Posts Tagged discovery

Monopolies and Competition: Mom! Dad! AT&T’s Not Sharing!

AT&T, T-Mobile, cell phone, acquisition, monopoly, competitionIn my most recent post at Ethika Politika, I comment on AT&T’s recent plans to acquire T-Mobile, a move that has garnered cries of “monopoly!” (or “duopoly!”) from all sides.

But although many see AT&T’s actions as “anti-competitive” in nature, I see no such thing. From where I stand, the acquisition has great potential to improve the company’s output, which could indeed benefit consumers and invigorate competition in the industry:

With a newly expanded network, AT&T could greatly improve its ability to expand service to rural areas. Due to increased economies of scale, it is likely that prices could decrease across the board. Additionally, although critics claim that the tightening of the market will have a negative impact on innovation, many believe it will raise the stakes (“mono y mono!”), leading to improvements on any number of company weak spots, from customer service to overall quality of service.

Yet whether the deal will be good or bad for (anyone’s) business is secondary; such matters remain debatable. The core issue, as I see it, rests in the mindset of those who adamantly oppose the deal on limited evidence, particularly those trying to prohibit it from happening altogether.

As I argue, the problems with such a mindset can be broken into three main areas: (1) a fear of competition itself, (2) a misunderstanding of the company-consumer relationship, and (3) a corresponding pessimism and all-around static view of human ingenuity and potential.

I expound on each, but regarding the third (and most important), here’s an excerpt:

Do we really believe that markets are that unmovable, or that we as innovators, explorers, and dreamers do not have what it takes to meet whatever challenges and needs may arise? Are we really so short-sighted that we Read the rest of this entry »

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Love That Ends in Bloodshed: G.K. Chesterton on Division and Unity

G.K. Chesterton, OrthodoxyI recently wrote a piece at Ethika Politika discussing the problems we encounter when we pursue unity for the sake of unity. My basic argument — which is partially borrowed from Kenneth Minogue — is that moderation lends itself toward ambivalence, and ambivalence wanders from truth.

Shortly thereafter, my good friend RJ Moeller pointed me toward an excerpt from G.K. Chesterton’s Orthodox, which illuminates similar similar points from a Christian perspective.

In this case, Chesterton points to the differences between artificial unity and active love (a close cousin of truth).

It is just here that Buddhism is on the side of modern pantheism and immanence. And it is just here that Christianity is on the side of humanity and liberty and love. Love desires personality; therefore love desires division.

It is the instinct of Christianity to be glad that God has broken the universe into little pieces, because they are living pieces. It is her instinct to say “little children love one another” rather than to tell one large person to love himself.

This notion of being “living pieces” translates quite well into an individualistic approach to our public endeavors, particularly when we consider the benefits that can come from active struggle and engagement.

Chesterton continues, noting that Jesus made it clear his blood and sacrifice would provoke division, not soften it:

We come back to the same tireless note touching the nature of Christianity; all modern philosophies are chains which connect and fetter; Christianity is a sword which separates and sets free. No other philosophy makes God actually rejoice in the separation of the Read the rest of this entry »

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Prophet Motive: Islam and Economic Growth

The Silk Merchant, Islam, painting, merchantsThis week at Common Sense Concept, I take a closer look at John Cassidy’s recent piece in The New Yorker on Islam and economic growth (“Prophet Motive”).

Cassidy’s piece provides a good overview of Islamic economic history (or, at least, one side of it). His eventual conclusion, however, does not exhibit the degree of critical curiosity that one would hope for. In the end, I think his approach is largely limiting to our discussions about the relationship between religion and economic growth.

According to Cassidy, we are not to analyze Islam itself as a religious belief system. Instead, we should focus on more “predictable” indicators of economic activity.

Here’s an excerpt:

[Cassidy points to] more “traditional methods” of analysis, such as focusing on “the way beliefs are codified and institutionalized,” rather than dwelling on theology, philosophy or moral doctrine (as Weber and Novak do). For Cassidy, the matters related to the religion itself —the “spiritual stuff” — are largely unreliable. To make real progress in analyzing religion and economic growth, Cassidy believes we should look toward firmer, more measureable developments in the politico-religious (e.g. usury laws, business partnership, limitations or inheritance practices, etc.).

I disagree with this view and think that religion is indeed a valid investigation tool.

Here’s my response:

If we are going to analyze the merits of a particular religion as it relates to an economy, it makes little sense to toss out the fundamental features that define religious institutions and set them apart from those in the socio-political realm.

Whether formally codified/institutionalized or not, our religious beliefs and convictions fundamentally transform our perceptions, and thus they largely impact our visions. Regardless of whether the specific religion, god, or authoritative text is actually true, Islam has just as much potential to instigate such an effect as Christianity.

To read the full post, click here.

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The Age of Moderation: Western Ambivalence and the Moral Life

The Servile Mind: How Democracy Erodes Moral Life, Kenneth Minogue, London School of EconomicsToday at Ethika Politika, I discuss the value that division and conflict can bring to our pursuits of moral truth.

The problem, however, is that divisiveness is particularly out of fashion these days. Indeed, many seek to force “unity” on others from the top down — a feature of modern society that Kenneth Minogue likes to call “Western ambivalence.”

Here’s an excerpt from the post:

We are told to “soften our rhetoric,” to “reach across the aisle,” and to “find common ground.” We are reprimanded for framing matters of life, liberty, and the pursuit of happiness in moral terms. No longer should our debates be about the merits of this vs. that, but rather, we are to concern ourselves with the supremacy of neither. Not surprisingly, this doesn’t get us too excited about anything.

The consequences of this appear quite clear. Without a drive toward engaging ideological struggles (and the ability to do so), how will the moral life ever flourish?

Here’s another excerpt:

The danger of today’s widespread ambivalence, therefore, is not necessarily that everyone might pretend to submit to a single, unified “truth” (although they certainly might), but rather that they would be too ambivalent to know it. As with our competitive endeavors in economics, a retreat from the active, heightened struggle of what Minogue calls the “moral life” will lead to an unauthentic, untried society in which ambivalence equals unity, and unity trumps morality.

As already indicated, Minogue’s views provide some valuable insights on this matter; thus, I found it helpful to leverage a few ideas from his recent book, The Servile Mind: How Democracy Erodes the Moral Life.

To read the full post, which contains more of my thoughts on Minogue’s book, click here.

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Winning to Live: Competition Is About Discovery

horse, racing, competitionEconomist Friedrich von Hayek once referred to competition as a “discovery procedure.” This week at Ethika Politika, I explore what that means for us as moral individuals.

Far too often we confine our thinking about competition to matters of “justice” or “fairness.” Such considerations are certainly relevant and important, but I fear that we tend to fall back on them as a way of avoiding the impending risk and vulnerability within the competitive process.

As I argue, we must be careful not to lose sight of the ultimate purpose or value of competition, which is, above all, discovery.

Here’s a brief excerpt:

Competition leads to reaction. It demands, provokes, and prods. It draws out information. When we engage in competitive activity, we are bound to uncover something new. We will not be certain of the end goal, and we will not be certain of the end result, but the information we gain throughout the process will point the way towards true value.

Here’s another:

The good news is that although competition may lead to a frustration of our original intentions, it need not be the frustration of our entire destinies. It may tell us that our role in the larger equilibrium (Hayek prefers the term “order”) has shifted, but it is up to us to find ways to provide value in the shifting frontier. We can certainly remain idle as we watch the world transform, or we can participate and innovate, continuing to develop as individuals and as a society.

Read the full article here.

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