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Open Letter to FCC Chairman Powell

Adina Levin writes "An open letter to FCC chairman Michael Powell signed by internet and tech industry pioneers explains why the government shouldn't prop up the ailing telecom behemoths. Telecom companies bought expensive network technology with long bonds. That technology has been made obsolete by gear getting faster and cheaper all the time by Moore's law and Metcalfe's law. The telecom companies are asking for the equivalent of a bailout for their investments in sailing ships after the advent of steam. The way to speed the deployment of broadband to homes isn't to prop up businesses based on old technology, but to let uncompetitive businesses 'fail fast', and let new competitors play."

230 comments

  1. Legitimate reason for bailout? by httpamphibio.us · · Score: 5, Insightful

    Doesn't their existing infrastructure, and social dependency on that infrastructure, give them a somewhat legitimate need for a bailout? If other, smaller, more efficient companies can replace everything the telecom behemoths do, then let the big boys suffer, but is that the case? Can smaller tech savvy companies do everything the large telecoms do or are we talking strictly about broadband internet?

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    sig.
    1. Re:Legitimate reason for bailout? by tobo · · Score: 0, Flamebait

      Well, the point is that it is fundamentally wrong for the government to do anything to hinder the workings of the market economy.

      This is why we should seriously consider abolishing the government and leaving everything to the market forces.

      People like Friedman and Hayek have proved that markets are the ultimate source of truth, at least in this world.

      Though it is always funny to read how commie CEO's beg for state subsidies to help their mismanaged companies.

      The market economy answer is of course: sell it if it doesn't work.

    2. Re:Legitimate reason for bailout? by evbergen · · Score: 4, Insightful

      This is why we should seriously consider abolishing the government and leaving everything to the market forces.

      I don't know about you, but I'd sure miss the powers granted to me by the fact that I live in a democracy right now, and the rights granted to me by my country's constitution.

      Go back to the jungle, or participate in a free fight, if you think that's best for humanity. But please allow the rest of us to strive for some civilization. Thanks.

      --
      All generalizations are false, including this one. (Mark Twain)
    3. Re:Legitimate reason for bailout? by cp99 · · Score: 2

      Well, the point is that it is fundamentally wrong for the government to do anything to hinder the workings of the market economy.

      Fundamentally wrong? What tablets of stone are you getting this from?

      Methinks you should apply a little skeptism before making such broad statements as these.

      --
      Warning: Some ideologies on the Net are smaller than they appear.
    4. Re:Legitimate reason for bailout? by October_30th · · Score: 5, Insightful
      This is why we should seriously consider abolishing the government and leaving everything to the market forces.

      Like health care? "Sorry, sir. I know there's a gaping wound in your skull and that it hurts, but your credit is no good here. Please go away and die outside in the gutter with all the other poor people."

      Like law enforcement? "I'm sorry, sir, but there's nothing we can do. You have not paid for our police services. We cannot dispatch officers even if there's a murderous psychopath banging on your door with a bloody knife in his hand."

      Like rescue services? "I'm sorry to hear that your house is on fire, sir, but we are a business not a charity. You should remember to pay your bills next time."

      And so on...

      People like Friedman and Hayek have proved

      You can't really prove anything in even hard sciences like physics. Saying that something has been proven in economics or sociology is just ridiculous. Like psychology, economics and sociology are not hard, predictive sciences (some would say that they're not science at all) in the same sense as physics or chemistry.

      If capitalism were a scientific theory, it would have been dropped a long time ago because it has no real predictive power and often contradicts with the real world observations.

      --
      The owls are not what they seem
    5. Re:Legitimate reason for bailout? by kubrick · · Score: 3, Interesting

      People like Friedman and Hayek have proved that markets are the ultimate source of truth, at least in this world.

      Economic 'proofs' aren't worth the paper they're written on, which is why the Nobel Prize for Economics is a joke. They may as well have one for psychology as well. :)

      The Nobel Peace Prize is ludicrous as well, but that's because it's given as an encouragement prize... maybe Arafat could give his back now, for example. Oh, and because a Peace prize funded by the estate of an explosives developer seems... erm... inconsistent at best.

      --
      deus does not exist but if he does
    6. Re:Legitimate reason for bailout? by httpamphibio.us · · Score: 2

      This is why we should seriously consider abolishing the government and leaving everything to the market forces.

      Couldn't this result in massive amounts of money being invested in social engineering to get us all to like the same things, meaning huge profits for companies?

      --
      sig.
    7. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      The logical end result of laissez faire capitalism is a monopoly in every market. Eventually the monopolies in each market will merge to form one uber-corporation that provides everything. At this point, the company has more power than the government itself, so basically you have either the embodiment of a corporate state or communism - if the ubercorp has all the power, it gets to determine who gets what.

    8. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0, Insightful
      I don't know about you, but I'd sure miss the powers granted to me by the fact that I live in a democracy right now, and the rights granted to me by my country's constitution.


      You are not speaking of the United States, are you? I don't know of any rights granted to me by the constitution. If anything, the people have ceded certain rights to the government.

    9. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      you were responding to was is called a troll.. the media, printed or otherwise is a powerful thing and people are actually paid to sit here and post bullshit on slashdot.. it helps form public opinion.. it's always worked this way, no big secret.. expect to see more of it as the youth come to the internet instead of being good amercians and doing the vulcan mind meld with that commie TV set

    10. Re:Legitimate reason for bailout? by benzapp · · Score: 0

      The primary reason most people advocate capitalism is ETHICAL, not scientific. It was liberals and their endless dreams of micromanaging the perfect society that gave birth to that study.

      Capitalism is by its nature free, it is how human beings behave when they are not acquiesing to the restrictive, violence backed will of the government. It is one man, exchanging value for value.

      The reason statist economic policies always fail is because they turn free humans into criminals, and pursues them as such. The problem is, under statist regimes, too many people are treated as criminals. The end result is a society full of people who scoff at law, and refuse to participate in a corrupt system of government.

      Capitalism will always win for this reason.

      As far as your other statements, many of us wish there WAS no police force. I am perfectly capable of defending myself, and have a license to carry a Ruger .38 to do so. Health care? You have only to go to a socialist country to see how that works. They won't throw you out in the gutter, but they will make you get in line, possibly for months to remedy serious ailments such as cancer. Even dialysis machines are hardly easily accessible.

      Socialism on paper provides these services, but in reality, it is plagued by shortages in materials, a dejected and lazy workforce, and a sense of entitlement that makes everyone not really want to work.

      You need to open your mind and realize that government is not the solution. You need to think about more than one possibility. Chanting to yourself over and over again "Government can solve my problems, government can solve my problems" is not going to work.

      --
      I don't read or respond to AC posts
    11. Re:Legitimate reason for bailout? by salemnic · · Score: 1

      Right, but that's why there are anti-trust laws. The government will in no way, shape, or form ever give up their ability (monopoly) to tax people, nor will they allow anyone else to usurp that ability. If a corporation shows they have too much power, they get stomped like everyone else.

      Cheers,

      S

    12. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      Actually, there is no Nobel Prize in economics. Alfred Nobel himself is believed to have had a deep disliking of economists (who can blame him?)
      The prize is actually named "The Swedish central bank award for economics in memory of Alfred Nobel". Yes, they get it at the same ceremony etc, but it's not a "true" Nobel Prize.

    13. Re:Legitimate reason for bailout? by lovebyte · · Score: 1

      Like law enforcement?
      In fact it was like this in Britain with the fire brigades. Each fire brigade was owned by an insurance company and they would fight a fire in your house only if your house was insure by the appropriate insurance company, while letting the fire burn your neighbour's house. This crazy system was later replaced by local/national governement controls.

      Another area where governements are necessary is pollution control. The private electricity industry in the US pollutes (proportionally) 6 times more than the (previoulsy or still) state owned electricity industry in Europe. This is a staggering number.

      --

      I'll do it for cheesy poofs.

    14. Re:Legitimate reason for bailout? by evbergen · · Score: 1

      Yes, and have given the rest to the corporations for free. Because nobody bothers to limit the political power that comes with their wealth, they are virtually in complete control of what once was a democracy.

      It's sad, considering the great way how it was started, but I'm glad that I was not speaking of the United States when I referred to my country.

      --
      All generalizations are false, including this one. (Mark Twain)
    15. Re:Legitimate reason for bailout? by evbergen · · Score: 1

      Exactly. See "A Brave New World", by Aldous Huxley.

      --
      All generalizations are false, including this one. (Mark Twain)
    16. Re:Legitimate reason for bailout? by nmg · · Score: 1

      There's nothing wrong with monopolies. The only time a monopoly becomes a problem is when the government supports it--see Standard Oil. If a monopoly got into the position it's in because it is simply by far the best provider of a product or service, there's nothing wrong with that. If the monopoly starts to become lazy, overcharge, etc., then competitors will arise and provide necessary pressure.

      A monopoly like Standard Oil could never happen under lassiez-faire capitalism, because the government can't make laws with respect to the economy.

    17. Re:Legitimate reason for bailout? by discipledaniel · · Score: 2, Insightful

      Like health care? "Sorry, sir. I know there's a gaping wound in your skull and that it hurts, but your credit is no good here. Please go away and die outside in the gutter with all the other poor people."

      It might not be that way with a head injury... but it's that way with AIDS patients in lots of cities. Not to mention those needing an organ donation. And lots of other cases since the HMO's became popular.

    18. Re:Legitimate reason for bailout? by October_30th · · Score: 5, Insightful
      and have a license to carry a Ruger .38 to do so.

      And I am happy to know that if I am burgled or mugged the criminal will rarely have a gun and that it's even rarer that the gun will be used. Regardless of whether the cops will catch the criminal, I can cope with losing some money or property.

      Health care? You have only to go to a socialist country to see how that works. They won't throw you out in the gutter, but they will make you get in line, possibly for months to remedy serious ailments such as cancer.

      Well, you could say I've been to a socialist country: I was born in a one with mostly state controlled economy. I am currently living abroad in a Northern European country which has had a large socialist party in the government for the last twenty decades. And you know what? The living standards are excellent in both countries. Working public transportation, no people living under the poverty line (check out the US and UK stats in the CIA worldbook for comparison), free public schooling, public libraries and goverment subsidized university level education to allow even the low wage blue collar workers' kids to have an advanced degree if they so choose. Crime is low because the social "safety net" will provide you with basic necessities even you go completely bankcrupt.

      As far as your medical care argument goes, you couldn't be more wrong when it comes to Northern Europe and Scandinavia (UK public health care is in real shambles, though). As I've pointed out in one of my recent posts, I've undergone several surgeries. The latest problem with the eye was diagnosed at a private clinic (you know, private clinics are allowed even if the public health care is run by the government!), I got a referral to the local hospital (state run university hospital) and was under the knife in a week. I spent another week in the ward and paid $200 for that - the $8000 operation itself was paid by the society. I pay the progressive 28% income tax gladly for a system like that that is accessible to all citizens regardless of their income (unlike insurances).

      You should know more about practical socialism before your spout nonsense like that. That's the kind of black and white reasoning that's not realistic. There is a middle ground between dog-eat-dog capitalism and total commitment to a government run economy, you know.

      --
      The owls are not what they seem
    19. Re:Legitimate reason for bailout? by aron_wallaker · · Score: 3, Insightful

      The end result is a society full of people who scoff at law, and refuse to participate in a corrupt system of government.

      ....and what was the voter turnout in the last US election ? You claim tht is a result of 'statist' economic policies, but really, is there any G8 country where the above statement is more applicable than the US ?

    20. Re:Legitimate reason for bailout? by October_30th · · Score: 1
      twenty decades

      Doh... that's two decades, of course.

      --
      The owls are not what they seem
    21. Re:Legitimate reason for bailout? by elvum · · Score: 5, Insightful

      The primary reason most people advocate capitalism is ETHICAL, not scientific. It was liberals and their endless dreams of micromanaging the perfect society that gave birth to that study.

      Indeed - you only have to look at the fine examples of capitalistic ethics provided recently by companies such as Enron, Worldcom, Global Crossing etc to realise how unnecessary government regulation in the free market is.

      As far as your other statements, many of us wish there WAS no police force. I am perfectly capable of defending myself, and have a license to carry a Ruger .38 to do so.

      Ah yes, and of course the police do nothing that giving everyone a gun wouldn't. It's like I've always said: you can't beat a heavily-armed lynch mob for a meticulous and professional criminal investigation leading to a fair and open trial.

      Health care? You have only to go to a socialist country to see how that works. They won't throw you out in the gutter, but they will make you get in line, possibly for months to remedy serious ailments such as cancer. Even dialysis machines are hardly easily accessible.

      And of course, limiting access to healthcare according to personal wealth or employability is such a fair way of arranging things, isn't it? After all, it's obviously entirely your own fault if you're poor or unemployed. I'm sure many of the /. readers left jobless by recent events in the tech industry will back me up on this one.

      Incidentally, which socialist countries are you thinking of? How about Cuba as a counter-example? The health service there is excellent, and completely free at the point of use.

    22. Re:Legitimate reason for bailout? by kubrick · · Score: 1

      However, when I look in my encyclopaedia, they get listed there next to the others. Still, as economists they definitely deserve an ersatz version. :)

      --
      deus does not exist but if he does
    23. Re:Legitimate reason for bailout? by dcavanaugh · · Score: 2

      Like health care?
      Like law enforcement?
      Like rescue services?


      LIKE PHONE SERVICE? "I'm sorry, but your account is past due -- no service for you. If you pay us all of the access charges, universal service charges, 911 charges, number portability charges, in addition to our wildy overpriced monthy rate, we'll be happy to restore your poor-quality analog line. Wonderful.

      We subsidize certain services (Police Fire, sometimes health care) as a matter of public policy. Why should we subsidize a nice-to-have-but-not-essential service if it wasn't a public service to begin with, especially if it impairs the adoption of better technology that would probably cost less than the crap we have now? Investors bought telco stocks and bonds, knowing that certain risks were involved, premature obsolescense being damn near the top of the list.

      For the most part, the US economic system does a wonderful job of purging itself of obsolete companies. The death of such companies creates opportunities for better competitors.

      We think nothing of closing a factory and moving it to Mexico or China in search of cheap labor; how is this any different? It's tragic for individuals in the short run, but in the long run, we're all better off when people migrate to more competitive industries. If the telcos have to die anyway, get it over with. If we grant European-style subsidies to every industry that has a problem, we'll have sky-high unemployement, and a reduced standard of living (like the Europeans do). Once everyone is getting a subsidy, the tax burden will choke off any possibility of economic growith.

      My retirement plan may be adversely impacted by the telcos demise, but it will have time to bounce back. Having subsidized telcos won't change my expectation that they will continue as a underperforming investment. Thanks, Uncle Sam, but no thanks.

