Net Discrimination

The two Democrats on the Federal Communications Commission finally let the AT&T-BellSouth merger proceed last week, though not without some major political rent-seeking. AT&T CEO Edward Whitacre had to agree to follow "Net neutrality" mandates for two years -- after having once said that such a policy would be "nuts."

He was right the first time. But that's a matter between him and his shareholders, and perhaps Mr. Whitacre anticipates that after two years he will be able to return to charging market prices for the use of his broadband pipeline. He'd better hope that the policy precedent set by his merger concession doesn't become a battering ram for Congress to make Net neutrality permanent. In the meantime, he gets full control of Cingular Wireless, which is where much of the telecom action now is.

Regardless of Democrat bleating to the contrary, this has nothing to do with "protecting consumers." We'll leave aside the insanity of that proposition for the moment. This had to do with who was getting what PAC money. As well, it makes Democrat whining about "Republican corruption" all the more disgusting.

It is also a sterling illustration of why corporatism is inferior to real capitalism and why the combined weight of corporatism and statism is smothering innovation in this country. The good news is that other developed nations lead us in smothering innovation under the weight of socialism. The bad news is that innovation on the planet is in serious danger of going out like a candle in a collapsed coal mine. Such is the inevitable result of the half-witted quest for "social justice."