16.Apr.2010 at 16 | xn
AT&T Shows Markets Work; Feds Still Don't Get It
Once again, competition proves a benefit to consumers, while the Federal government howls about “fixing” a “problem” that’s none of its business.
Exhibit #1: The author of this AP story about the advertising wars between AT&T and Verizon inadvertently praised free markets:
The ad war even prompted lawsuits, although the two agreed late last year to drop the cases that accused each other of lying in ads. AT&T did take some of the criticism about its dropped calls and slow downloads seriously. It announced in late January it would spend an additional $2 billion to improve its network this year.
Did you catch that? Because of the relentless criticism it received from Verizon, and fears that it would lose customers, AT&T decided to spend $2 billion of its own money (not tax dollars) to improve its services to customers. That’s the free market in action.
No government interference needed, no raised taxes, no campaigns to “improve wireless service for the poor & disadvantaged”. Just competition and rational self-interest. Oh, and deregulation.
Contrast with John Stossel’s Exhibit #2: Transportation Secretary Ray LaHood, about Spirit Airlines’ decision to charge passengers for carry-on luggage:
“We’re gonna hold the airline’s feet to the fire on this. Because we have an obligation to do it and we have the ability to do it.“
Never mind that Spirit a private company, and that passengers in a free society have other choices.
Never mind that the market alone can accurately determine what the price point for any industry “should” be.
Never mind that nowhere does the Constitution give the Federal gov’t the authority (much less the “obligation”) to set prices for carryons.
Never mind that rising fuel costs impact the airlines’ bottom lines, and that they must decide how to respond in order to stay in business.
Never mind that price controls have NEVER worked, and are rife with unintended consequences.
Never mind that deregulation has benefitted consumers, and the only transportation service under government purview (Amtrak) consistently operates at a loss.
Never mind that Southwest Airlines is running a pretty successful ad campaign on the fact that they DON’T charge for luggage.
None of that matters. All that matters is that government has the power (NOT the same as “the authority”) to do it. At the point of a gun.
And you wonder why people are concerned with size and scope of government?