    24. Re:Legitimate reason for bailout? by October_30th · · Score: 1
      I have absolutely no problems with the idea of dropping state subsidies from the likes of telcos, shipbuilding docks, steel industries and airplane manufacturers.

      I do, however, consider it a fundamental function of a state to provide reliable and affordable health care, education, transportation and welfare to all. Those who have plenty, should give to those who are in need; thus progressive taxation. These strategic functions should not be privatized. Competition would perhaps drive the costs down, but the lowest bidder isn't always the best option for critical services.

      --
      The owls are not what they seem
    25. Re:Legitimate reason for bailout? by 4of12 · · Score: 3, Offtopic

      I don't know of any rights granted to me by the constitution.

      Read it again.

      Compare the government of the United States with governments typical 250 years ago and with various contemporary governments in other parts of the world such as North Korea, Saudi Arabia, Myanmar, Iraq, Zimbabwe, etc.

      Most U.S. citizens are spoiled by not having direct first-hand experience with a big league oppressive regime. Take a 6 month bus tour of Central America and tell me when you get back that we aren't lucky to have the luxury to be actually arguing over something like a ballistics database.

      Personally, I rather enjoy the right to not be woke up in the middle of the night by jack-booted thugs displeased with my criticism of some leader in government.

      --
      "Provided by the management for your protection."
    26. Re:Legitimate reason for bailout? by lunenburg · · Score: 2
      I pay the progressive 28% income tax

      I wonder...I'm in the US, middle class. I pay about 30-ish% federal income tax, probably (ballpark, not pulling out the figures to look) 10% state income tax, social security tax, medicate tax, sales tax (6.5%), personal property taxes, etc., etc., etc.

      I would estimate that over half of my earned income goes back to the government in some way, shape, or form. Would over 50% taxation make the US a socialist nation?

    27. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      They won't throw you out in the gutter, but they will make you get in line, possibly for months to remedy serious ailments such as cancer.

      Where the hell have you been going to find such a mis-managed public health care system?
      I waited one week for non-emergency surgery to clear a blockage to one of my kidneys. Had it been an emergency (like an organ I don't have a backup of... :p), I would have been under the knife that same day.

      I am perfectly capable of defending myself, and have a license to carry a Ruger .38 to do so.

      You can't defend yourself when a criminal carries one too and realizes you've got one as well... so then shoots you in the back before rifling through the pockets on your slowly-cooling corpse.

      Socialism on paper provides these services, but in reality, it is plagued by shortages in materials, a dejected and lazy workforce, and a sense of entitlement that makes everyone not really want to work.

      This is precisely why successful countries you might call "socialist", aren't socialist at all. They, in fact, compromise.

      My country, for example...
      Welfare is a bad, self-destructive idea. Much better to put these people to work doing highway construction, cleanup, etc... Whatever they're capable of doing for their "work-fare" cheques. The work is hard enough and pays little enough that they WILL try to get a real job. We won't let them starve to death, but we aren't going to let them have a free ride either.

      Chanting to yourself over and over again "Government can solve my problems, government can solve my problems" is not going to work.

      Government can't solve all problems, but it can solve some. It's stupid to give government free reign, and it's just as stupid to abolish it entirely.

    28. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      Oh, one quick thing: My kidney's fine.
      The blockage wasn't going to kill the tissue, otherwise that would have been an emergency.

    29. Re:Legitimate reason for bailout? by October_30th · · Score: 1

      I've got 28% income/social security tax, 0.5% state church tax and I pay a 5% - 28% sales tax depending on what I'm buying (books cheap, electronics expensive). If you're drinking a lot or drive a car a lot you end up paying a lot more as there's an outrageous tax on alcohol and gasoline. Property in general is not taxed unless you own several expensive apartments, stock worth of hunderds of thousands of Euros or luxury yachts.

      --
      The owls are not what they seem
    30. Re:Legitimate reason for bailout? by canadian_right · · Score: 2
      But he is still right, the USA constitution, while it does have a "bill of rights" attached, the main purpose of the document is to list the FEW things the government is allowed to do, state many things it cannot do, and decaalre that its citizens can do as they please within this framework.

      --
      Anarchists never rule
    31. Re:Legitimate reason for bailout? by canadian_right · · Score: 2

      Not in Europe and Canada. Aid's victims have full access to healthcare, just like an accident victim, or a smoker. You must be thinking about backwards countries like the USA.

      --
      Anarchists never rule
    32. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      He was being clever. No rights are granted by the consitution, all rights are considered innate. The consititution sets what rights the goverment has the power to remove from the people.

    33. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      Just to play the devils advocate.

      I am gratefull I can freely dissent my goverment. But being thankfull dosen't lead to progress. One must take advantage of the very well constructed society we have in order to progress the state of that society.

      Just my 2cp

    34. Re:Legitimate reason for bailout? by Amazing+Quantum+Man · · Score: 1

      Of course, being Jewish, I'd be a bit ticked at paying a "state church tax".

      --
      Fascism starts when the efficiency of the government becomes more important than the rights of the people.
    35. Re:Legitimate reason for bailout? by ShooterNeo · · Score: 2

      BUT what if the monopoly, though resulting from free market pressure, cannot easily be competed with even though it is lazy? Microsoft is extremely difficult to compete with because 1. Software dev is very very time consuming and expensive. To get a truly "good" version of an application may take a decade of revisions and much money. Even if you DID have the money to make, say, a direct competitor to Office to really make it as good as what microsoft already has takes years. 2. Its a pain in the ass to use other operating systems for general purpose computing. Practically every program ever written runs under windows or via emulator. Yes, if all you need is say photoshop and similar tools then a mac is good and if you are into geeky stuff such as servers and databases Linux works. One of the real reasons OS X works better for some is that it is designed to appeal to artists, while Linux appeals to geeks. Both OSs provide a SPECIALIZED experience. This is the reason why the are better for SOME things. 3. Its a pain changing. Its a pain to switch software or operating system, its a pain to switch away from Office/Word when all your old documents are in a proprietary microsoft format. 4. The key features windows is missing do NOT really affect consumers that much. Yes, windows is unstable but if you turn the PC off after a few hours those memory leaks won't ever affect you. Yes, its insecure but most consumers have little information of importance stored on their PC, and recovering from a hacker just requires a recovery cd. Only when you get into servers do you need the absolute stability. Consumers and business buyers want more FEATURES, not better ones. I'd far rather have less gimmicky features that are half broken and instead have a few absolutely reliable ones, but the business managers who give microsoft money would rather buy the system with more goodies and long spec sheets. It seems like a better bargain to them, like that lawn mower with 5 different grass collection options (even if only 1 of the works) seems to you.

    36. Re:Legitimate reason for bailout? by October_30th · · Score: 1
      You wouldn't have to. Only protestant christians get inducted to the state church upon their birth if the parents so wish. Only the members of the church pay that tax.

      I could avoid the tax just by leaving the church, but to save just 0.5% in my taxes isn't worth the effort of filling that form. I consider it as an advance payment for my place in the graveyard, so that my family (or whomever's left behind) doesn't have to pay for it.

      --
      The owls are not what they seem
    37. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      Oh, and because a Peace prize funded by the estate of an explosives developer seems... erm... inconsistent at best.



      Actually, it makes perfect sense. Imagine you made a tool that turned out to be used as a weapon, which made you feel regretful, so you wanted to somehow make up for the abuse of your invention... so you make a peace prize.


    38. Re:Legitimate reason for bailout? by 4of12 · · Score: 2

      declare that its citizens can do as they please within this framework.

      Aye, there's the rub.

      My government is powerful, so I'm grateful for restrictions placed upon its use of that power.

      But my life is full of interactions with other non-governmental organizations, such as my employer, my telephone service provider, my credit card company, etc, that have a substantial impact on my life.

      They are free to require quite a lot of things of me that the government is not permitted to do.

      To be sure, if I don't agree with the terms of that interaction, I'm certainly "free" to go live a pauper's existence in a cabin in Montana. A rotten choice, though, to give up some privacy for material comfort.

      Please piss in this cup as part of the pre-employment screening. Video surveillance of the premises is done for your protection.

      --
      "Provided by the management for your protection."
    39. Re:Legitimate reason for bailout? by LtOcelot · · Score: 1

      As far as your medical care argument goes, you couldn't be more wrong when it comes to Northern Europe and Scandinavia (UK public health care is in real shambles, though)

      I visited Norway recently, and while I was there heard several horror stories in the media about medical care that was slow and incompetent. My (native) host also believed that the system had significant problems in that regard. Granted, this is a very small dataset; I'd be interested in seeing a more scientific take on the subject.

    40. Re:Legitimate reason for bailout? by October_30th · · Score: 1
      There are problems such as shortage of nurses and doctors refusing to go and work in small communities in the rural areas.

      The first one is a direct result from the necessary cuts in the public spending in the 1990s depression. Nurses get ridiculously small pay for the physically and mentally heavy work they do. Better pay could now be afforded but the conservative right wing section of the government would usually rather spend the available money on military hardware and law enforcement.

      Second problem is a social one and in my mind cannot be addressed by economical means.

      --
      The owls are not what they seem
    41. Re:Legitimate reason for bailout? by treat · · Score: 3, Insightful
      Personally, I rather enjoy the right to not be woke up in the middle of the night by jack-booted thugs displeased with my criticism of some leader in government.

      Which is why every day, I consider leaving the US.

    42. Re:Legitimate reason for bailout? by smithmc · · Score: 1


      It's like I've always said: you can't beat a heavily-armed lynch mob for a meticulous and professional criminal investigation leading to a fair and open trial.

      Is being lynched by a mob any worse than having a gang of cops shove a plunger up your ass, or being shot 42 times by the police on your way home from work?

      --
      Downmodding is the refuge of the weak. Don't downmod, make a better argument!
    43. Re:Legitimate reason for bailout? by Phanatic1a · · Score: 3, Insightful

      and the rights granted to me by my country's constitution.


      I'd take your civic-mindedness at a higher value if you understood that the Constitution doesn't grant rights.

      Pay particular attention to the 9th and 10th amendments.

    44. Re:Legitimate reason for bailout? by Phanatic1a · · Score: 4, Interesting

      Read it again.


      I did read it again. Apparently, I understood the words it contained. It doesn't grant rights; it recognizes them. The notion that rights exist only because a piece of paper says they do is rather horrifying. The Constitution exists to spell out the specific powers of the government, not the specific rights of the citizenry.

      Here, look

      Amendment 9: The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the people.

      Translation: Just because we mentioned a few rights doesn't mean others don't exist. They do, because this document isn't the source of rights.

      Amendment 10: The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.

      Translation: This document says what the government can do. If it doesn't say the Feds can do it, then the Feds can't do it. If it says the states can't do something, than the states can't do it. Other than that, let the people decide how they want their communities to be run.

      Yeesh. Before making pronouncements about what the Constitution says, maybe you should try understanding it .

    45. Re:Legitimate reason for bailout? by rnicey · · Score: 1

      Indeed - you only have to look at the fine examples of capitalistic ethics provided recently by companies such as Enron, Worldcom, Global Crossing etc to realise how unnecessary government regulation in the free market is.

      Please don't do that. That's fraud and theft nothing more.

      And of course, limiting access to healthcare according to personal wealth or employability is such a fair way of arranging things, isn't it? After all, it's obviously entirely your own fault if you're poor or unemployed.

      Whose fault is it then? Mine? Yours? The evil corporation? If you want my taxpaying help to send your poor sorry corpse to the doctor at least have some grace about it.

      Incidentally, which socialist countries are you thinking of? How about Cuba as a counter-example? The health service there is excellent, and completely free at the point of use.

      It might be free, if you don't count the fact that you're not. They are also usually out of many medicines so they don't have much to charge you for. Been there? Used it? Not with that opinion.

    46. Re:Legitimate reason for bailout? by Phanatic1a · · Score: 3, Interesting

      like I've always said: you can't beat a heavily-armed lynch mob for a meticulous and professional criminal investigation leading to a fair and open trial.


      Fair and open trial?

      You mean like the trial of in the UK in 1986 of Eric Butler, a 56-year old BP executive who was attacked in a London subway car? His assailants tried to strangle him and started beating his head against the door, and nobody came to his aid. He unsheathed an ornamental blade in his walking stick and stabbed one of his attackers in the stomach. He was tried and convicted of carrying an offensive weapon.

      Or like the English homeowner in 1994 who used a toy handgun to detain two burglars who had broken into his home while he called the police, only to be arrested upon their arrival for using an imitation gun to threaten or intimidate? Or elderly woman who in the following year fired a toy cap pistol to drive off a gang who were threatening her, only to be arrested for "putting someone in fear"?

      Or maybe you meant Tony Martin, who after having his house burgled 6 times in a village with no local police force used a shotgun to kill one burglar and wounded another, only to receive a life sentence for defending his life and property? And, of course, the wounded man who is now out of jail has received 5,000 pounds in legal assistance from the government in order to sue Martin.

      You know, putting aside the fact that an armed populace doesn't denote lynch mobs and vigilante justice, but rather the ability and willingness of a citizenry to defend itself against injustice, a heavily-armed American lynch mob certainly does sound like an entity that's more familiar with the concept of justice than most European governments I can think of.

    47. Re:Legitimate reason for bailout? by King+Babar · · Score: 2
      Economic 'proofs' aren't worth the paper they're written on, which is why the Nobel Prize for Economics is a joke. They may as well have one for psychology as well. :)

      I understand that you were responding to a comment that was surreal at best, but I could not really let this pass.

      The problem with proofs (economic or otherwise) is that they can only be used "in real life" when the axiomatic system and additional assumptions that underlie them are sufficiently close to reality. Hayek got a Nobel in Economics not for what a lot of Hayek fans think he did, but for a fairly general argument about the availability of relevant information to economic planners and their ability to set prices. It really is and was a useful result.

      Interestingly, this year's winners of the Nobel in Economics were pioneers in the use of actual experimental data to address issues that were crucial to economics, and one of them was a card-carrying psychologist. I doubt this will create any huge shift in how economists do most of what they do, but I think that it is important to note that there is and will be a more empirical kind of economics being done that might make the science a bit less "Ivory Tower" than it has been.

      Now, something that really worries me about the current line-up of Nobel Prizes is the extent to which the amount of actual science being done has "drifted" away from the set prize categories. I think this is particularly true for the "Medicine or Physiology" Prize, which is basically the only one anybody in medicine or any biological science can ever hope to win. To be completely frank about it, there are waaay more deserving potential recipients in those fields these days than can ever possibly win given the current rules. The pure science of Biology has absolutely exploded in importance in the last half century, and Medicine has made breath-taking progress as well, but the prizes were set up a century ago, so everybody has to queue up in these two vast fields. I can't help thinking that if Nobel were establishing the Prizes today, that this and similar problems would be fixed somehow. In the mean time, it's clear to me that while there are certainly some psychologists who would be deserving of a Nobel Prize (and Kahneman was among them), the field as a whole really has not yet reached the point where amazing progress is a yearly event, to the point where ignoring the field prize-wise is anything like the embarassing situation in the life sciences.

