How Political Corruption Is Responsible For 80% Of Your Cell Phone Bill

Discussion in 'Current Events' started by texan, Apr 12, 2012.

  1. texan

    texan Well-Known Member

    How Political Corruption Is Responsible For 80% Of Your Cell Phone Bill

    Last year, a new company called Lightsquared promised an innovative business model that would dramatically
    lower cell phone costs and improve the quality of service, threatening the incumbent phone operators
    like AT&T and Verizon.

    Lightsquared used a new technology involving satellites and spectrum, and was a textbook example of how
    markets can benefit the public through competition. The phone industry swung into motion, not by offering
    better products and services, but by going to Washington to ensure that its new competitor could be killed
    by its political friends. And sure enough, through three Congressmen that AT&T and Verizon had funded
    (Fred Upton (R-MI), Greg Walden (R-OR), and Cliff Stearns (R-FL)), Congress began demanding an
    investigation into this new company. Pretty soon, the Federal Communications Commission got into
    the game, revoking a critical waiver that had allowed it to proceed with its business plan.

    And so Americans continue to have a small number of expensive, poor quality cell phone providers.
    And how much does this cost you? Take your phone bill, and cut it by 80%. That’s how much you
    should be paying. You see, according to the Organization for Economic Cooperation and
    Development, people in Sweden, the Netherlands, and Finland pay on average less than
    $130 a year for cell phone service. Americans pay $635.85 a year.

    Why does the FCC and why does Congress want us to have high cell phone costs?
    Well, they don’t, not really. It’s more accurate to say they don’t particularly care about
    our problems, but are responding to an entirely different problem that is completely
    unrelated to cell phones.

    The government is responding to the need for campaign contributions for politicians.

    In other words, we are stuck with big bad cell phone companies not because those companies
    are good at providing cell phone service (which anyone with a dropped cell phone call knows), but
    because they are good at corrupting markets through political donations.
    AT&T has the single biggest donor group (known as a “Political Action Committee”) in Washington, DC.

    How Political Corruption Is Responsible For 80% Of Your Cell Phone Bill - |
  2. menotyou

    menotyou bella amicizia

    That's why no donations at all should be the law of the land. and, term limits.
  3. wkmac

    wkmac Well-Known Member


    Great piece. Textbook example of Crony or State Capitalism at it's best and what is known as regulatory capture. Between gov't itself in regulatory form and the monopolized monetary system and it's ever inflating fiat currency, rent seeking costs are so toploaded onto the end user costs of goods and services that a growth class of poor is all but guaranteed. This opens the door for statism to step in and fill this market void as a solution and savior while empowering the connected as electoral power brokers and their appointed lackey power players who get held up as some kind of leader. All the while guiding everyone back to the snakehole everytime to just be bitten again and again.

    Once we realize that State Corp. Capital and the State are not our friends and work against us at every level, then we can begin to work outside that manipulated markets as pirates and black marketeers especially in the local market and start building structures that undercut this market manipulation.