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Net neutrality vs. house republicans (or "scalded by tea")
ZDNet ^ | March 1, 2011, 10:17am PST | By John Carroll

Posted on 03/07/2011 5:53:56 AM PST by wita

John Boehner thinks net neutrality rules are a threat to freedom in the United States (paraphrased, but that’s the thrust; click the link at left to see him in his own words). It’s a weird concept, given that Capitalism is replete with restrictions on freedom. I’m not free to borrow my neighbor’s car without asking, and when I sign a contract that I break, my freedom is greatly impinged by the full force of the legal system that will fall upon my rule-breaking head. I can’t reprint the latest Stephen King novel and sell it in a book store, and if I want to build a skyscraper, the government will spend lots of time making sure I adhere to stacks of engineering standards.

Capitalism, in other words, isn’t economic anarchy. It requires the creation of walls and barriers that guide human productive activity in useful directions. It’s a framework, built on rules created and enforced by government, that is as artificial as the gleaming reflective skyscrapers in downtown Los Angeles.

Granted, Capitalism is designed to harness natural impulses. Humans tend to be very good at focusing on the things that affect them directly, an impulse that has been described as “selfish” by some economists, but is really just a reflection of the human condition. We are, for all intents and purposes, ships sailing alone in life, and though we may lash ourselves to other vessels periodically (my wife may resent that comparison), our experiences are still uniquely our own. No outside entity can gather the same level information about our wants, needs and requirements, and that’s why central planning boards have a hard time out-thinking the collective rationality of individual buyers and sellers. Those vessels navigate the economic seas armed with more accurate information than any third party could possibly collect. That is, in one paragraph, the essence of Austrian Economist Ludwig Von Mises criticism of Socialism.

But therein lies the paradox of Capitalism. Yes, you need to respect the collective decision-making power of the masses, as it has the most accurate information upon which to base choices. On the other hand, you must have a structure that channels those impulses. If that wasn’t the case, Somalia with its absence of government would be a Capitalist paradise. The walls that guide the capitalist mice through the maze are as essential to the functioning of capitalism as the mouse’s desire to find that yummy cheese.

There is a point to all of this, and it is that, in my humble opinion, Speaker of the House John Boehner (R-OH) and the entire Tea Party-inspired Republican party have fetishized one critical aspect of Capitalism as if it was the only thing that matters. I spoke in a previous article about fixating on the engine to the exclusion of the wheels, chassis and steering wheel (among other things). Just to add to my metaphorical heap, I think the current Republican stance on net neutrality is like telling a long distance runners to eat carbohydrates exclusively, all the while ignoring the fact that most keel over in a few weeks from scurvy or some other vitamin deficiency.

As I explained in that previous article, ISPs and providers of network access have a real need to make money from their infrastructure. If they don’t, bandwidth constraints tighten rather rapidly as providers have little incentive to boost capacity to support the massive shift in user behavior precipitated by rapid growth in the consumption of Internet video. I’m contributing to the bandwidth problem, as I have cut the chord to subscription cable services, replacing my television experience with what I can stream through my XBOX 360 (your mileage may vary; I have a second child on the way, so it suits me perfectly).

There is, however, an inherent conflict of interests. Carriers have a strong economic motivation to do things to hinder competitors like Netflix who are “stealing” away subscribers from their built-in video streaming options. They don’t even have to do something so crude as banning access to Netflix servers. They can just price things such that Netflix, as an alternative, is uneconomical. Don’t think carriers would do that? Did you think banks would erase the risk premium on bad loans by packaging them into securities that were sold to Icelandic pensioners (among others)?

It’s a simple and obvious choke point. Carriers control the data pipe that leads into your home. Due to the difficulties of laying parallel wires that serve the same customers, most users have, if they are lucky (and many aren’t), only two credible alternatives for fixed-line broadband. That is, by any standard, a monopoly position as unassailable as the oil pipeline’s control over the distribution of an essential source of power across this country (which is why Reagan turned them into common carriers). Why wouldn’t it makes sense to make sure carriers can’t abuse that position?

Arguing that the FCC’s rules aren’t properly designed to do what they aim to do is one thing. What the Republicans are arguing, however, is essentially that the problem does not exist, couching it in soft, gauzy words like “freedom” and “constitution” to hide the fact that economic goals aren’t their primary consideration. Badly understood abstract principles are what matter, and that is a serious problem.

Like I said before (and I can quote myself as much as I want): “I hate the language of rights.” It obscures ability to deal with the goals we are trying to achieve, painting the battle between the different options in near-religious terms. How can one consider creating rules that prevent carriers from blocking video alternatives when what is being proposed is the functional equivalent of enslavement? It’s like arguing with someone that believes that he can’t get medical treatment for his child because God doesn’t want him to.

