Free Republic

Coase’s FCC Legacy Bethany Stotts, December 1, 2009 At first blush the Federal Communications Commission (FCC)—which regulates “interstate and international communications” using “radio, television, wire” and “satellite”—doesn’t seem like much of a free-market mecca. But panelists at a recent conference held at George Mason University (GMU) argued that the FCC was significantly affected 50 years ago by Ronald H. Coase’s noted article, “The Federal Communications Commission.” In this paper Coase argues that, with regard to broadcast radio, “the government and its historians based their regulatory views ‘on a misunderstanding of the nature of the problem’” and “goes on to present...

...In an era of general acceptance of deregulation and privatization, Mr. Spitzer has introduced the world to yet a new form of regulation, the use of the criminal law as an in terrorem weapon to force acceptance of industry-wide regulations. These rules are not vetted through normal authoritative channels, are not reviewable by any administrative process, and are not subject to even the minimal due-process requirements our courts require for normal administrative rule making. The whole process bears no resemblance to a rule of law; it is a reign of force. And to make matters worse, the regulatory remedies are...