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I didn't feel insulted but you said that someone else must be off their rocker to believe something you think is wrong which is completely unnecessary. I don't
by josephlord 13y ago
I didn't feel insulted but you said that someone else must be off their rocker to believe something you think is wrong which is completely unnecessary.
I don't disagree that government can make things worse or even that they may be the main problem in Baltimore and many areas. However I also believe that there can often be problems in unregulated infrastructure markets and also that government can help.
Almost everyone in the UK has a choice of ADSL providers (and most now have the option of VDSL/FTTC from many providers at higher prices). It isn't perfect but the situation could be much worse. This is enabled by the regulation of the wholesale prices of BT Openreach, the arm of the former telephone monopoly company responsible for the lines. I offer this as an example of government enabling competition and a much better scenario than if the incumbent infrastructure owner could charge monopoly rents and only face competition in the highest density most lucrative areas at the cost of significant disruption as more companies dig up the roads.
Bad government is bad and there are places even good government doesn't help much but that doesn't mean that government always makes things worse and less competitive.
Don't forget that even in pure economic theory there are two "efficient" outcomes, perfect competition where the consumers obtain the entire surplus value and monopoly where the monopolist obtains the surplus.
- praxeologist 13y agoI don't think price fixing qualifies as enabling competition. You mention a choice of providers, versus I guess previously only having the choice of BT's monopoly? So, government already creates this telecom monopoly then breaks it up a bit, uh no that doesn't work at all sorry. Absent regulation, I have all the choice in the world.
- josephlord 13y agoI think if a company wanted to compete with BT Openreach they can it is just impractical in most scenarios. There is also a cable company with its own infrastructure covering about half the country but they aren't interested in increasing coverage. Because the local loop is regulated you can then have competition at the level above that with different pricing and service offers, so you can choose BT or at very similar price a number of others or for a little more really good ones offering IPv6 and good support (within the limits of the Openreach managed lines). Is it perfect - definitely not but it is a hell of a lot better than the situation in much of the states and I believe than pure unregulated market in this sector.