As parting words to those who like to put everybody into neat and simple categories, I’m about as free market as it comes. I’m a big proponent of reducing global trade barriers, and believe that real freedom can only come when we stop hiding behind the walls of the places we were accidentally born and start thinking about the GLOBAL economy (and well being) as things that really matter. Sitting in my blog someday pile is a response to David Gewirtz’ ridiculous notion that Apple should use robots to replace foreign workers so that approximately 1000 Americans can replace a 100,000+ Chinese work force (which I called the Cylon solution…never mind, it isn’t important). Heck, I don’t even think Reagan, the man who pushed through the biggest amnesty of illegal immigrants in this nation’s history and was a driving force in the global free trade negotiations that led to the WTO, would have disagreed with me.

I’m a free trade, global freedom advocate. I just happen to understand what in the hell makes capitalism work, and it isn’t some blind devotion to the notion of the invisible hand. If that was the case, Japan’s MITI program wouldn’t have built all the major Japanese electronic manufacturers from the dust of WWII, Korea’s Chaebol wouldn’t have given us Samsung and LG, America’s university system wouldn’t be the best in the world (18 of the top 20 are American, and many of those are public), and a simple thing like turning oil pipelines into regulated common carriers wouldn’t have made natural gas competitive. Granted, Japan and Korea supported their favored industries for too long, and there is always a limit to what government should do in education (K-12 education in the US is a marked contrast to our experience at the university level), but the principle stands. Government is an essential component of capitalism, and all the gross simplifications won’t change that.

The invisible hand, in other words, is a force that only functions properly if provided the right context…and context takes work. Markets exist only in the presence of sensible regulations designed by smart people who have the incredibly difficult task of designing rules that guide the individual choices of billions of economic actors in useful directions. I don’t pretend that is a simple thing to do, but I reject categorically Republican willful refusal to even try.

Absence of government isn’t economic nirvana. It’s Somalia. I sometimes wonder if today’s Republican party understands that.


TOPICS: Business/Economy; Government
KEYWORDS: netneutrality
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Curious what Freepers make of this article containing “I hate the language of rights.” and this: I’m about as free market as it comes. I’m a big proponent of reducing global trade barriers, and believe that real freedom can only come when we stop hiding behind the walls of the places we were accidentally born and start thinking about the GLOBAL economy (and well being) as things that really matter.

Has the scent of anti-american globalist, but who am I to judge? /sarc

1 posted on 03/07/2011 5:53:59 AM PST by wita
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To: wita

> stop hiding behind the walls of the places we were
> accidentally born and start thinking about the GLOBAL
> economy

Maybe you were accidentally born in the U.S, but my parents deliberately left a despotic socialist totalitarian state to come to this country, where their children could be born free.

What a spoiled, pampered, myopic brat the article’s author is!


2 posted on 03/07/2011 6:04:15 AM PST by Westbrook (Having children does not divide your love, it multiplies it.)
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To: wita

“context takes work. Markets exist only in the presence of sensible regulations designed by smart people who have the incredibly difficult task of designing rules that guide the individual choices of billions of economic actors in useful directions. I don’t pretend that is a simple thing to do, but I reject categorically Republican willful refusal to even try.”

In other words, to have a “responsible” media and a “responsible” economy, we the peasants and rabble need the superior intellect of progressives to train a generation in the “rules” of acceptable speech and “acceptab;e” welath redistribution.

Bushitler=good. obamafascist=bad.
Reparations=good. Unearned income= bad.
worker salaries=good. owner profits= bad.
democrat=good. republican=bad


3 posted on 03/07/2011 6:04:42 AM PST by silverleaf (All that is necessary for evil to succeed, is that good men do nothing)
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To: wita

Typical leftie. He conflates “government” with “culture”. This is the subject of much of my (forthcoming, God willing) book “Conservatism for Lefties”.

The reason that America is not Somalia is that it was founded by British Christians and not African Muslims. Somalia does have a government; it just doesn’t work. And the reason that it doesn’t work is that Somali culture doesn’t want it to work.

Americans can survive without government because we have a culture (or did, it is rapidly fading) that respects individuals and rights.

I much prefer a culture of rights and individuals without government than a government without a culture of rights and individuals.


4 posted on 03/07/2011 6:05:00 AM PST by PhilosopherStone1000 (http://www.freerepublic.com/focus/f-bloggers/2649877/posts)
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To: wita
What do I think? This author is dangerously stupid.

"It’s a weird concept, given that Capitalism is replete with restrictions on freedom. I’m not free to borrow my neighbor’s car without asking,"

apparently he does not know that's called STEALING (maybe we all own the car in his socialist utopia)

Somalia is not a capitalist paradise because THERE ARE BAD GUYS IN CHARGE - no one in his right mind would start a business there

5 posted on 03/07/2011 6:06:45 AM PST by Mr. K (Job #1 DEFUND THE LEFT then Palin/Bachman 2012 -Unbeatable Ticket~!)
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To: Mr. K; All

Appears the voting is unanimous.


