The FCC grossly overstepped it’s small legal authority in issuing “net neutrality” regulations
By Seth Richardson
Imagine this: The Food and Drug administration issues new regulations that will supposedly protect citizens from the economic disaster of having only a McDonald’s hamburger stand in their community. These regulations require that in order to provide “fast-food neutrality” all McDonald’s chain stores are required by law to vend hamburgers delivered to it’s stores by Burger King.
Moreover, the regulations require that McDonald’s sell the Burger King burgers at the price that Burger King sets, not at the same price McDonald’s charges for their product.
Burger King can now close down all it’s stores and simply ship pre-made burgers to McDonald’s outlets. This will save Burger King billions in expenses for things like real estate, buildings, employees, et cetera. Instead, they can assemble burgers on a production line in Mexico or China and ship them in bulk in a fleet of trucks, which are way cheaper than building brick-and-mortar stores all over the country.
So, Burger King can then set the price for their burgers far below the price McDonald’s can sell them for, and McDonald’s will be forced to vend the burgers for Burger King.
Does anyone fail to understand the natural, though unintended consequences of burdening McDonald’s with vending Burger King products that Burger King can supply at a fraction of the cost because it need not create the parallel infrastructure of Burger King stores full of employees?
For those that might not get it, the result is that McDonald’s will soon go out of business because it cannot compete with a rival that not only gets to use McDonald’s pre-existing infrastructure investment to vend its product, but that does not have to build its own infrastructure in order to access consumers., and can sell it’s products at a much lower price. Pretty quickly, nobody has ANY hamburgers.
This fiction is exactly what “net neutrality” regulations promulgated by the FCC do to companies like Comcast. The regulations will require Comcast to accept and deliver content from competitors, like Netflix, at a much lower price than Comcast can charge for the very same movie.
Netflix sells movies. Comcast sells movies. That’s fair competition, or so people think. The problem is that Comcast has invested billions of dollars building the infrastructure to deliver it’s products to its customers. Real infrastructure consisting of millions of miles of cables, wires, optical fiber, computers, routers and all manner of durable installations that allow Comcast to deliver digital data to its subscribers. In order to make a profit, it has to price its products sufficiently high to recover the cost of that investment in infrastructure.
Netflix, on the other hand, hasn’t spent a dime on such “final mile” infrastructure, much less interstate and intercontinental data backbone infrastructure. Netflix just buys the right to market movies and owns a bunch of servers and storage connected to the Internet. Netflix doesn’t have the costs associated with building all that network infrastructure to pay for, so it can charge far less for its products than Comcast.
Those who support “net neutrality” (through the brute force expedient of FCC regulations) are demanding that Comcast (McDonald’s) deliver Netflix’s (Burger King’s) products, even though doing so damages Comcast’s ability to pay for the infrastructure it developed and installed, much less make a profit.
That’s not only grossly unfair, it’s flatly unconstitutional and bad business practice. Comcast has a right to restrict who uses their infrastructure to deliver competing products. If Netflix wants to deliver movies to its customers, then it should either build its own network infrastructure, at its own expense, or it should pay Comcast what Comcast asks for the use of its infrastructure.
By the same token, Comcast should be under no obligation to deliver a directly competing product merely because it has a dominant marketing position in any particular area, any more than McDonald’s should be required to vend Burger King products merely because Burger King has decided not to open a local outlet in a particular region.
What the FCC has done is to seize the private property rights of Comcast and other internet service providers for the ostensible benefit of consumers, which is a violation of the Fourth Amendment proscription on taking private property for public use without just compensation.
This “net neutrality” regulation must, and likely will be tossed out… again… by the Supreme Court. And it should be. Because if it’s not, Comcast and other similar companies will go out of business, and everyone’s Internet access will be degraded or eliminated.
Remember, Comcast has invested billions in creating “final mile” infrastructure. If they go out of business, tens of millions of people will instantly lose connectivity to the Internet entirely, because Comcast is under no obligation to let anyone else use their infrastructure, or even keep it maintained.
So, “net neutrality” supporters, be careful what you wish for, and give some serious consideration to the unintended consequences of your position.
© 2010 Altnews
Governor Gloom, the duty to die, and Obamacare
December 30th, 2010, 12:20 am by Seth RichardsonObamacare will start the clock ticking on the tolling of the bell for you
By Seth Richardson
In 1984, Democrat Governor Dick Lamm made his Orwellian “we have a duty to die” comment. His actual statement was “We’ve got a duty to die and get out of the way with all of our machines and artificial hearts and everything else like that and let the other society, our kids, build a reasonable life.”
