By Mike Cronin

So, the FCC decided to end Net Neutrality, and now there is an uproar. The main objection seems to be that now internet service providers (ISPs) like Cox, Comcast, and Verizon will be able to charge whatever they want for their services, block whatever sites they like, and throttle unprofitable traffic in favor of profitable traffic.   Net Neutrality prevented ISPs from doing this…at the cost of allowing the government to decide what private businesses did with their own property – namely the cables, switches, servers, and fiber optic lines they send their signals over. When people are allowed to own private property, but it can only be used in a manner specified by government, you have fascism.

Ending Net Neutrality is taking a step back from fascism, but it does not alleviate the concerns of individual/residential ISP customers.  Now we are back to the big private ISPs being able to run roughshod over us and treat us like our business doesn’t matter, right?  How can our business not matter to them? (Actually, it does matter, just not so much at the individual level, but as a mass.)  Even so, that’s not the real problem.

The real problem with internet service is that the ISPs, through agreements with various governments and established back in the pre-broadband days when they were just cable TV providers, usually have local monopolies.  That means if you want broadband internet service via cable, you usually only have one ISP option in your area.  That means you generally can’t take your business elsewhere if you are dissatisfied – which means you have little or no leverage over the ISP, unless you are willing, and financially prepared, to take them to court.

In short, Net Neutrality was a hackneyed, fascist government intrusion necessitated as a “solution” to a more basic hackneyed, “crony-capitalist” (i.e. corporatist) government problem.

Here’s an analogy. Let’s say you buy your groceries at Safeway.  They disappoint you in some fashion, so you decide to shop at Super Walmart instead, then you switch to Fry’s (or whatever).  If grocery stores were like ISPs, there would not be any other stores in your area. Safeway (for example) would be in cahoots with your local government, and you would only have one choice. Now, suppose more and more people complain to the government about how terrible the service is at the local Safeway store. The store charges different prices based on whether a given customer buys in bulk or not. In other cases, the Safeway refused to carry some customers’ favorite items, because they are obscure or hard to obtain and don’t sell at a profit. The local government decides it has to do something about the problem.  They enact “Grocery Neutrality.” They tell Safeway that they can’t discount prices to customers who buy in bulk (or they must sell to everyone at the bulk discount price, regardless of how much they actually buy). They also tell the Safeway that they must order anything a customer wants, unless it’s illegal, regardless if it will generate profit or not. Would it not be simpler and more in keeping with the spirit of a free country for the local government, instead of dictating to Safeway what it can and cannot do with its own property, to simply end Safeway’s monopoly and let in any grocery company?

The same is true of ISPs. The solution to the problem of ISPs treating smaller customers poorly (because the ISPs have a government-sponsored monopoly over the local market) isn’t more government interference in the form of Net Neutrality, it’s monopoly dissolution!

Weasel Words: Crony Capitalism


By Mike Cronin

No doubt you’ve heard the term “crony capitalism.” It’s a “weasel word.” Weasel words are terms or phrases that are used to steer your thoughts or beliefs away from the hard truth.

As I’ve discussed elsewhere, both of the dominant political philosophies in American discourse today, liberalism and conservatism (each weasel words in their own right, to discuss in separate posts!) tend towards the collectivist end of the political spectrum vice the individualist side. Neither school wants fully unchecked free market capitalism. The liberal school believes capitalism is exploitative, but it knows that without a productive economy that is at least semi-free, there will be no wealth to “redistribute.” The “establishment” branch of the conservative school professes to hold capitalism in high regard, but has never given up political power by totally de-regulating our economy and giving us a truly free market, despite having had occasional chances to do so. (The “Tea Party” branch of conservatism espouses capitalism and free market economics, but it has yet to achieve enough power in Washington to affect any changes to our mixed-economy system.)

Hence, members of both camps use the term crony capitalism in place of the term “corporatism” as a way to attach a negative connotation to pure capitalism. Corporatism is the result of industries, large corporations, unions, and other pressure groups essentially “buying” the laws and taxes and tariffs they want in order to change the game against their competitors. The competitive principles of bringing the best product to the buyer at the best price are replaced by using the coercive power of government to penalize or prevent the activities of newer, smaller or foreign businesses, or to rake in subsidy and bailout money.

Capitalism, and the free market, is the politico-economic system that develops as a natural result of government that recognizes and protects individual rights and liberty. It rewards achievement and is free from governmental coercion. We have never had a fully free and unfettered market in the US, yet our greatest periods of economic growth and prosperity have occurred during the times when our market was freest and our government was most constrained. China has risen to become the world’s second largest economy over the last 30 years because it shed many aspects of communist central economic planning and adopted some free market reforms. If China ever allowed its 1.4 billion people the same amount of political and economic freedom as we have enjoyed from time-to-time in this country, it would easily eclipse the US as an economic power. In essence, China’s rise is commensurate with the degree it has adopted free-market economic principles, and the decline of the US is commensurate with the degree corporate and other pressure groups, via government coercion, have shackled our economy.