      --

      Babar

    48. Re:Legitimate reason for bailout? by evbergen · · Score: 1

      Contrary to popular American belief, The USA isn't the only country in the world, you know. It isn't even the only country in the world with a constitution.

      I live in the Netherlands. A constitutional democracy since 1848.

      --
      All generalizations are false, including this one. (Mark Twain)
    49. Re:Legitimate reason for bailout? by Pengo · · Score: 5, Insightful


      I just moved back to the states from the Uk, having lived there for 3 years and 1 year in Switzerland.

      I found the health care in switzerland to be excelent, even though it was private. You had to have healthcare, to be registered in a city.. which you had to be to legally rent an apartment. The taxes where I was living was about 14% total, not including taxes on things like Garbage (yes,a stamp had to be put on every bag you take out.. at 1 dollar per bag, it encourages you to recycle everything you can).

      My wife went to the doctor a few times, for this and that, and was quite happy with the modern clinic. The doctors seemed progressive and would offer medicine that was both herbal and western in nature. (No robotusin for a cold, but a herbal concoction you get at the pharmacy).

      Anyway, I loved the swiss method of handling things, and at 1% un-employement, and guarding their borders in a way that would make the queen of england prooud, they don't seem to have a lot of the problems that other EU countries have with the poor and destitute.

      Now, england is a complete flip-side. I have spent more hours sitting in a clinic waiting for the bloody doctor to just show up for work. (No appointment at my local surgery). When the doctor does show up, they seem to not give a damn about what the problem is. My wife sat waiting to be seen for almost 6 hours. No joke. A co-worker waited 7 months for status on a testicular lump that he was worried might be cancer. Yada yada.

      When we found out we where having a baby, our first, we decided to pack our stuff up and move back to the states. Pretty scarry stuff. I can't speak for the rest of the EU, I am sure that they are in better shape than Uk. I was watching a debate on Brittish TV, and there is a statistic that if you get stomach cancer, your chance of survival is 6%. In the US your chance of survival is 61%. Fricken nuts.

      And as for shoving people out the door. When we came back the US, we didn't have a job or much money. We immediately qualified for medicade and even after I got my new job, the state took care of the child birth and all the expenses including 6 months of birth control after the child birth for my wife and 3 follow up visits. Now we are back on private health care with my job, but to say that the hospital kicked me out is plain false.

      I don't think that my case is special. I don't think that a lot of people realize is that in the US, there is help if you really need it. I am not a bum out on the street, but when we moved back to the US.. we did need some help, and I am glad we had it.

      Private sector will always be better off than public, even in healthcare. What they need to do is put legislation in to keep the mall-practive law-suits under control and help keep the costs down so insurance isn't expensive for everyone. Look at the mortality rates across the board, you will be surprised what america's health care is churning out. It was a big enough difference for me to move across the world to have our baby.

      Cheers

    50. Re:Legitimate reason for bailout? by Charlton+Heston · · Score: 2

      They're trolling you on a technicality. When they say that the Constitution does not give them any rights, what they mean is that they have those rights because they are human, and the Constitution merely acknowleges that those rights exists and spells out the protection of the preexisting rights in black and white.

      --
      Get your stinking paws off me you damn dirty ape
    51. Re:Legitimate reason for bailout? by MAXOMENOS · · Score: 2

      What you should be asking isn't "how much of my money needs to go to taxes to make this a Socialist nation," but rather, "what am I getting for 50% of my income?" We probably *could* afford single-payer health care if we spent less on pork, questionable defense projects, etc. It's not a matter of how much money the government spends, as a matter of what we are spending it on.

    52. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      Not really, the government is simply less efficient than the private sector at providing a good or service. In the US we spend nearly 1/7th of our income on health related items and services. A large part of the supposed savings that come from a government run system is the fact that you cant sue the government, unlike now where you can sue your doctor or insurance company. Do you know what a doctor pays for malpractice insurance?

      Rising legal costs and the heavy federal regulation of healthcare (not to mention that the concept of health insurance, for non catastrophic events, runs counter to the market economy) Employer provided health insurance, as we know it now, was and invention of WWII era employers who needed a way to get around wage freezes. Since fringe benefits were not considered part of wages, employers could "increase" pay legally by adding worker benefits. People used to pay medical expenses out of pocket.
      Insurance with a very low deductable is fine for emergency things like car accidents, since no one expects to use it. But it makes more sense to "normal" expenses out of pocket.
      Tort reform and a change in the nature of health insurance would make the healthcare industry much more competitive than it is now.

    53. Re:Legitimate reason for bailout? by pben · · Score: 1

      The "Nobel prize for Economics" is a real Nobel prize. It was never in Nobel's will.

      If they had to fake a Nobel prize they sould have done one for all the sciences not in Nobel's will rather than Economics alone.

    54. Re:Legitimate reason for bailout? by 5KVGhost · · Score: 2

      I don't know of any rights granted to me by the constitution

      Well, he's right, but not in the way he intended. The Constituion doesn't grant rights to the people, it witholds powers from the government. That is and always was the intent when it was created and ratified. The Bill of Rights, enumerating basic human rights explictly, were included in the Constitution at the same time as a safeguard. This was done at the insistence of those framers who were afraid that people/govt would forget that original intent. It's probably contributed to some confusion over the years, but in retrospect it was probably a wise decision.

      As the saying goes, a government big enough to give you everything you want is a government big enough to take from you everything you have.

    55. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      i think i can sumarize that in four words
      "high barriers to entry"

    56. Re:Legitimate reason for bailout? by 3Bees · · Score: 1
      Most U.S. citizens are spoiled by not having direct first-hand experience with a big league oppressive regime. Take a 6 month bus tour of Central America and tell me when you get back that we aren't lucky to have the luxury to be actually arguing over something like a ballistics database.

      I one hundred percent agree with you. It bears repeating every time this point is brought up, however, that the insecurity in many other countries (especially S. and C. America) is a direct result of US foreign policy.

      That much is not arguable. What is debatable is to what degree our peace, prosperity and relative liberty has been purchased with the blood of our neighbors to the south.

      In a probably vain attempt to be on-topic, attempts at de-privatizing (and sometimes nationalizing) resources like telephones and such have been some of the justifications that we (as a citizen of the US I think it necesary to use the first person plural when referring to the government) have historically used to fund/incite revolutions in these very nations under discussion.

      --
      "I think we should tax people who stand in water! " - Mr. Gumby
    57. Re:Legitimate reason for bailout? by Andyrew2000 · · Score: 1

      > The key features windows is missing do NOT really affect consumers that much.

      If this is indeed true as you claim (it may not be, but you say it is), than you just explained why Microsoft as a monopoly among the average joe is in fact _not_ really doing much harm to the average joe.

      I would agree with the original poster in that the only truly harmful monopolies are government sponsored monopolies. I find that Windows XP is more than adequate for the tasks that I need to do during the day, so I use it. I prefer Phoenix over IE because I like its tabbed browsing and open development process. I am really impressed by Mac OS X, so the next computer I buy will be a Mac. Microsoft has not physically forced me from making these decisions. If Microsoft does not provide enough incentive for people to keep using Windows, than most people, assuming they are free and (for the most part) rational, will choose something else, and the monopoly will no longer have a monopoly

      >1. Software dev is very very time consuming and expensive.
      >3. Its a pain changing.

      These are all true statements about reality that do not change no matter how antitrust laws are enforced. If these facts contribute to Microsoft's monopoly, are you going hold Microsoft accountable for taking advantage of ... reality? Everyone else is subjected to that same reality. If it takes another person a lot of time and money to develop a piece of software, than it probably took Microsoft a lot of time and money to develop its software. Many people avoid buying the latest and greatest technology because the up-front cost of change is too great (even if in the end, they would be better off with the change). The same is true of software. Microsoft had to provide enough value in their products to get over that resistance to change and get most people to use them in the first place. Why shouldn't other companies face the same reality?

      Show me an example of a monopoly that developed in a truly free market that abuses its monopoly power to harm people, and I'll show you why it did not develop in a free market or why it does/can not abuse its monopoly power.

      -Andrew

    58. Re:Legitimate reason for bailout? by thomas.galvin · · Score: 2

      I do, however, consider it a fundamental function of a state to provide reliable and affordable health care, education, transportation and welfare to all. Those who have plenty, should give to those who are in need; thus progressive taxation.

      Joe Blow makes $1,000 a year, and pays 10% in taxes. That's $100.

      Sounds like the rich pay more under a flat tax, doesn't it?

    59. Re:Legitimate reason for bailout? by thomas.galvin · · Score: 2

      Doh. Here's the whole thing.

      Joe Blow makes $1,000 a year, and pays 10% in taxes. That's $100.

      John Doe makes $100,000 a year, and pays 10% in taxes. That's $10,000

      Sounds like the rich pay more under a flat tax, doesn't it?

    60. Re:Legitimate reason for bailout? by Boronx · · Score: 1

      You made the parent's point: America's medicine *is* socialized, albeit haphazardly. Do we want to release it into the free market?

      If you look at the amount of money involved, the problem is not malpractice suits. It's health insurance that incourages both the patient and the doctor to over do it. Why don't people buy generic drugs? Because their insurance is paying for it. Why do OB/GYN run a test for Downs Syndrome in utero? There's nothing they can do about it, (except abortion). They run the test because it's a few extra bucks. The mother to be lets them because it's not her money.

      Another problem with health costs? Everyone is guaranteed treatment...but only in an emergency. These emergencies are expensive and the cost is picked up buy those who can afford it. Much of the cost could be alleviated by guaranteeing cheaper preventive medicine to everyone.

    61. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      I'm glad you've chosen the fairest and least extraordinary examples to illustrate your point. Out of curiousity, are you European or American?

    62. Re:Legitimate reason for bailout? by Phanatic1a · · Score: 2

      I'm glad you've chosen the fairest and least extraordinary examples to illustrate your point.

      Much like the reference to lynch mobs as a fair and least extraordinary example of a populace capable of self-defense?

      Out of curiousity, are you European or American?

      I might answer that if you explain how the validity of an argument is affected by the nationality of the one making it.

    63. Re:Legitimate reason for bailout? by elvum · · Score: 1

      0.5% of $40,000 a year (not that I know what you earn!) comes out as $8,000 over a 40 year career. Surely that's quite a lot of money for a hole in the ground?

    64. Re:Legitimate reason for bailout? by forkboy · · Score: 2

      Considering the average funeral costs about $15,000, I'd say that's a pretty good break.

      --
      This message brought to you by the Council of People Who Are Sick of Seeing More People.
    65. Re:Legitimate reason for bailout? by kubrick · · Score: 2

      What I meant by that snide crack is that economics pretends to be a science in the same way that psychology has in the past, when it's pretty obvious that neither are. (I guess I was also implicitly comparing the American capacity for deification of practitioners in both fields during the last century... despite the fact that they only offer incomplete, generic and often wildly wrong models for dealing with their problem space.)

      That's not to say that either discipline hasn't been useful, especially in the context of determining broad cultural and societal trends. There are economists and psychologists whose work I find quite interesting and relevant... but I still think economics should be considered as a branch of psychology or sociology. :)

      Yeah, the Nobel Prize structure is pretty archaic, but it really only has the legitimacy that people give it -- I know that most of the people I talk to find it somewhat irrelevant to the real work being done.

      --
      deus does not exist but if he does
    66. Re:Legitimate reason for bailout? by kubrick · · Score: 2

      "Here, have some blood money."

      --
      deus does not exist but if he does
    67. Re:Legitimate reason for bailout? by King+Babar · · Score: 2
      What I meant by that snide crack is that economics pretends to be a science in the same way that psychology has in the past, when it's pretty obvious that neither are.

      Speak for yourself, Mr. Snide. Both are sciences, albeit really difficult ones to do good work in. But the best work in Psychology at least is stuff that can be envied by any experimental scientist.

      --

      Babar

    68. Re:Legitimate reason for bailout? by kubrick · · Score: 2

      science
      n.

      1.
      1. The observation, identification, description, experimental investigation, and theoretical explanation of phenomena.
      2. Such activities restricted to a class of natural phenomena.
      3. Such activities applied to an object of inquiry or study.
      2. Methodological activity, discipline, or study: I've got packing a suitcase down to a science.
      3. An activity that appears to require study and method: the science of purchasing.
      4. Knowledge, especially that gained through experience.
      5. Science Christian Science.


      I'd say it qualifies as 2, 3 & 4 but not as 1, and that any 'science' that doesn't fulfil all of 1 isn't one. You may disagree. :)

      --
      deus does not exist but if he does
    69. Re:Legitimate reason for bailout? by Reziac · · Score: 2

      Actually, "Pay your bills or we won't service you" is EXACTLY how some privately operated fire departments work. They're essentially subscription services paid for by their customer base, because they get little or no gov't funding (and they're also the only fire dept. available). Even if the crew are volunteers, someone's still got to pay for that pumper truck and the diesel it drinks. Anyway it's a fairly common situation in rural Montana, don't know about elsewhere.

      --
      ~REZ~ #43301. Who'd fake being me anyway?
    70. Re:Legitimate reason for bailout? by Anonymous Coward · · Score: 0

      50% of all taxes paid in the US are paid by 5% of the people.

  2. Re:Privatize them! by Anonymous Coward · · Score: 0
    Privatize everything. It works.

    Like the UK railroads these days?

  3. 'Little' people would suffer the most by scrod98 · · Score: 4, Interesting
    The companies that go under may be the one's currently providing the 'last mile': services for millions of americans. You cannot abandon the current ability to provide reliable communication service at a reasonable price to many rural and even suburban areas. Many of these people cannot afford cell phones (if available) or obtain any other alternative to land-line. I'm sure it is not cost-effective to solely serve them, while allowing major custoemrs to go elsewhere.

    This is where the government bailout would help, by allowing access to areas that would be under-served, and allow time for solutions to that problem.

    Jeez, pretty hefty rant this early on a Tuesday. Must be fear of sniper-related traffic in DC.

    --
    LETS DECOMPOSE & ENJOY ASSEMBLING
    1. Re:'Little' people would suffer the most by albanac · · Score: 5, Insightful
      The companies that go under may be the one's currently providing the 'last mile': services for millions of americans.

      Note that the companies will go under. No-one will go around digging up the fibre and copper which are already under ground. Companies that fail will have their assets bought by someone who is not failing. Control of the last-mile will move. The companies are trying to avoid corporate failure. The reason there is an argument, at a philosophical level, is not that some companies will die, but that control of the last-mile will move to companies which have a different paradigm entirely. That is what the corporates are trying to make the government fear, not the actual economics of bankruptcy for certain specific players.

