Posts Tagged exploitation

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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Collective Bullying: The Social Injustice of Public-Sector Unions

This week at Common Sense Concept, I comment on the recent goings on in Wisconsin, focusing specifically on what I call the social injustice of collective bargaining in the public sector.

Here’s an excerpt:

The most dizzying of the spin has been the notion that public workers are entitled to a “right to collective bargaining” — a claim made so frequently and with such conviction that one would assume the taxpayers were granted some bargaining powers of their own.

But alas, although politicians began to invent such rights in the 1950s, the merits of these unique privileges have been highly contested, even by the likes of pro-union leaders like FDR and George Meany.

If you think that “social justice” is an odd way to approach the issue, I am somewhat sympathetic. (What doesn’t constitute social justice nowadays?) But as long as folks are tossing the label around about fake exploitation (as they often do), I thought I should at least be entitled to use it about the real stuff:

Framing my argument in terms of “social justice” will surely strike the pro-public-union crowd as odd. After all, they are the ones scolding the rich for “excess” and comparing Wisconsin teachers to third-world sweat-shop workers (need a laugh?). But when one begins to understand the unfair advantages that public-sector unions hold over the rest of the citizenry, such moping and mourning is quickly revealed to be the posturing Phariseesm that it is.

After examining the ins and outs of various public-sector advantages (relying heavily on Yuval Levin), I conclude that the institutionalized, coercive privileges held by public-sector unions are far more troublesome than their bloated line-item status in the budget:

Governor Walker claims that his actions are fundamentally about the budget, but based on the reactions from the unions (“It’s not about the money!”), it appears that the real gem they treasure is their coercive “right” to collectively bargain over the funds of the private citizens they are supposed to serve — a privilege of unfair and exploitative advantage.

To read the full post, click here.

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