Lamm’s philosophy has been resurrected today in the Obamacare debate. There is substantial truth in the claim that Obamacare will at the very least create de facto, if not de jure “death panels.” This is because any socialized medical care system must perforce ration medical care, because with government-controlled and funded medical care there is simply never enough to go around at any sort of reasonable cost to the economy.
The calculus of who lives and who dies is a cruel one, because the non-productive always, inevitably, lose out. Under Obamacare this will occur through expedients of government-run medical panels recommending things like “women under 40 don’t need mammograms” and other policy-enabling medical decisions by Progressive lap-dog government experts about what comprises “reasonable and necessary” medical care. These decisions will, and indeed are right now being made by Progressive government lackeys in the Obama administration.
If some government-run medical panel says that regular colonoscopies for men aren’t “medically necessary” until men reach age 65, rather than the current recommendation that men over 50 get them, this medical recommendation will become public policy for government-run health care, including Medicare and Medicaid…and Obamacare. And since the ultimate goal of Obamacare, as stated by Obama himself before the election, is transition to a single-payer, government-run, mandatory, socialized universal health care that, like Canada’s did, prohibits private practitioners from providing out-of-network care to those who can afford it, public policy will dictate who gets and does not get “medically necessary” health care.
And what happens if you delay such medical screening for another 15 years? More men will die of colon cancer that was not detected early enough, which, like the recent guidance on mammograms, is the actual cost-cutting goal. This is what makes government-run medical recommendation panels into Obama Death Panels. They don’t decide on a case-by-case basis. Grandma will not have to stand before them and plead for her life. Instead, as faceless, inaccessible government bureaucrats, they will set broad government policy about the provision of medical services that are deemed to be “medically necessary” and they will allow people to die wholesale because diagnosis and treatment are delayed beyond the point of no return. And as faceless Progressive bureaucrats looking at balance sheets, they will never have to see the effects of their handiwork.
In Socialism, like Progressivism, because the individual and his rights are devalued and the system places greater value on the collective will and good, each person is necessarily forced into involuntary servitude to the State and is compelled to produce according to his ability. This system prohibits suicide because the individual is but a tool of the collective, and the tool must not be allowed to dull its own edge or impair its own usefulness to the needs of the collective. On the other hand, Socialism has no problem with destroying damaged tools once they have outlived their usefulness. This is why all socialized health care systems in existence ration medical care to the elderly, either overtly or covertly.
Socialists and Progressives use a cruel calculation of one’s economic value to the collective, based in how much work can be extracted. When the costs of supporting the worker unit exceed the costs of keeping it alive, they cuts their losses and find a way to dispose of the useless trash. How quickly or brutally slowly this happens depends on how close to full State Socialism the particular culture is. Under Stalinism, where data was kept on individual worker production, and when an individual worker’s productivity fell beneath an established standard, no mercy was shown and they were shipped off to the Gulags of Siberia to work on projects like the Road of Bones until they died, whereupon their corpses were buried where they fell.
Under Democratic Socialism such as the UK, France, or Canada, it’s more subtle, and the State allows the person to die slowly, and sometimes painfully, by reluctantly denying life-saving medical treatments on the excuse that it’s too expensive for society to provide, while simultaneously denying the sick the right to pay for their own medical care because that would be unfair to the other slaves. Government then laments their loss and exhorts the rest of its slaves to work harder, so that even more of the gross national product of the nation can be sucked down the socialized medicine toilet that still lines them up to wait for days, weeks or years for the inadequate treatment they might or might not receive.
That is precisely where we are headed under Progressivism and Obamacare.
No person should ever surrender themselves to involuntary servitude, and while death is the ultimate expression of liberty, as Patrick Henry said, it’s not for the government to decide when one must die. Nor should anyone submit to government murder through bureaucratic regulation or an infringement of the individual right to obtain the very best health care one can afford merely because the government deems your ability to obtain it to be unfair to others.
Don’t think for a moment that Barak Obama, Harry Reid, Nancy Pelosi and their minions are not making these calculations right now, however abstractly or covertly, because they are, and if they succeed, you too will one day exceed the cost/benefit calculus, and the bell will toll for you, whether you’re ready or not.
© 2010 Altnews
Posted in: Commentary | 11 Comments »