      ~cHris
    2. Re:'Little' people would suffer the most by Marulq · · Score: 1

      Is it not simpler for the government to subsidise access in those remote areas, so they become competitive as well?

    3. Re:'Little' people would suffer the most by MrWa · · Score: 2
      The companies that go under may be the one's currently providing the 'last mile': services for millions of americans...This is where the government bailout would help

      The "last mile" is still going to be there. As Albanac said, no one is going to come dig up the cables.

      The problem is the companies that end up getting handouts are the ones that don't need it - those companies are the ones that should go out of business because they are inefficient, operating on an obsolete business model, or just corrupt. A quick look at the airline industry - and their reliance on the hub-and-spoke model of wasting money - should show how wonderful these bailouts truly are.

      We shouldn't cry for the corporations that can't adapt, overspent based on faulty predictions, or went under because of fraud. That would serve no one, in the end.

      The best way to help the "little" people is to let those businesses go under and allow others, with better ideas, business models, etc. use the infrastructure to provide what the "little" people need. The short term pain of some businesses going away and some bad debts being written off is nothing in comparision to the benefits. (who typically lays the power lines and water pipes? who typically profits from them the most in the end?)

    4. Re:'Little' people would suffer the most by MrWa · · Score: 2
      I agree with this idea, somewhat. Once something becomes so vital to society it probably should be controlled by the government more - that is why we have it (the government) there, for the most part. Electricity, phone (for a long time), police, firemen, military, etc.

      The problem, in this case, is that something that is so vital also changes so rapidly that the government couldn't keep up or even maintain it. This is a problem. Like when Microsoft hinted at taking their toys away if they lost the court case - how do you even control something this vital? Should the government totally take it over? Should the government stay out of the marketplace complete (as these companies would have wanted five years ago) and only come in to offer bailouts when those in the marketplace can't run themselves profitably?

    5. Re:'Little' people would suffer the most by jhliptak · · Score: 1
      ...but that control of the last-mile will move to companies which have a different paradigm entirely.

      Yes, I see a new paradigm. I'm not going to let competitors use my assets to compete against me. I'm not going to provide any services that are not cost effective. I'm not going to subsidize residential service by higher business line rates.

      If you want economics to rule the last mile, don't be suprised by what you get.

      This new paradigm will have to deal with the following:

      Who is the provider of last resort? Who subsidizes those costomers?

      How do you un-do the current business subsidization of residential service?

      At what point do you insist that new capital investment be made?

      The big bad greedy phone companies are playing the complex rates and regulation game that the people/government gave them. If you plan to replace them with little greedy phone companies with different rules, I don't think things will have improved.

    6. Re:'Little' people would suffer the most by albanac · · Score: 1

      A certain amount of confusion about what I was actually saying seems to have entered your post, but there are a couple of points to which I can sensibly respond:

      How do you un-do the current business subsidization of residential service?

      ... Why would you want to?

      At what point do you insist that new capital investment be made?

      ... Why should you need to? (an example: who 'insisted' that AT&T spent capital in the 50s? No-one needed to. AT&T needed new equipment to keep their business running, so they bought it.

      If you plan to replace them with little greedy phone companies with different rules, I don't think things will have improved.

      I don't recall saying I planned anything. I recall saying that the infrastructure which was built by one group of companies (which were divergent elements of an earlier stat-sponsored monopoly) would not be removed from existance or service were the company that dug the holes and pulled the wires to go bust. They would still be there. They would simply be owned by a different company. That was my point, in it's entirity.

      ~cHris
  4. Re:Privatize them! by StrawberryFrog · · Score: 4, Insightful

    Nahh. Privatize everything. It works.

    You are trolling, aren't you. In case you don't know about it, go look up Railtrack - the UK privatised rail company that recently declared bankrupcy, leaving the UK govt with the options of a bailout of closing down the rail network. They chose the bailout. The sucessor company (Network rail) is a not-for-profit co.

    --

    My Karma: ran over your Dogma
    StrawberryFrog

  5. Moore's Law & Metcalfe's Law defined by slashd'oh · · Score: 5, Informative
    • Moore's Law: "The observation made in 1965 by Gordon Moore, co-founder of Intel, that the number of transistors per square inch on integrated circuits had doubled every year since the integrated circuit was invented. Moore predicted that this trend would continue for the foreseeable future. In subsequent years, the pace slowed down a bit, but data density has doubled approximately every 18 months, and this is the current definition of Moore's Law, which Moore himself has blessed. Most experts, including Moore himself, expect Moore's Law to hold for at least another two decades." (read source)

    • Metcalfe's Law: "A theory argued by Robert Metcalfe, inventor of Ethernet, which states that the power of a network increases by the square of the number of nodes connected to it. For example, where X is the number of nodes, the power of the network is X squared. Metcalfe observed that new technologies are valuable only when large numbers of people use them -- consider how less valuable the telephone would be if only two people in the world used them. The network becomes more valuable the more nodes that are connected to it." (source)
    1. Re:Moore's Law & Metcalfe's Law defined by Anonymous Coward · · Score: 0

      Too bad no one seems to really know what Moore's law is. Slashdot approximations of Moore's law include:

      Every 18 months [computer component]s get cheaper
      Every 18 months [computer component]s get faster
      Every 18 months computers get bigger
      Every 5 days Timothy posts a story he already posted

  6. Economics by Bocaj · · Score: 5, Interesting

    IANAE, but what happens when major telcos start to go under? As they struggle to maintain profit margins, how despirate will they get? Can replacement technologies and companies absorb the workforce that will be laid off? How often will this type of thing happen? Think about it, the current plain old telephone system is no good unless it is ubiquitous. That's why the telcos are in trouble. They needed to put entire systems in place before they where useful. Fiber is fantastic except when it comes down to two little wires in the last mile. In for a penny, in for a pound. Telecommunications systems need to be complete or not at all. How do we get the technoloy in place before it's obsolete?

    1. Re:Economics by swb · · Score: 2

      IANAE, but what happens when major telcos start to go under?

      As you point out, a telco asset is only valuable if it is complete, but if it is complete it is a very valuable asset.

      The remaining telcos will buy the bankrupt assets for pennies on the dollar, gaining substantial marketshare and capacity. Since fewer players control more capacity, they can idle the existing capacity and raise prices (or not keep cutting them) to recover from their debt load. They also eliminate future debt by being able to bring on the idle capacity with drastically lower capital expansion costs.

      "Bailouts" happen for a few reasons. (1) The misguided populist notion that we won't have phone service, (2) the egos and political capital invested in the current business, and (3) the demands of shareholders, bondholders and other investors who do not want to see their investments become essentially free investment in other businesses.

    2. Re:Economics by gmhowell · · Score: 2

      Bankruptcy law in the US would allow companies to fail gracefully. If one of the Baby Bells were to declar bankruptcy (which is complete and utter shit. Sorry, it ain't gonna happen) then they would either be liquidated or their debts reorganized. The latter is fairly obvious. The more interesting case is the former. Someone (a collection of RBOC's, Microsoft, co-ops?) would buy out whatever the Baby Bell had. Probably at auction, and probably cheap. Whoever backed the bonds is fucked, but the customer probably isn't.

      I wonder about the future of land lines for residential customers. I'm sorely tempted to drop mine in favor of cell service. Well, I'd keep just enough service to get 911 dial out.

      I agree that entire systems needed to be in place for the telcos to be useful. However, I disagree that this is the cause of their current woes. The vast majority of these systems were in place decades ago. Everything lately has been upgrades. The upgrades or replacements would have occured in any event as equipment broke down.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
  7. Short Term Impact by skroz · · Score: 5, Interesting

    It seems to me that the long term goal of replacing outdated infrastructure and ancient business models may be reached sooner by this "fail fast" proposal, but the chaos produced would be devastating to customers. Service outages, price fluctuations, and provider changes could cripple customers large and small. The industry that might come out of such a proposal may be worse off for the experience.

    --
    -- Minds are like parachutes... they work best when open.
  8. Typical corporate behaviour... by Anonymous Coward · · Score: 1, Insightful

    Capitalism one day, Socialism the next, whatever keeps the dollars rolling in, that's what they'll ask for.

    1. Re:Typical corporate behaviour... by Tuzy2k · · Score: 0

      Hells yes! Straight from the annuals of Adam Smith and John Locke :)

  9. Think about it by Anonymous Coward · · Score: 0

    How many of us have stakes in these "fail fast" companies via pension funds?

  10. Re:Privatize them! by RobinH · · Score: 5, Insightful

    Government subsidies are bad.

    Riiiight. The streets around your house will look awful funny when only 70% of your neighbours pay their road construction bills. 30% of your street will be dirt road, the rest paved?

    I suppose education should be completely privatized too. That way, the only chance a child from a lower economic class has to make something of themselves will be torn away because their parents can only afford to choose two of these three alternatives: 1) feed them 2) clothe them 3) educate them.

    I suppose, by your logic, that I should have to pay for my own dedicated wiring from my house to the electricity provider of my choice, right? Would we really have, like, 99% of all houses connected to the electical grid (therefore, accelerating the growth of other technologies like electrical appliances) if distribution was privatized? Would there be any incentive to have a step down station in bumsville, nowhere?

    Markets work, u know?

    Markets work with quite a bit of help. Do you think they'd work if we didn't have laws regulating fraud, disclosure, etc.?

    --
    "I have never let my schooling interfere with my education." - Mark Twain
  11. This 'Open' letter by Anonymous Coward · · Score: 3, Interesting

    Seems like a self-serving whine by people with a vested interest in the 'failure' of older technology. No matter how carefully worded, I smell money in someone's pockets.

    We need to remember that the internet was designed to be able to communicate with defense authorities during times of national strife, as in nuclear war. It shines because it is nearly impossible to kill all the telco communications capabilities at once. Old, yet trusty technology. Just look what YOU are doing with this technology today!

  12. Where are the Internet pioneers by Florian+Weimer · · Score: 3, Insightful

    signed by internet [...] pioneers

    Who are they? Is it reasonable to call someone an "Internet pioneer" even if he or she hasn't (co-)authored an RFC carrying a three-digit number?

    1. Re:Where are the Internet pioneers by JaredOfEuropa · · Score: 0, Flamebait

      Who? Al Gore of course, after all he invented the damn thing!

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    2. Re:Where are the Internet pioneers by boomka · · Score: 1

      Who are they?

      these guys got two-digit Slashdot user ids!

      --
      Human history becomes more and more a race between education and catastrophe.
      H.G. Wells, "The Outline of History"
  13. Bailout by Omkar · · Score: 5, Interesting

    The recent spate of government bailouts (airline, steel, etc.) reminds me of the S&L scandal in the 80's. I believe Japan had a similar problem as well. Instead of letting some 'creative destruction' take place, as our govt. did, the Japanese bailed the incompetent banks out.

    Result: their economy has been stagnant for a decade.

    Let's hope the govt. has learned from their mistakes.

    1. Re:Bailout by orim · · Score: 1

      Yeah, right. While I don't think we should be bailing anyone out, one has to wonder what will happen to all the money invested in those companies, if they're allowed to go under. Your average stockholder (401Ks anyone?) will keep losing money, while only the people in know (i.e. insider trading, and your Wall Street types) will sell before a bankrupcy happens.
      I'm beginning to think this whole "stock market" is a bad idea...

      --
      "If you could only see what I've seen with your eyes..." - Roy Batty
    2. Re:Bailout by ShooterNeo · · Score: 2

      That's odd....I don't remember our economy tanking right after the S&L bailout. I'm not saying it was necessarily a positive thing for us or the japanese to do it...just that saying it was the "cause" of the current Japanese economic troubles would be the epitome of ignorance.

  14. Traditional telcos aren't going bust by Cato · · Score: 5, Interesting

    If you look at all the telcos of various types, it is the incumbents (RBOCs, Baby Bells, ILECs, PTTs...) who are surviving quite well and even prospering. They didn't get sucked into the IP-based boom/bust as much as others, and more importantly their legacy phone switches make significant money through well-established per-minute billing. Wireless operators who charge per-minute are also doing OK, although 3G will probably kill some of them off.

    It's precisely the next-gen telcos (CLECs, ISPs, xSPs) who invested in the new IP technology that ran into the boom/bust and are struggling or going bust. WorldCom is something of a special case - it had a lot of legacy technology that should have tided it over, but the accounting shenanigans were too much to survive.

    This doesn't mean that IP-based networks are a passing fad, though - all that's happened is that the pioneers have gone through the normal bleeding-edge live/die cycle. Some of them have made it, some have gone bust, and all the old-line telcos have adopted the same technologies.

    I agree that failing telcos should normally not be propped up - as long as someone can step in to maintain services by buying up their assets, particularly local loops that are hard to recreate, the customer shouldn't notice that much interruption. My problem is with the analysis that the legacy technology is why telcos are going bust.

    1. Re:Traditional telcos aren't going bust by bourne · · Score: 2

      If you look at all the telcos of various types, it is the incumbents (RBOCs, Baby Bells, ILECs, PTTs...) who are surviving quite well and even prospering.... It's precisely the next-gen telcos (CLECs, ISPs, xSPs) who invested in the new IP technology that ran into the boom/bust and are struggling or going bust.

      You missed a few details - let's rephrase that:

      "If you look at all the telcos of various types, it is the companies that control the physical infrastructure that both they and their competitors need (RBOCs, Baby Bells, ILECs, PTTs...) who are surviving quite well and even prospering.... It's precisely the companies who depend on the physical infrastructure that is controlled by their competitors (CLECs, ISPs, xSPs) who invested in the new IP technology that runs over the same copper wires that the incumbents have control over that ran into the boom/bust and are struggling or going bust."

      The only thing "new IP technology" has to do with it is that the Incumbents don't like the idea of someone selling faster service over the same copper for a lower price... notice how the ILECs hunkered over their miserably handled ISDN options until the threat of competition forced them to move on to faster, cheaper, better technology. And oddly enough, once they moved, they managed to grow their xSL business while all the non-Incumbent competitors got trashed by ruinous turnaround on copper orders.

      Coincidence? Or Conspiracy? You be the judge...

    2. Re:Traditional telcos aren't going bust by Cato · · Score: 2

      There is some truth in what you say - certainly local loop ownership is a big reason why ILECs survived and CLECs didn't, particularly in the xDSL market where ILECs had a natural tendency to be slow and incompetent in integrating their provisioning processes with the CLEC (and benefited from not integrating well).

      However, that doesn't explain why AT&T, Sprint and other long-distance telcos in the US, who don't have local loops, are doing OK (despite shrinking long-distance revenues) compared to many CLECs that offered (some of) its IP-based services. The answer IMO is that they have enough customers, revenues and sheer size to survive a downturn, and a diverse enough business that ISP-type services can become less profitable without sinking the company.