6 posted on 03/07/2011 6:13:19 AM PST by wita
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To: wita
I’m not free to borrow my neighbor’s car without asking,
No one is asking to borrow the neighbors car, or author's for that matter. Does one ask permission to to drive on the public road? You can't just jump on somebody's personal website without permission but you are free to "drive the internet highway". By authors logic government would have to assure as many Priuses (Prii?) on the road as SUVs to have highway neutrally. Hmmm, come to think, maybe the Government is doing that.
7 posted on 03/07/2011 6:13:53 AM PST by dblshot (Insanity - electing the same people over and over and expecting different results.)
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To: wita

Bump for later.


8 posted on 03/07/2011 6:16:46 AM PST by JimRed (Excising a cancer before it kills us waters the Tree of Liberty! TERM LIMITS, NOW AND FOREVER!)
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To: wita

Absence of government isn’t economic nirvana. It’s Somalia. I sometimes wonder if today’s Republican party understands that.

Such a statement indicates a severe lack of awareness of economics, or the republican party.


9 posted on 03/07/2011 6:23:26 AM PST by wita
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To: Westbrook

“start thinking about the GLOBAL economy”


Yeah, it’s coming, we’ve been told, for millenia we’ve been warned to watch for it as a sign. There’s also a one world religion coming as well, and we see the roots of that as well in Environmental Humanism.


10 posted on 03/07/2011 6:26:15 AM PST by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: PhilosopherStone1000

This is the subject of much of my (forthcoming, God willing) book “Conservatism for Lefties”.


Is this a followup to your widely successful book
“Color for the Blind”?


11 posted on 03/07/2011 6:27:12 AM PST by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: wita

John Carroll seems to have missed the second grade. And the third. And - - - but why bother? He’s a Liberal/Progressive and can’t hold a conversation.


12 posted on 03/07/2011 6:39:29 AM PST by RoadTest (Organized religion is no substitute for the relationship the living God wants with you.)
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To: RoadTest

Does pretty well on the one sided rant. Not sure how many subjects he hit on but he very curiously ignored the one he claimed the article was about.


13 posted on 03/07/2011 7:04:43 AM PST by wita
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To: Mr. K

Agree this person’s thinking IS dangerously stupid. This is what comes of dropping Traditional Liberal Education, ala Hillsdale, for whatever it is we teach in school these days.

Nobody believes that “freedom” is the responsibility nor the goal of the US system of law. Our laws are based on the concept that government is to insure the rights to property. Additionally, government is not to do certain things. Government is not to restrict our religious beliefs (as opposed to acts: violent jihad is not a tolerable religious act, though one is free to believe so in this Nation), infringe on the rights of citizens to bear arms, to speak publically against the acts of the government and government officials, or to freely associate.

Net neutrality has nothing to do with borrowing a neighbor’s property without consent. It has to do with Constitutional rights to free speech and free association. This person is either purposely associating these two ideas to maliciously deceive his audience, or is supporting a new concept of “freedom” that is equivalent to George Orwell’s Big Brother.

The NappyOne


14 posted on 03/07/2011 7:53:36 AM PST by NappyOne
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To: wita
I’m not free to borrow my neighbor’s car without asking, and when I sign a contract that I break, my freedom is greatly impinged by the full force of the legal system that will fall upon my rule-breaking head.

But I am free to take my own car without asking. The idea of the left is to restrict my use of my car to protect someone else's car.

15 posted on 03/07/2011 11:44:23 AM PST by Mike Darancette (The heresy of heresies was common sense - Orwell)
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To: wita

The man is a statist capitalist of the worst kind. We don’t need regulators, the free market will take care of things by itself. Build it and they will come.


16 posted on 03/07/2011 5:45:10 PM PST by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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To: PhilosopherStone1000

It’s nice to see that you didn’t kill yourself, ya jerk.


17 posted on 03/07/2011 7:44:14 PM PST by TigersEye (Who crashed the markets on 9/15/08 and why?)
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To: TigersEye

There’s plenty of time for that later. As Nietzsche once wrote, “the thought of suicide is a great comfort. It gets one through many a lonely night...”


18 posted on 03/07/2011 8:25:16 PM PST by PhilosopherStone1000 (http://www.freerepublic.com/focus/f-bloggers/2649877/posts)
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To: PhilosopherStone1000

So, that whole thread was just your way of jerking FReepers around!?! What an a-hole you are.


19 posted on 03/07/2011 8:47:20 PM PST by TigersEye (Who crashed the markets on 9/15/08 and why?)
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To: TigersEye

You’ve obviously never had nights like that. I envy your current and past abilities to always choose, and to have chosen, the right path. I bow down before your superior acumen in all things concerning life.


20 posted on 03/07/2011 8:51:45 PM PST by PhilosopherStone1000 (http://www.freerepublic.com/focus/f-bloggers/2649877/posts)
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