't defend the telcos on general principle. You should explain what makes them the "good" kind of monopoly.
- maxharris 18y ago
  Only two categories of monopoly exist - businesses that use the government to maintain their position, and businesses that earn their position. Examples: * AT&T enjoyed a monopoly provided by the government; Alcoa did not. * Aesthetic questions of instruction set aside, Intel is similar to Alcoa in that they earned their spot through execution (and knowing what's important; it's only obvious in hindsight that having the newest and biggest fabs anywhere trumps design in this industry.) * Apple with iPod+iTunes. (Good) * Google with Gmail. (Good) * The United States Postal Service (Bad) * Rail service through government-run Amtrak (Bad)