      So I don't buy the conspiracy theory except in the local loop / xDSL arena. When downturns hit, it is usually the largest and most diverse companies that survive, in any industry.

    3. Re:Traditional telcos aren't going bust by bourne · · Score: 2

      However, that doesn't explain why AT&T, Sprint and other long-distance telcos in the US, who don't have local loops, are doing OK (despite shrinking long-distance revenues) compared to many CLECs that offered (some of) its IP-based services.

      Well, I'm not sure why that needs to be explained - it is an apples and oranges comparison. The LD telcos have a larger user base, have been in business for many years before the boom, and provide mostly telco-only at the consumer level (AT&T is the only one I know of playing in broadband, and that's only through cable not over telecom infrastructure).

      The CLECS played heavily to the broadband data marketplace for the last mile, and were consumers of the data backbones provided by the large telco carriers. The broadband data marketplace is much smaller; not only are less people interested in xDSL than phone service, the distance limitations put the kabosh on an enormous number of potential subscribers.

      The two segments are at opposite ends of the spectrum. Established, broad consumer base and large B2B businesses versus new companies rolling out new technology to a limited consumer base. How could the new technology be to blame? I haven't seen many stories from people saying "Yeah, I got DSL, but I decided that 56k was all I need so I got rid of it." The biggest problem I hear about the technology is the distance limitations and the sheer volume of crappy wiring that is out there (working fine for POTS, decent for ISDN, poorly for xDSL - and tell me the ILECs don't like it that way...)

      When downturns hit, it is usually the largest and most diverse companies that survive, in any industry.

      On that, I agree totally. If xDSL had been introduced and pushed by the ILECs instead of the CLECs, I'm sure that the market for it would be rosier (and more expensive) today. Since it cut into their T1 cash cow, though, they only moved when the CLECs became a threat.

      So I don't buy the conspiracy theory

      Well, that's my weak spot. When it comes to ILECs, I'm happy to entertain pretty much any conspiracy theory ;)

  15. Security of Internet-based phone system by MichaelCrawford · · Score: 5, Insightful
    There's a concern I have that I think I first read in one of Bruce Schneier's crypto-gram newsletters. Ah, here it is:

    The problem is that if the telephone system becomes based on the Internet, there will be catastrophic security breaches in our telephone system.

    This is because every node on the internet can have packets directed at it by any other node. That's the whole point of end-to-end. But that means any joker with a PC can log in to his ISP and start up h4x0r scr1pt5 to start cracking phone switches.

    With the current phone system, control signaling is out of band - end users can only control the phones at each end of the connection, and cannot control the functioning of the switches in between. You can command the switches by dialing a number, but you can only route your call this way, not control the basic functioning of the switch.

    To a large extent security can be maintained by keeping the telco equipment in securely locked buildings.

    But the protocols used for the phone system apparently aren't designed with security in mind, so that when they are adapted to the Internet, they become gaping security holes.

    Potentially someone could do some clever work and bring down a whole nation's phone system, if it were on the Internet.

    The convergence of the telephone system and the Internet has already been going on for a while. It is quite common for long-distance calls to be routed over the Internet, so you get phone-to-phone VOIP without the user being aware of it.

    It is also common for telcos to be ISPs, and they just use the same fiber for voice and data. It's more economical to use the same data formats and protocols for voice as well as data, so they transmit all the voice calls with the Internet Protocol.

    --
    Request your free CD of my piano music.
    1. Re:Security of Internet-based phone system by LemonYellow · · Score: 1

      IIRC, this was done some time ago with the current telephone network. Something to do with convincing one exchange that it had a fault, and that took down all of the surrounding exchanges.

    2. Re:Security of Internet-based phone system by Anonymous Coward · · Score: 0

      any idiot engineer that puts a critical system onto a publically accessable network (internet) needs to be ran over with a truck several times...

      only the absolute stupidest engineer or person would do that.

      it doesn't need to be on the internet, and only a complete moron would give it access from the internet.

      dial up modems and privatenet are 100% fine for any of these critical systems... and anyone saying otherwise is a complete and utter moron.

    3. Re:Security of Internet-based phone system by Lumpy · · Score: 3, Interesting

      Actually you are right..

      Dial up modems can have a huge amount of security (dial back and wierd tones pairs come to mind.. hey we use both here!) I can make a dial up system that will keep out any cracker that has even good skills. and this isn't even the computer asking for the password... they cant even get past the modem it's self unless they social engineer enough information to hijack the phone numbers the modem automatically dials-back to. (Only 3 of them.) and then the cracker needs to modify his modem to use a different set of signalling tones.. either by hardware hacking or by social engineering me directly.

      or the cracker can tap our private t1's and fiber connections to try and break in...

      but only an idiot would put a critical or important system on the internet.... the worries in the parent post are unfounded unless the telcos are staffed with idiots for engineers.

      --
      Do not look at laser with remaining good eye.
    4. Re:Security of Internet-based phone system by MichaelCrawford · · Score: 0
      Um, my understanding is that they're already putting critical systems on the Internet. It's a done deal. However, it is not as widespread as it would probably become if the older businesses are allowed to fail.

      --
      Request your free CD of my piano music.
    5. Re:Security of Internet-based phone system by Anonymous Coward · · Score: 0

      so the telcos are staffed with morons and idiots...

      why doesn't this suprise me?

      only a complete moron would put a critical system on a public network.. and you can quote me on that.

    6. Re:Security of Internet-based phone system by silas_moeckel · · Score: 1

      Well having many a Telco engineer work for me they are on average not the britest bunch they love technology they are comfertable with (ATM that bloated POS) now at the same time they distrust IP networks to no end the local telco has enough firewalls it's a big onion of layers unfortunatly they dont understand how to lock them down they only serve to stop the simple things and make it hard on users.

      Bailing out telcos dosent make much sence the copper dosent go away somebody generaly buys up the contracts and the wire serving an existing install generaly is profitable it's getting those installs in there (and how many telcos were offering free hookups for a 20 year contract to dot coms I know a few did to the ones I was involved with)

      --
      No sir I dont like it.
    7. Re:Security of Internet-based phone system by ShooterNeo · · Score: 3, Informative

      Just because the phone system uses cheaper off the shelf routers and the TCP/IP protocol does NOT mean it will be particularly vulnerable to hacking. You are confusing the successful efforts of script kiddies to hack cheaply set up servers running commercial OSes with an entirely different problem. These routers, which are rarely hacked, use flash firmware and a standard hardware configuration. They are usually not remotely reprogrammable, and use extremely stable code that is short on features, long on reliability (the opposite of commercial OSes). Hacks of these backbone beats are EXTREMELY RARE...most failures are due to operator error.

      No, I don't work for CISCO or the other companies, just explaing what they sell and why it works.

      Who says these routers will be part of the internet, anyway. Its doubtful you'd be able to send packets to one. Hacking REAL SYSTEMS is a lot more difficult than the ignorant public believes it to be, in fact I'd say many true embedded systems cannot be hacked. (if you can't reprogram it because it has no writable memory, how exactly are you going to subvert it?)

    8. Re:Security of Internet-based phone system by treat · · Score: 2
      Dial up modems can have a huge amount of security (dial back and wierd tones pairs come to mind.. hey we use both here!)

      These are only secure if you trust the security of the telephone network. Why do you trust the security of your network to unknown third parties?

  16. Let the Baby Bells compete by anonymousman77 · · Score: 4, Interesting

    Why are the Bells forced to lease out their DSL connectivity to other companies at below cost? Does this really spur investment? The reason that most people do not have access to DSL is that the Bells will NOT invest until they are allowed to compete against cable companies DIRECTLY

    Do cable companies have to let the telcos use their cable at below cost?

    What will happen to the parasites (CLECs) when the hosts (Bells) die?

    Deregulate the Bells and let true competition take hold. You will not regret it, Mr. Powell

    1. Re:Let the Baby Bells compete by Zathrus · · Score: 3, Insightful

      To clarify what anonymousman77 said - the RBOCs are currently required to lease out DSL coloc's for the amount it costs them to deliver service.

      Which sounds all fine and good, except that they're not allowed to charge for infrastructure costs. How much did it cost to upgrade the CO to DSL? To restructure wiring? To perform service upgrades? Doesn't matter, can't charge for it.

      The flip side to this is that traditionally the RBOCs have used exactly these costs (and generally inflated them) to prevent competition. To put it bluntly - they fucked other companies for a decade and now they're being punished for it.

      Of course, this doesn't help anyone who can't get DSL because it doesn't make economic sense for the RBOC to upgrade. Or the various telecomm supply companies who have seen their contracts evaporate because the RBOCs aren't willing to invest in infrastructure at this point.

    2. Re:Let the Baby Bells compete by stonewolf · · Score: 2

      "Why are the Bells forced to lease out their DSL connectivity to other companies at below cost? Does this really spur investment? The reason that most people do not have access to DSL is that the Bells will NOT invest until they are allowed to compete against cable companies DIRECTLY"

      The real question is why do YOU believe anything the Baby Bells say? They are not being required to lease lines below their costs. Never have been never will. The original rates were set so the Bells would make a profit. The Bells then cooked the accounting to make it look like they were losing money.

      The Bells complain about their unfair treatment under the telecom act of 1996. Bull. They wrote the telecom act of 1996 and they agreed to everything in it before it was passed. The telecom act of 1996 was referred to in the press as the Telecom Welfare Act of 1996. It has many clauses in it that make it nearly impossible for anyone to compete with the Bells on traditional telephone and gives the Bells the opportunity to make huge profits. BUT, the world changed, the Internet happened, and those clauses started to hurt the Bells, so they started crying about it and lying about it and went back on the deal they negotiated.

      Go back and look at what was being said in the middle '90s if you don't believe me.

      Four years ago I had the experience of trying to explain Moore's law to a Bell executive. He was amazed by it. He was in charge of R&D for SBC and had never heard of Moore's law. He later got fired for destroying Prodigy.

      Stonewolf

    3. Re:Let the Baby Bells compete by gmhowell · · Score: 2

      The RBOCs have good accountants. It's very easy to make the 'cost for delivery' include upgrade costs. I'll also say that I have no idea who says if the 'cost for delivery' is legit. It's entirely possible that the local service commision can say to the baby bells "Bullshit, it doesn't cost that much".

      Which, if I had read the next paragraph, you as much as admit:)

      What about when the RBOC HAS upgraded, but still won't give you DSL? I had Northpoint at home. Had really good speed (just a hair less than my cable modem now). They went under. Verizon would not provide DSL at any speed at any cost. At the time, Comcast had not yet upgraded us for cable modem usage. Verizon could have switched those of us on Northpoint for just a few dollars (and let us keep our existing equipment) and been entrenched by the time Comcast showed up to the party.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    4. Re:Let the Baby Bells compete by Anonymous Coward · · Score: 0

      Thats the whole point, who decides what the "true" cost is.

  17. neo-economic-liberal bullshit by dmiller · · Score: 5, Insightful
    Well, the point is that it is fundamentally wrong for the government to do anything to hinder the workings of the market economy.

    I sincerely hope that you are joking, or playing devil's advocate. The "market economy" is a fiction, created by government contrivance. Do you really believe that it is some sort of objective truth? or that it is the ultimate expression of human desire for advancement?

    The market economy has done such an excellent job in protecting the environment and promoting individual liberty. Ironically enough, the "free market" has given us the most blatent interferences in market freedom that we have seen.

    This is not to say that the market is undesirable or is not an excellent allocator of (some) resources - just that is it insufficient as a complete societal model.

    1. Re:neo-economic-liberal bullshit by Anonymous Coward · · Score: 0

      sounds like you feel passionate about something, but there seems little coherance in what you say.. certainly hayek and friedman are not "neo" anything :-) please go read "The Architecture of Modern Political Power". That'll take about a week, but might help begin to crystalize the relationship between economics, politicals, and social science. Unfortunately it's a difficult read for our US "honor students".

    2. Re:neo-economic-liberal bullshit by NineNine · · Score: 1

      I sincerely hope that you are joking, or playing devil's advocate. The "market economy" is a fiction, created by government contrivance. Do you really believe that it is some sort of objective truth? or that it is the ultimate expression of human desire for advancement?


      "Markets" form with or without goverments. People naturally trade goods and service ebtween each other. Try an Econ 101 class.


      The market economy has done such an excellent job in protecting the environment


      That's what lawsuits are for. The areas that are badly polluted in this country are polluted because they're public areas, and the gov't never sues private, polluting entities as they should.



      and promoting individual liberty. Ironically enough, the "free market" has given us the most blatent interferences in market freedom that we have seen.


      Individual liberty? Like what? National tracking system? That's the US govt. Wiretapping and email cracking? That's the US govt. How exactly has your "individual liberty" been harmed by a private entity? I'm really curious.

    3. Re:neo-economic-liberal bullshit by cp99 · · Score: 2

      "Markets" form with or without goverments. People naturally trade goods and service ebtween each other. Try an Econ 101 class.

      Perhaps if you weren't so busy trying to be patronisng to the parent poster you would have noticed that he or she wasn't denying the existance of markets.

      --
      Warning: Some ideologies on the Net are smaller than they appear.
  18. von Hayek by Anonymous Coward · · Score: 2, Insightful
    It's nice to see people mention Hayek and proper economics (not to be confused with Keynes, and the collectivist plutocracy the Central Bankers have ushered in).

    I want to mention that Hayek, at least in "The Road to Serfdom", does not call for an abolishment of government. He seems to acknowledge, as many of us do, a need for it. Our founding fathers did.

    The problem is, combined federal, state and local government here now represents about 50% of the market place, as opposed to around 5% prior to 1910. Truly this is *the* metric that shows clearly the US is now a collectivist / socialist enterprise.

    History shows (Russia, National Socialist Germany, etc..) us that such a model does not work. It is a non competitive model. At best it can limp along, but will not provide liberty, self determination, self actualization. It cannot provide *opportunity* for a middle class. "We're in a tight spot!" - Oh Brother.

    The states now feel the pinch (punch) of this last fed induced mania. For some excellent data and commentary on the current state, see Michael Hodges "Grandfather Economic Report". Best, Dave

    1. Re:von Hayek by Dean+Sas · · Score: 1

      collective/socialist? :D you've just made me fall of my chair with laughing, thank you

    2. Re:von Hayek by Anonymous Coward · · Score: 0

      I would argue both states listed were tyrannies.

      We all know how well those work..

      Try using a properly run state as your refrence.. oh whats that, you wen't taught about those in school?

      Go research many of the northern european states, most have sucesfull "socialist democratic" (REAL democracy) goverments.

    3. Re:von Hayek by King+Babar · · Score: 2
      The problem is, combined federal, state and local government here now represents about 50% of the market place, as opposed to around 5% prior to 1910.

