November 26, 2007
With Republican's Like These...
That should probably be a category -- or a whole new blog: with Republicans like these, who needs Democrats?
I wrote about Michael Powell in May of 2003:
Chairman Powell is Colin Powell’s son. As much as I respect Dad, Michael’s policy and beliefs comport better with mine, and he clearly is the better for spending fewer years with the striped-pants crowd at the State Department. He is pushing to bring FCC Regulations into the 21st Century. Regulations on ownership that were crafted when America got its news from Eric Sevareid can be relaxed now that many get news from Andrew Sullivan. Chairman Powell understands the effect of cable TV and Internet information sources and he believes in the free market enough to fight for a more modern approach.
Come home, Michael, we need you. Today, the WSJ Ed Page takes
a few whacks at his successor, Kevin Martin
(paid link until Rupert gets the keys...):
At a meeting scheduled for tomorrow, Chairman Martin plans to push a slew of new regulations on cable operators. Among other things, he wants to force cable companies to reduce, by as much as 75%, the already regulated rates they charge to lease channels to programmers. He also wants to require cable operators to settle carriage disputes, like the current one involving the NFL Network, through an arbitration system set up by the FCC. Apparently Mr. Martin, a Republican appointee to the agency no less, has lost faith in the free market's ability to handle commercial disputes. Either that, or he has some personal animus against cable.
Mr. Martin says more regulation is needed because monopolistic players are dominating the cable industry. But his premise doesn't remotely square with reality. Comcast, the nation's largest cable provider, recently reported a drop in subscriptions. Cable share prices generally are getting hammered, trading near 52-week lows. According to a report last week in Broadcasting & Cable, since Comcast's last earnings report its stock is down 17%; Time Warner is down 21%; Cablevision is down 16.5%; and Charter Communication is off 47%.
[...]
To justify his meddling, Mr. Martin describes a marketplace that doesn't exist. He pretends there's no DirecTV and EchoStar option. He pretends that Verizon and AT&T's video offerings pose no threat to Comcast and Time Warner. But if the FCC chairman is most concerned about costs, the goal should be more competition via different platforms. In other words, he should want current trends to continue. His odd and untimely proposals are more likely to retard them.
Some people still wonder why so many businesses donate to Democrats. Some of it is explained by rent-seeking and staying close to power -- but how can you ask business to donate to the GOP when their Cabinet Chairs think like Mr. Martin?
UPDATE: Never give up hope. The vote may be in trouble:
WSJ
WASHINGTON -- A vote Tuesday on a proposal that could lead to stricter regulation of the cable industry was in jeopardy Monday, as internal squabbling at the Federal Communications Commission and outside pressure from Congress and the White House threatened to delay, if not completely derail, the plan.
We're from the government, and here to help.
Posted by jk at November 26, 2007 10:14 AM
Should the federal government have prevented Apple from releasing the iPod until there were enough competitors to make a "market"?
Actually, only one seller is required to make a market. It's unadulterated bullshit that, as the interventionists claim, "markets require competition." Even if there is only one seller of a good or service, consumers always have a choice: they can choose not to buy.
The only reason cable companies are "monopolistic" is because local governments give them the monopolies. Cablevision is the only cable company that Westchester County permits to operate, even though RCN would be more than happy to get my business (and I'd be more than happy to give it to them). Cablevision's service is atrocious enough, but I can't imagine how much worse it would be without satellite competitors.
I stick with Cablevision for its cable modem service, but even then it's recently given me so many problems that I'm about to get Verizon's FIOS. And there would be many, many more people offering high-speed connections of all types, if only government would stop sodomizing the market.
Should the federal government have prevented Apple from releasing the iPod until there were enough competitors to make a "market"?
Actually, only one seller is required to make a market. It's unadulterated bullshit that, as the interventionists claim, "markets require competition." Even if there is only one seller of a good or service, consumers always have a choice: they can choose not to buy.
The only reason cable companies are "monopolistic" is because local governments give them the monopolies. Cablevision is the only cable company that Westchester County permits to operate, even though RCN would be more than happy to get my business (and I'd be more than happy to give it to them). Cablevision's service is atrocious enough, but I can't imagine how much worse it would be without satellite competitors.
I stick with Cablevision for its cable modem service, but even then it's recently given me so many problems that I'm about to get Verizon's FIOS. And there would be many, many more people offering high-speed connections of all types, if only government would stop sodomizing the market.
Posted by: Perry Eidelbus at November 27, 2007 2:44 PMThat's the best thing about government intervention: when you ruin the market with regulation, you can claim the market doesn't work and regulate further.
It's one thing when Rep Barney Franks tries to over regulate the mortgage industry at the start of a housing slump, his constituents expect that. Seeing a Bush appointee go this far is disheartening.
After I wrote that essay that lauded Michael Powell, he showed a regulatory streak on language and "wardrobe malfunctions" that I didn't cheer, but it was at least in character.
Posted by: jk at November 27, 2007 3:12 PM | What do you think? [2]