Posts Tagged challenge

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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Jesus and the Rich Man: A Call to Radical Individualism

Christ and the Young Rich Man by Heinrich Hofmann (1889)

Christ and the Young Rich Man by Heinrich Hofmann (1889)

Discussions of earthly systems almost always come down to disagreements over the use of capital — how it is distributed, created, or managed. Therefore, if we are concerned with the heavenly implications of our earthly systems, we must come to terms with how God views our earthly wealth.

Both the Gospel of Matthew and the Gospel of Luke include a story where Jesus addresses this topic directly. In the story, Jesus asks a wealthy man to give all that he has to the poor. Since plenty of people use the story as an excuse to demonize wealth and the creation of it, I wanted to clarify my thoughts on the matter.

The wealthy man begins the conversation by asking Jesus what he must do to inherit eternal life, to which Jesus answers with this:

You know the commandments: ‘Do not commit adultery, Do not murder, Do not steal, Do not bear false witness, Honor your father and mother.’

When the rich man explains that he has done these things since childhood, Jesus responds with this challenge:

One thing you still lack. Sell all that you have and distribute to the poor, and you will havetreasure in heaven; and come, follow me.

Upon hearing this, the rich man becomes very sad and turns away, effectively rejecting the call of Christ. After the man leaves, Jesus explains the situation to His disciples with this now-popular refrain:

How difficult it is for those who have wealth to enter the kingdom of God! For it is easier for a camel to go through the eye of a needle than for a rich person to enter the kingdom of God.

It is here where most people end the story. The moral, they tell us, is that wealth is bad and sacrifice is good — for if it is so difficult for the rich to get into heaven, certainly Jesus would advocate Read the rest of this entry »

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Environmental Entrepreneurship: Plastic Bags in Nairobi

When the environment gets neglected, we hear that government needs to take action. When the economy goes down the tubes, we are told that bureaucrats must come to our rescue.

But for Evans Githinji, a 32-year-old entrepreneur in Kenya, achieving prosperity and exhibiting proper stewardship is simply a matter of imagination and initiative. Kenya’s economy is far from thriving, yet Githinji has found a way to both curb environmental harm and bring value to his economy despite his disadvantages.

Hear his story here:

As the video tells us, Githinji’s efforts have led to the opening of 23 collection yards, each of which employs 100 youths in collecting plastic bags.

“I feel great,” says Githinji. “And I feel I’m doing something good for this nation.”

But would it have been better if the Kenyan government had stepped in long ago? Would it have been more efficient if taxpayer money had been poured into dumptrucks and garbage collectors? Would the government have a better grasp on wage rates than Githinji does? Would it be better for Kenyans if the government banned Read the rest of this entry »

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