      Sorry, but I'm not sure what you mean here. As a share of GDP, the 1999 figures I'm familiar with say it's 29%. Furthermore, you are going to have to do a lot to convince me that this amount of increase is a bad thing. Life expectancies are way up, poverty is way down, education has improved for the vast majority, and we are no longer the same country we once were in almost any sense. I think it is healthy to debate our government funding priorities, and I know there is money being spent I would rather were not spent. But if you make me pick between 2002 and 1902, the choice is too easy. And if you argue that we've made all of this progress completely in spite of the government, I'm afraid to say I would like to see a lot of specific evidence that this is true.

      --

      Babar

    4. Re:von Hayek by trixillion · · Score: 1

      The last time I looked at Hodges sites (maybe a year ago) he was saying that federal, state and local government outlays combined to just shy of 40% of the national income. The key here is the use of national income as opposed to GDP; I forget his justification. For 1999 that would be right about 35%. See this link for more information concerning the difference between national income and GDP and for historical data.

      cheers

  19. Re:Privatize them! by Omkar · · Score: 1

    The role of the government is primarily to establish a level playing field. The private sector, in the long term, is far more efficient than government services.

    For example, the wave of privitization in the early 90's in India. Consumers benefitted tremendoulsy from the competition.

  20. this is not the problem... by Anonymous Coward · · Score: 0

    In the USA, if you start a business and it fails you are allowed to raid it's funds to shore up your own pockets... I.E. the rich man that tried to pull a fast one get's richer while the small investors and employees get shafted. the laws need to be changed that when a business fails the executives personal finances are to be seized, audited, and if any hint of wrongdoing raided completely and distributed to the shareholders, employees and finally creditors... EVERY PENNY AND PHYSICAL ITEM IS TO BE TAKEN AND LEAVE THE CEO'S PENNYLESS.

    this just might keep the scumbags from starting a business with plans to fail from the start (Loki for example.. that scumbag robbed lots of people, including his awesome employees... they need to take everyth he owns and give it to the employees and shareholders.)

  21. Telecoms provide a needed service by taleman · · Score: 3, Informative

    Telecom companies provide a needed service, a phone is considered a necessary household item, and an Internet connection is becoming that.

    Now, in many countries a telco has been forced to provide it's services to all parts of the country, even in sparsely populated areas, to get the telecom license. Now it is possible, with the new technologies, for startup telco replacements to start offering their services in big cities. By offering data connections and VoIP there, they can get all the traditional telco customers to switch to the new services. This may of cource take time, since big companies may have made investments in their own infrastructure and are unwilling to do a forklift upgrade.

    But this leads to telecom companies going bankrupt and sparsely populated areas losing all service. A telco can easily make a profit in densely populated areas, but may run to red where there is only one customer every few kilometers.

    Pumping money to failing companies is just rewarding badly run businesses, since there was no law that prevented incumbent telecoms from offering these same new technologies to their customers. They would even have been in a better position to do it, since they already had the customer base.

    Sooner or later it becomes a problem when something that people need in their normal everyday life is run by market forces. Banks and railroads are good (or bad?) examples.

  22. That little nugget of naivete will stay with me... by Anonymous Coward · · Score: 0

    ...the rest of the day, I imagine. Intelligent people recognize the validity of hybrid solutions and not putting all your eggs in one basket--neither pure communism nor pure fiscal anarchy are formulas for success. In the case of free markets, we know for a mathematical fact those systems will refute themselves without government oversight.

    It is an easily-verified historical fact that the size and scope of the American economy is as much the result of governmental actions as it is reliance on so-called 'natural' market forces.

  23. In fact the situation is even worse. by ahfoo · · Score: 3, Insightful

    It's not just that they got caught buying the wrong equipment, the big telecoms players have specficially resisted IP over ethernet in order to keep entry costs as high as possible. The most ridiculous thing in the world is these suggestions that they had to stick with ATM and Sonet in order to cash in on the huge potential of video conferencing and video on demand and all this utter crap that only seventy year old technophobe shareholders would believe.
    Compare an OC3 from a Bell -vs- an OC3 from a native ethernet provider like Cogent. These are two different worlds of cost.
    But hey, let the FCC do what they will, we'll just add it to the list of criminal frauds already commited when it's time to impeach and imprison Bush and his administration.

  24. The market economy depends on a strong government. by Per+Abrahamsen · · Score: 5, Insightful

    It is far more profitable to either kill or join with your competitors, than to compete with them by offering better products at lower prices. This is why a strong government is needed to ensure a working market, based a continues struggle to provide better goods at lower prices than your compatitors.

    Without such a strong government, producents will join force in guilds, who keep the market closed to outsiders, by force if necessary. This was the situation until the development of nation states with a strong King as the leader.

    Unfortunately, this violates the foundation for the Libertarian belief, namely that all evil is created by government and all good come from the market. And as always when belief and reality slashes, the believers are unable to see the reality.

    Of course, this isn't an excuse for the government to take up other tasks than ensuring that players on the market follow the rules.

  25. The problem.... by AtariDatacenter · · Score: 2

    is that the technology changes TOO FAST. Normal depreciation cycles just don't work well for the way things have been changing. Assets go to zero worth in a very short amount of time. This means a constant investment cycle is needed.

    This doesn't mean that you should have one group of companies, and then start to die off as you have the next group of companies invest in the next wave of technology. Later, rinse, repeat.

    Of course, this doesn't mean that they don't have things to fix. They most certainly do!

    1. Re:The problem.... by AtariDatacenter · · Score: 1

      This is what I get for typing a response while I'm on the phone with Veritas' technical support in UK. Their bogon emmissions must have worked itself all the way into my fingers. (sigh)

  26. exisiting infrastructure! by Anonymous Coward · · Score: 1, Interesting

    The falacy that 'faster and cheeper' is better is what got us into the telecom disaster in the first place. If a new type of sewer pipe is devised, do we dig up every old sewer and replace it with the new? The old one still works fine (unless it is leaking).

    Faster faster faster. The trend mongers in the telecom industry kept making bigger and bigger pipes. But they can't combine and break up the packets correctly. Thus they can pass one million gig of data, but they can't pass and deliver a million separate gigs to and from different places.

    That is the scam. They kept saying faster cheeper. But they couldn't say better.

    As an analogy: You don't need a ten inch pipe into your shower. You don't need a fire hose on your water cooler. You don't need a 1/2 inch pipe into your refridgerator.

    It is too bad that the people who dole out the venture money don't actually know anything about technology (ok, they must know something).

    If something works, you don't replace it. We don't need 1 gig into our house. We do need reliable phone and reliable power.
    I don't need streaming video. If I want to watch a movie I will rent a tape or go to the cinema.

    Exisiting infrastructure has the advantage of already being there.

  27. I have to wonder... by AtariDatacenter · · Score: 4, Insightful

    ...if some of the (hidden) corporate interest behind this goes something along the lines of:

    "Please, please, don't bail out Worldcom! We all want to grab a piece of that 50% Internet backbone share for ourselves! Don't bail them out!" ?

  28. impeach and imprison your attitude by Anonymous Coward · · Score: 0, Flamebait

    Is it always about politics? What did W do now? I don't like his policies, and money monger oil people in general. But what did W do to be impeached and imprisoned?

    Look at yourself. You envy the fact that he is in power, don't you? Impeach your envy, imprison your partisan attitude. We need to worry about being able to make phone calls. It isn't all a big conspiracy of the rich against the poor. It is about reliable local and long distance phone. If we let the phone companies all go out of business, how will you beable to post your hateful screes?

    1. Re:impeach and imprison your attitude by ahfoo · · Score: 1, Flamebait

      Wireless my dear AC bitch, wireless. The "phone companies" would be irrelevant if wireless would take off and guess who is trying to prevent that from happening. Yeah, that's right big Dubya.
      And as for what he did to be impeached and imprisoned, don't you read the news? The Enron kids are confessing that the "California Energy Crisis" was all a big hoax perpretrated not just by Enron but by a whole consortium of Energy traders based in Houston with ties to both Bush and Cheney. I don't make the news, I just read it. That's stealing and possibly murder. People lost their lives because of those outages.
      And on a personal note, I can't stand to use the damn telephone. I leave mine unplugged most of the time.

    2. Re:impeach and imprison your attitude by Anonymous Coward · · Score: 0
      We need to worry about being able to make phone calls. It isn't all a big conspiracy of the rich against the poor.

      Bravo!! Spoken like a true dependent! There's a good sheep.

      Jr.:"Mommy, how come daddy hasn't raised my allowance?"

      Mommy: "Jr. You'll understand someday, daddy has to save money to send you to harvard to buy you a position in the new national socialist party."

      Jr.: "I don't get it?"

      Mommy: "You wont have to sweety, don't worry. Now eat your kipper treats, and I'll fix you a hot bath"

      Jr.: "Yah!! OK"

    3. Re:impeach and imprison your attitude by Tackhead · · Score: 2, Interesting
      > The Enron kids are confessing that the "California Energy Crisis" was all a big hoax perpretrated not just by Enron but by a whole consortium of Energy traders based in Houston with ties to both Bush and Cheney.

      "With ties to"? Dude, I've "got ties to" Worldcom too. The packets in this /. post probably went through a router in uu.net land, after all. (Eeeew-eeeeew.net, I have to wash my modem :) More seriously, I've hung out with some folks in the wild wacky world of financial engineering, and none of us can figure out how any of the techniques employed by Enron could have worked in a free market.

      The only reason the California Energy Crisis happened was because of laws that imposed price controls on one side of a transaction ("Thou Shalt Not Sell It For More Than $XYZ") but none on the other side ("You Must Buy At The Spot Rate.")

      California's energy markets were akin to a law saying "This is a crime-free neighborhood. Citizens are required by law to leave their doors unlocked at night, burglar alarms and private firearms are banned, and telephone operators are prohibited from answering 911 calls between midnight and 6:00 am".

      This doesn't make a thief any less guilty (it takes two to tango!) but a city council passing such an ordinance shouldn't be surprised when the burglary rate rises.

      Now, if you wanna get political about it, if Gov. Davis was so sure he was being scammed by "Texas Energy Companies" (in a cheap politicial attempt to smear Bush/Cheney with the Enron brush - because he was deliberately overlooking the California energy companies that were doing the same goddamn thing), then why did he issue tens of billions of bonds to pay for it all?

      It turned out he actually was being scammed - but his politicization of the issue cost him any credibility he had on the matter at the time. Nobody outside the extreme left believed him, they thought Davis was just politicking. Those thoughts were reinforced by Davis' actions - in perpetuating the broken partial-deregulation scheme by panicking and saddling the CA taxpayer with assloads of debt.

      And if you really wanna get political, I'll even go out on a limb and say "...because there was an election coming up in 2002, and he knew that by shuffling the CA books, he could delay the resulting fiscal disaster until after the polls closed."

      You can disregard my political points (opinion), but I think you have to concede the point (factual) about the analogy between CA deregulation, the "burglar-free zoning law", and free markets. The CA situation simply wasn't as simple as you're trying to make it out to be.

      Finally - if Bush and Cheney were truly "friends" of Enron and Worldcom, as you speculate, then why are executives of those companies in jail, and their companies in ruins?

    4. Re:impeach and imprison your attitude by jsldub · · Score: 0

      "Impeaching" a president does NOT mean imprisoning a president. although I like the sound of the second one.

    5. Re:impeach and imprison your attitude by lubricated · · Score: 1

      > if Bush and Cheney were truly "friends" of Enron and Worldcom, as you speculate, then why are executives of those companies in jail, and their companies in ruins?

      those people are not in jail.

      --
      It has been statistically shown that helmets increase the risk of head injury.
    6. Re:impeach and imprison your attitude by Anonymous Coward · · Score: 1, Insightful

      Well, I think the original poster mentioned something about reading the news. These aren't hypothetical links. The guy who pulled the fraud has confessed that it really was a scam to milk California by deliberate fraud. Go look in Google News for Enron stories from this week.

    7. Re:impeach and imprison your attitude by Tackhead · · Score: 2
      > The guy who pulled the fraud has confessed that it really was a scam to milk California by deliberate fraud. Go look in Google News for Enron stories from this week.

      In my "burglary-free zone" analogy - a city council ordering me to leave my door open, disarm myself, and shutting down the 911 phone service - are they blameless when I get robbed?

      As I said in my post, it takes two to tango. The criminal (my burglar / Enron) is guilty of his crime, but these are crimes that couldn't have happened without the government as enabler (a law that makes burglary trivially easy / California's partial deregulation scheme that guaranteed the trades profitable.)

      To clarify, I never meant that California's partial deregulation was intended to have this effect. Just like my analogy to a "burglary-free zone" law - it was passed because it made folks feel good.

      If I pass a law that says I have to buy my lemonade in bulk from people at market rates, but can only sell that lemonade from my own lemonade stand at $0.10 per glass ("Because no child should ever pay more than a dime for a glass of lemonade!"), it doesn't take an economics degree to figure out that I'm gonna wind up broke.

      So Enron burns down the lemon grove and charges me $1.00 per glass, which I have to pay, and then I sell the lemonade back to FooCorp - at $0.10 per glass, because I'm prohibited by law from passing my costs on. Foocorp then pours it into another glass and sells that glass to Enron $0.50 (Foocorp makes $0.40). Enron then sells the $0.50 glass to me for $1.00 again (Enron makes $0.50).

      In a fully-dregulated lemonade market - world without that stupid law - I could say "No way, Foocorp, lemonade's going for a buck a glass, so take your $0.10 bid and stuff it up your ass! I'll sell it back to you at $1.00 and not a penny less", and the scam collapses. The scam only works if you have a law that obstructs the normal rules of supply and demand in a free market.

  29. It's Called Retirement Through Attrition by Timinithis · · Score: 5, Insightful

    Following the Sailing to Steam Power analogy:

    Government's do not scrap entire fleets when a new technology improves over what is in existance, they strat building new ships and as the older, obsolete ships either sink, are lost in battle, or are too old to maintain they are replaced.

    There is some old technology out there, and anyone seeking a bailout on that should be denied. Airlines should be denied bailouts, unless the money is used to go toward improved tech. The $100,000 switch of yesteryear can be replaced with a more relaible $25,000 switch that can handle more traffic, then that is what the money should go for -- improvements.

    If their business model is failing, many airlines are in this boat only because of the lessed travel, then they need to adjust..close hubs, discontinue routes, etc. Yes, it would suck for the people that are affected, but what is to stop them from forming a local company to fill the void? It may be too expensive to run a daily flight from Los Angeles to San Francisco for a major airline using a big jet, because there are only 30 people wanting to go each day on average, but a smaller company with a 10 passenger leer could make 3 trips a day, and probably be very profitable.

    Government should seek to involve itself in National Defense and Policies, and Proteciton of the Populace -- everything else should be a local matter.

    --
    Sig? What's a Sig?
  30. Re:Privatize them! by RobinH · · Score: 2

    The private sector, in the long term, is far more efficient than government services.

    I was responding to the original claim that everything should be privatized. I agree that privatization is good in some cases. However, there IS a reason for public funding of certain infrastructure.

    You must admit that public education is better at establishing "a level playing field" than completely privatized education. Do you really think that the child of a wealthy person *deserves*, or has a *right* to a better education than any other child? Do you think it's acceptable that a child could miss out on an education because their parents can't afford it?

    We have public funding for things we consider basic rights. We all think everyone has a right to an education, so we constructed systems to give everyone access to those services. We also think everyone should have access to clean water, so we have municipal water utilities. There is room for discussion of these issues, e.g. an American would say that health care is a priviledge, whereas a Canadian would say that access to basic health care is a right. That's why Canada has a universal health care system, and the U.S. does not.

    The reasons why we choose to create public services is because of the argument that *everyone* benefits when access is available. To go back to previous examples: if you use public funds to connect everyone to the electrical grid, then you've increased the demand for electrical appliances. If you use public funds to build roads, then you make it easier for all companies and individuals to do business. If you use public funds to educate all children, then more kids will grow up to contribute to your economy, which makes everyone wealthier. So, in the long run, I would suggest that sometimes the private sector is *less* efficient.

    --
    "I have never let my schooling interfere with my education." - Mark Twain
  31. Re:Privatize them! by nmg · · Score: 0, Flamebait

    Actually, with fully privatized education, competition would likely drive prices down to levels affordable to most people. Even if it didn't, there would be plenty of charities or other private organizations willing to help out. Even so, I don't really support fully private education. It seems to me there needs to be a heavily standardized educational "base." That's another post, though.

  32. and if the CEO is blameless? by Anonymous Coward · · Score: 0

    What if it gets proven that the CEO was actually blameless and the fraud came from somewhere else? You already have the guy in prision before we even know the nature of the problem.

    Do you believe in 'innocent until proven guilty'? Or are you like the Stalinists: arrest whoever and then kill them just because you don't like them?

    Not all CEO's are evil money-mongers. The rich have a hard time to get to Heaven (eye of the needle) but that doesn't say that they can't.

    It is wrong to think that all rich are bad and all poor are good. We are all BOTH.

    Your plan of confiscation sounds good. I am glad that you are worrying about the obvious problem of the seemingly total corruption in our equity markets. However if you want to kill them all (metaphorically) then we won't have anyone that wants to lead.

    A return to morals based business practices would be a better tact for improving the honesty on Wall Street. They should stop reading Ayn Rand and her ilk (where anything goes as long as you are happy) and start reading books like THE BIBLE, THE KORAN, THE TALMUD, THE ICHING.

    Don't kill the sinner or you will kill everyone.
    They can be redeemed, but not if they feel backed into a corner and hunted by envious left-wing rabble rousers.

    Peace not pieces.

  33. Re:Privatize them! by StrawberryFrog · · Score: 1

    Sorry, that should read bailout or closing down the rail network

    --

    My Karma: ran over your Dogma
    StrawberryFrog

  34. Free markets by evenparity · · Score: 4, Interesting
    It is funny how many engineers and scientists tend to be libertarian, free-market types. There is this tendency to have supreme faith in the existence of "natural laws."

    But economics, psychologists and other liberal arts types realize that human beings defy "nature" all the time. People who study economics essentially study the cases where economics don't work! Psychologists study why people are not rational/utility maximizers.

    As far as the broadband/telecom connection goes, did anyone else read this article in Business Week?

    It talks about how broadband providers are keeping prices artificially high because they would rather deal with slower adoption rates at higher margins than faster adoption at lower margins because THEY KNOW EVERYONE WILL ADOPT BROADBAND EVENTUALLY and they can force us to pay more. Cable broadband profit margins are about 50 percent now.

    Makes you realize how much companies like Comcast can prevent high-speed adoption and screw over the telecoms in the process.

    (I canceled my Comcast modem and television service last week. Originally, I just wanted to get rid of the television service, but they told me that if I did, they were going to jack up my cable modem price by $15. I told them to cancel everything.)

    1. Re:Free markets by cp99 · · Score: 2

      It is funny how many engineers and scientists tend to be libertarian, free-market types. There is this tendency to have supreme faith in the existence of "natural laws."

      This isn't a observation which I've made. I'm a chemistry PhD student, and have worked in a number of institutions, and have never met a libertarian in the flesh. Only a few scientists that I know have heard of them, and the ones that have generally think that they are a joke (as do I).

      However, on Slashdot, everything changes. Maybe it is because the average slashdotter is much more knowledgable on computing than chemistry/physics/biology, or perhaps it has to do with the average age of slashdotters. Or perhaps slashdot simply attracts strange points of view.

      --
      Warning: Some ideologies on the Net are smaller than they appear.
    2. Re:Free markets by evenparity · · Score: 1
      I'm not sure. Academic circles tend to be more liberal than the general populace. I imagine that this also plays out at higher degree levels because they have spent more time around universities.

      But Ayn Rand objectivism still seems to have a pretty big audience among a lot of the dot.com uber capitalists. Then again, maybe it is an outgrowth of competitive Type-A personalities that they think competition is always beneficial. I am a bit sick of hearing evolution/natural selection analogies in business and economics.

      It really depends on at what level you are trying maximize at. And a lot of the so-called Asian Tiger economies (although suffering through a downturn) have shown that coordinated industry does work better than open competition in some circumstances.

    3. Re:Free markets by gmhowell · · Score: 2, Insightful

      But economics, psychologists and other liberal arts types realize that human beings defy "nature" all the time. People who study economics essentially study the cases where economics don't work! Psychologists study why people are not rational/utility maximizers.

      I can't speak to psychologists, because those people are nuts, but most economists I've spoken to are generally concerned with 'cases that don't work' only in that they are trying to improve the models. I would also disagree with placing either discipline in the 'liberal arts' category. They can (and usually are) studied as scientific disciplines. Yes, they are probably best termed 'soft sciences' relative to chemistry, but they certainly have more in common with biology than they do with English Literature.

      (I canceled my Comcast modem and television service last week. Originally, I just wanted to get rid of the television service, but they told me that if I did, they were going to jack up my cable modem price by $15. I told them to cancel everything.)

      I'll try not to be snide here, but without context, this sounds like biting off your nose to spite your face. Are you dropping the service because they make too much money? How do you determine that? Profit (to be distinguished from 'economic profit') is perfectly acceptable. How are prices set? A common misconception is that it is "(price of goods or services) + x%" where 'x' is an arbitrary amount that someone decides the company 'needs'. This is not true. Price is determined based on (here goes the ugly word) markets. In a transaction, both sides get a deal that is acceptable to themselves. If Comcast says that $100 per month is a good price for them (and how they arrive at that is often based on the above formula) that's fine. As a customer, do you feel you are receiving enough service for that $100 per month? That's all that matters. Why should a consumer care how much Comcast gets? All that really matters is what YOU get.

      Sorry, I lost it somewhere and started rambling.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    4. Re:Free markets by evenparity · · Score: 2, Insightful

      Granted, I am using "liberal arts" as a term that includes the social sciences. But the term shrinks to an un-useful scope when you start dissecting it. Political science can be very scientific, as can philosophy, linguistics and other fields included in "liberal arts." As for my Comcast remarks, I canceled because the price that I will bear for high speed internet is about $40-$50 a month, which is lower than what they want to provide services for. Fine. But I admit that I am punishing them for what I feel is a coercive marketing tactic. Or rather, I am voting my displeasure at being squeezed. First, they are taking advantage of a monopoly on cable services in my area. Second, cable television and cable modem service were offered separately at first and both operate with very comfortable profit margins. Now, they say that if you don't sign up for both, we are going to increase our profit margin on one to 80 percent? How abused I feel by the company directly ties in to how satisfied I am with the product.

    5. Re:Free markets by Cinematique · · Score: 2

      I hope you didn't cancel your service solely based on the fact that you don't agree with a 50% margin. Most things you buy are priced at twice their actual cost.

      How much do you think it costs Coke to make a bottle of Sprite? $1.00 for a bottle? Come on.

  35. Re:Privatize them! by RobinH · · Score: 1

    It seems to me there needs to be a heavily standardized educational "base."

    I agree. I think that goes along with the whole "level playing field" idea.

    But if privatization always works, why are airports going back to federally employed security? It's precisely because they're trying to enforce a standardized base level of security. The private security firms are great at providing low prices, but they don't seem capable of providing adequate security at the same time. It's the whole lowest bidder problem that we tend to get into whenever the government starts asking for bids.

    --
    "I have never let my schooling interfere with my education." - Mark Twain
  36. A matter of national security by Digital+Soldier · · Score: 2, Interesting

    For a number of years now, there has been a large effort to take the ownership and management of a lot of the telecom (data comm) infrastructure out of the hands of the federal government. Outsourcing. Unfortunately, because the ability to communicate over this infrastructure has become so important to national security, the federal gov must make sure it remains functioning. Look at some of the postings from a couple of days ago relating to the Navy-Marine Corps Intranet (NMCI). That project relies exclusively on the financial health of EDS, the prime contractor. These "Internet Pioneers" should remember that the federal government IS the internet pioneer and that the only reason most of them have a job to begin with is the fact that Uncle Sam was kind enough to give up most of the direct control of the infrastructure that the internet is based on. Wheew! Glad I got that off my chest....

  37. How Corruption Works by Featureless · · Score: 5, Interesting

    You have people running big bussiness and people in the federal government. They're all friends. They went to Yale and Harvard and Princeton together... they drank at the same clubs. Their parents were friends, and their kids are going to Taft and Dalton and Exeter together right now.

    Their goal? Simple. Take tax money out of the government, and get it into their pockets.

    Back in the Reagan days, their favorite was the defense industry. It was perfect; there's relative secrecy associated with defense approrpriations, and the military bureaucracy is so intense that it took quite a while for the few people looking to find those $10,000 toilet seats.

    We also saw a lot of "foreign aid" disappear into the ether, split up between the corrupt foreign officials and the corrupt local ones, all of it more or less going to Switzerland and Grand Cayman. Still do, actually.

    More recently it's been Enron ("privatizing" electric utilities was already absurd, and anyone who followed it the time - including me - called it a blatant invitation to fraud; who knew they'd go all the way to turning off the lights to convince people of a fake shortage! Gives you an idea how little these people fear getting caught), the "airline bailout," the "farm subsidy," and of course, don't forget the "tax breaks."

    Now it's a "telecom bailout."

    All of these scams netted their perpetrators billions, and in some cases tens or even hundreds of billions. Almost none of the people involved have been investigated, let alone caught. It's the new American mafia, ladies and gentlemen.

    Michael Powell is a notoriously corrupt FCC chairman; he's blatantly carried water for both the cable and bell monopolists, and under his watch telecom (and especially internet) service has been abyssmal (remember Northpoint? and what happened to the CLECs?) while prices have risen. It was easy for him, a smug "regulator" in a plum job snagged with handy nepotism; all he had to do was stand back and wink while the bells slaughtered their competition. You don't get a job like FCC chair under a Bush administration without knowing how the game is played... Anyway, this goofy letter to him is pretty amusing; you may as well write a letter to Satan.

    Until heads start rolling in quantity (and believe me, once we started, by the time it's over we'd need to build a new federal prison), it's open season.

    1. Re:How Corruption Works by Digital+Soldier · · Score: 1, Insightful

      Wow! He sure managed to do a lot of damage in 2 years. Do you think the previous 8 years could have had an impact too?

      sarcasm

    2. Re:How Corruption Works by Anonymous Coward · · Score: 0
      Back in the Reagan days, their favorite was the defense industry. It was perfect; there's relative secrecy associated with defense approrpriations, and the military bureaucracy is so intense that it took quite a while for the few people looking to find those $10,000 toilet seats.

      It sounds like you're laying that one on the Reagan administration. Toilet seats made news during the Reagan administration because Reaganites were notorious cost cutters who made a fuss about that kind of stuff. Remember all the criticism they received from liberals for claiming that government is wasteful and inefficient ? Well the military toilet seat was one of the examples they loved to use. Don Regan, David Stockman ? Ever heard of those guys ?

      Anyway, it sounded like corruption at first, but in fact overspending is just the way of military procurement. Ever heard of milspecs ? Dictates everything, including what country your semiconductors are manufactured in. That's why we didn't have GPS receivers during the gulf war even though we put the fucking satellites in orbit. Nobody could figure out how to build one to milspecs so the Army bought consumer retail version last minute out of desperation. Anway, so if the navy wants a toilet seat it doesn't go to Home Depot and buy a toilet seat. It has a team of engineers and machinists design and build a toilet seat. Turns out that costs $10K. Stupid ? Yes. Corrupt ? No.

      ("privatizing" electric utilities was already absurd, and anyone who followed it the time - including me - called it a blatant invitation to fraud; who knew they'd go all the way to turning off the lights to convince people of a fake shortage! Gives you an idea how little these people fear getting caught)

      1>Electric utilites were not privatized, they were degregulated. 2> You called privatization a "blatant invitation to fraud" when what happened was deregulation. So basically you had no clue what was going on at the time, did you ?

      Michael Powell is a notoriously corrupt FCC chairman; ... and under his watch telecom (and especially internet) service has been abyssmal (remember Northpoint? and what happened to the CLECs?)

      NorthPoint goes out of business and this is proof that Michael Powell is "notoriosly corrupt".

      while prices have risen.

      So if beef prices rise, this means the the Secretary of Agriculture must be taking bribes from the cattle industry ? I think I understand. And if interest rates rise, than that means that Alan Greenspan is taking bribes from the Jews, right ?

      It was easy for him, a smug "regulator" in a plum job snagged with handy nepotism; all he had to do was stand back and wink while the bells slaughtered their competition.

      So you seem to believe that the proper role of government officials to pick winners and losers in the marketplace. If they fail to do this, then they are acting corruptly.

      You don't get a job like FCC chair under a Bush administration without knowing how the game is played...

      You don't have any specific allegations of wrongdoing. You're just spouting off. Troll.

      Anyway, this goofy letter to him is pretty amusing; you may as well write a letter to Satan.

      Anyone who mods up an allegation that a Bush appointee is like Satan is just gratifying his own political bias. I strongly urge the metamoderators to reign that crap in. I am not trying to shut down criticism of Bush, I am tryig to raise the level of debate beyond name calling. In fact, I believe there are many intelligent criticisms which should be made of Bush. However, comparing Bush appointees to Satan is not an intelligent critcism. So please mod that shit down. Thank you.

  38. However, sail boats are the wave of the future by Anonymous Coward · · Score: 0

    When we run out of dinosaur fuels.

  39. Yes, except by tkrotchko · · Score: 2

    The existing telecom infrastructure is too slow, and the RBOC's have no interest in upgrading it primarily because it upsets their existing infrastructure and business plan.

    I don't think the bailout is a good thing, but I'd point out an analogy.

    Do you know why there are so many roads to every little hamlet, town, and farm in the United States? Courtesy of the US Post Office who would deliever mail to your mailbox only if the road was paved.

    So there are examples of forced infrastructure upgrades having an economic benefit as a whole, so this is not without precedent.

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
  40. Capitalism is ethical? by Epeeist · · Score: 5, Insightful

    > The primary reason most people advocate capitalism is ETHICAL, not scientific.

    In what theory is capitalism ethical? Nothing in my readings has any statements about an ethical dimension.

    > Health care? You have only to go to a socialist country to see how that works. They won't throw you out in the gutter, but they will make you get in line, possibly for months to remedy serious ailments such as cancer.

    So what happens if I have cancer, but no money for treatment? How is this different to the "socialist" case?

    > You need to think about more than one possibility. Chanting to yourself over and over again "Government can solve my problems, government can solve my problems" is not going to work.

    As opposed to chanting "Government can't solve my problems" or "Only the market can solve my problems"?

    1. Re:Capitalism is ethical? by williewang · · Score: 1

      You raise some good points, no doubt. But Adam Smith was a moral philosopher and happpened to write a book called the Wealth of Nations--the very founding of capitalism as an idea and social system. I suggest you read it.

    2. Re:Capitalism is ethical? by Andyrew2000 · · Score: 1

      >In what theory is capitalism ethical?

      In the same moral theory that is behind the idea freedom of speech, freedom of religion and the words "all Men are created equal, [and] are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness" is the moral theory under which capitalism is ethical.

      Something tells me that you've heard about these theories before, but just that you didn't make the connection that they have to capitalism.

      The three fundamental rights of every man are Life, Liberty and Property. Justice is defined as the enforcement of these rights. The only extent to which your fundamental rights can be deprived is to protect the fundamental rights of everyone, including yourself. For example, it is moral to force people to pay taxes (deprive them of property) to pay for police and military, which will protect the rights of everybody from thugs and foreign invaders. In the case of life and property, when I say that government should "protect" them, I mean that government should "keep other people from physically taking away your freedom to create and preserve your own property and life." The only economic system the stems from the recognition of these rights is capitalism. Socialism and Communism are especially immoral because they outright deny the existence of property as a right. Anarchism is wrong because it does not take any steps to protect these rights.

      There you have it: a crash coarse in why capitalism is the only ethical and moral economic system. If you have any questions, feel free to ask.

      >As opposed to chanting "Government can't solve my problems" or "Only the market can solve my problems"?

      I would say chant "Everyone can solve his own problems"

      >So what happens if I have cancer, but no money for treatment?

      The same thing that happens when you want an iPod and you don't have enough money-- you can choose to do with out the iPod or appeal to others for assistance, which they may or may not choose to give you. In the case of the iPod, other people are probably not going to find your need very important, but I bet that if you had cancer, people would be much more likely to help you. There are free voluntary charity organizations for things like that. You're probably going to say , "there isn't enough private money to help all the people with cancer," and to that I would say: "tough." It is not one of your fundamental rights to get cancer treatment (see the bold part of the my third paragraph). It is everyone's right to choose how to manage the products of his own mind (property). You don't have a right to force others to give up their property no matter how pressing your need is (unless your need is the protection of one of your fundamental rights).

      -Andrew

  41. double standard--one must die by Anonymous Coward · · Score: 2, Interesting

    What needs to happen is to remove cable companies from content providing or allow telcos to provide content. That's the real reason DSL is not more popular--all the profit to be made from the upgrade is denied to the local phone companies that have to make the investment. They are still banned from providing content-games, movies, ect... they have to set it up and give it away.

    The big media companies have done an end-around by purchasing cable companies and denying others media companies access. Now many of them also provide phone service taking away from the phone companies when the phone companies can't compete back! Even AT&T was broken up as only the long distance only arm has used the system against it's former children by buying cable comanies and offering data services over them which compete against the locals while still supporting the ban on locals from carrying long distance directly.

    One has to die--Cable or Local Phone--they are now redundant. As far as our rights go we want the phone companies to win due to their common-carrier status. They cannot be censored as easily. (versus the RIAA/MPAA run cable co) This means that rules to open up cable to competition must be pushed thru--and allow Local phone to buy them up as they fail--but still have to offer competition.

  42. Remember this.... by Anonymous Coward · · Score: 0

    Next time you say they should privatize Amtrak.

    We're getting full railservice for around $1B a year.

    Hell, 3 days of a war in IRAQ will cost more than that, and we won't actually get anything WORTHWHILE from that "Investment".

  43. Re:Environment by slattont · · Score: 1
    "The market economy has done such an excellent job in protecting the environment and promoting individual liberty."
    Well let's just compare the environment in countries that free economies vrs the command driven economies which I believe have lately been experimented on in the former Communist countries.
  44. Oh for pete's sake! by A+nonymous+Coward · · Score: 2

    You must be very young and/or naive to think that a bankrupt company simply disappears assets and all. What happens is that the assets are sold off, auction-like, at a fraction of the cost to build them from scratch. For instance, the Iridum satellite phone system went belly up, cost billions to shoot 77 (88?) satellites into orbit, plus spares, ground stations, all that, sold for pennies on the dollar or less, and still running, and now it can stay in business because the initial R&D expense has evaporated and is no longer part of the return on investment equation.

    Who loses? The original investors. So what, they bet on the wrong horse.

    EVERY bankrupt company goes out like that. Original investors lose, R&D is written off, lost, gone, evaporated. If any assets have remaining value, someone buys them up for what they are actually worth. If they have no worth, they go to the landfill. But they usually have soem value.

    Think of what would happen if you declared bankruptcy. Would your house, car, computer, all disappear in a puff of smoke? Would the bankruptcy court order them destroyed? Of course not! They'd be sold to pay your debts. Same thing for bankrupt companies.

    1. Re:Oh for pete's sake! by Anonymous Coward · · Score: 0
      Great, thousands of miles of cable, thousands of telco stations, and they are going to be operated at a loss?!?!?

      It's not just about the physical assets, but you need to be able to operate and maintain those assets utilizing a business plan that still keeps you afloat financially. Service along the coasts will never be a problem, but there a lot of miles in between the coasts. It will not be cost effective, so it will potentially be abandoned.P> Unless you think those people don't deserve any access because the market doesn't make it affordable.

  45. why don't we.... by monkeytits · · Score: 2, Funny

    It's simple we should just pass a law that no business can go out of business, then no one will ever lose their job. And then the 40% we hand over to our respective governments can go for something good, like bailing out the company we work for. Wait why don't we all just start our own companies and when it fails the money we paid ourselves for doing nothing, we can give to the government to bail us out. What was I thinking!? Instead of that why don't we just work for the government! It just gets simpler and simpler.

  46. Re:Privatize them! by Omkar · · Score: 1

    Precisely. The problem with the system isn't privitazation, it's the absurd (in some cases) lowest-bidder way of choosing contractors.

    Consider roads. American road constuctors don't have any incentive to lay quality roads. This is one of the reasons potholes are so common.

    Oh, and in general, public schools in America suck . The schools themselves may be good, but the average student lags behind his counterpart in other nations. Private schools could compete and raise the quality of education. Vouchers would solve the cost problem. We're already seeing a similar model for universities (without vouchers, but with many scholarships). Most Ivys cost around than $35k a year, but the whole system turns out many high quality graduates. I think competition is one of the reasons why the American university system is one of the best in the world.

  47. Pay-back is fair, at least in Europe by johnjaydk · · Score: 1
    I don't know the situation in the states but in Europe the operators were forced to pay astronomical figures for their licenses and at the same time a large number of licenses were for sale.

    This had the effect of the goverment draining the telco's of all their capital and their ability to actually deploy the networks. This also left them very vurnable to market drops since the market had to grow at the usual high rate for them to make ends meet.

    In my (and several market analyst) oppinion the politicians bears a lot of the blame for the current low in the telco business.

    It's only fair that they restore the balance by giving the telco's a hand.

    Disclaimer: I don't have shares in any telco's in fact I don't have any.

    --
    TCAP-Abort
  48. Telecomms and failure by jcdick1 · · Score: 1

    I had a similar discussion at the bar the other day with a friend over telecomms and the Worldcom failure and all that.

    We finally settled on a solution that would never be implemented, but in our non-specialist, non-economist minds would be the only real solution:

    Separate infrastructure from services completely. Let your regional ILEC become an entity that does only one thing...own copper. Thats it.

    And then they provide access to that copper to any and all service providers at a competitive rate. The same competitive rate for Earthlink as Jimmy-Joe's ISP and Crab Shack. If there is a technology that is coming that would provide great service that customers and the various service providers want, they can all (infrastructure and services companies) help pay the upgrade costs.

    But as I said this would never be implemented. Disenfranchising the ILEC would make too many people upset.

    --
    What?
    1. Re:Telecomms and failure by budgenator · · Score: 2

      Separate infrastructure from services completely. Let your regional ILEC become an entity that does only one thing...own copper. Thats it. Maybe you wouldn't really have to go that far. If the infrastructure portion was self-sustaining, charging everybody the same fee's whether it was themselves or somebody else; giving everybody the same installation cycles and access their regulatory environment would lessen considerably.

      --
      Apocalypse Cancelled, Sorry, No Ticket Refunds
    2. Re:Telecomms and failure by bourne · · Score: 2

      Maybe you wouldn't really have to go that far.

      They have to be separated. Consider this: I'm Joe Telco Lineman. I've been working for my ILEC for 20 years, I've got another 20 to go, and I like that pension thingy. I've been working in a monopoly environment where I could more or less get it done without any competition or quality control, because hey, what are they gonna do? Go to a competitor? hahahaha....

      Then these upstart CLECs come along, and the gawddam government says that we have to share OUR copper with them so that they can take business away from US. Well shit Billy, I don't know about you, but I've got 21 work orders today and 15 of them are OURS and 6 are from those CLEC bastards. Seems to me I'm only likely to have time to get... oh... 15 or so of them done today... Sound about right? Damn straight... We'll get those others done tomorrow. Mebbe the day after that.


      If the above scenario doesn't sound likely to you, you haven't talked to enough ILEC telco workers. I've had to deal with a number of them over both voice and data, and had discussions with a few others who didn't know I had anything to do with data or telco and were happy to let their hair down. They OWN the copper the way a mean doberman owns that bone between his paws that you were hoping to get a hold of.

      It is insanity to believe that you can have company A owning infrastructure and services, company B owning services, and expect company A to give "the same installation cycles and access" to their competitors. Fortunately for the ILECs, the government has so far been insane.

  49. who said this by Pig+Hogger · · Score: 2

    The best way to force a redesign is to throw a monkey wrench in the works.

  50. Ayn Rand is laughing in her grave by hakalugi · · Score: 1
    "...the government .. prop up the ailing ... behemoths. ... companies bought expensive network technology with long bonds. That technology has been made obsolete by gear getting faster and cheaper all the time by Moore's law and Metcalfe's law. The ... companies are asking for ... a bailout for their investments in sailing ships after the advent of steam. ..."

    wow, I'm re-reading atlash shrugged and am shocked at the type of stuff pulled all the time.

    the novel is at points 'too unrealistic' then you read something like this.



    good for the writers of the open letter, hopefully the reader(s) of the letter will understand and let systems/proudcts/companies fail/succeed on their merits.

    --
    If she floats, she's a witch.
  51. Telecom Behemoths.. by Kutsal · · Score: 1, Interesting

    "The owners and employees who started the telcos and grew them and maintained them have already been amply rewarded - they were paid while they were doing it and they got to see the value of their stocks grow. If they want more money, they have plenty of other options besides being subsidized by the Federal Govt."
    What would happen, hypothetically speaking, if, say the Telecom Behemoths all decided to dismantle ALL their network equipment, disconnect all their landlines and started selling Wisconsin cheese?
    Do any of these little phone companies (CLECs) have the capital to invest in nationwide networks that bring phone service TO YOUR DOOR? A service many people take for granted by the way..

    --
    Karma: Bad (but who really cares anyway?)
  52. Re:The market economy depends on a strong governme by benjfowler · · Score: 1
    I have to heartily agree that while the free market is the most efficient way we know of to allocate scarce resources, it's the civilising influence of government that ensures that everyone behaves themselves, and preserves social conditions necessary to ensure social stability and thus, the existence and smooth functioning of the free market at large.

    The old Eastern Bloc happens to be an excellent example of what happens when governments are not strong enough to enforce the rule of law and make everybody play fair.

    You cannot have a free market and foreign investment without a certain degree of government intervention. Otherwise you see the situation prevalent in the more-backwards parts of the world where businessmen find it cheaper and more convenient to use unethical means to dispose of the competition than follow the rules.

    Russia is an excellent example. Quite a few people have been rubbed out by their business competitors because the government is either unable or unwilling to impose a sufficent level of rule-of-law. I believe that just the other day, a regional governer got shot in the back of the head in broad daylight, apparently an organised hit by disgruntled businessmen. Check out the photo.

  53. Telco crash (Historical) by Gerry+Gleason · · Score: 2
    It wasn't an attack, it was a bug. In brief, there was part of the initialization code that wasn't properly multithreaded, and it caused cascading failures. It wasn't a problem as long as only one switch in a 'neighborhood' was re-initializing, but once it got started, more switches connected to the original set would hit the same problem and re-initialize too and things just kept getting worse.

    The nature of the problem was that all the switches were running the same or very close versions of the software, and they all had the same bug. It's a good thing MS isn't making much headway in the server, firewall and router spaces, or we would have lots of problems like this one already. (ok, it's a lame joke really, but not too hard to imagine a real scenario)

  54. Pioneers by pbrammer · · Score: 1

    signed by internet and tech industry pioneers

    So, does that mean that Al Gore signed this letter? I mean, after all, he is the father of the Internet.

    Phil

  55. Re:The market economy depends on a strong governme by nmg · · Score: 1

    You seem to be confusing libertarianism with anarchy. Libertarians are more than happy to pay taxes to provide military and police force--protecting people from physical harm is what the government's job is.

  56. Stopping crime OT by bored · · Score: 1
    Ah yes, and of course the police do nothing that giving everyone a gun wouldn't. It's like I've always said: you can't beat a heavily-armed
    lynch mob for a meticulous and professional criminal investigation leading to a fair and open trial.


    Actually, the police do little to stop real crime (i'm not talking speeding tickets here i'm talking robberies, assault, murder, etc.). They are
    little more than glorified paper pushers labeled as a deterrent. Basically you have to commit murder before any investigative part of the police
    force is brought in. The local police where I live, always give the lame excuse that they are undermanned (even though there is like 1 cop per
    100 people in the city). Its more like they are to busy enforcing traffic violations and petty civil issues (loud music, arresting people who haven't
    paid their late tickets etc.) to do anything except show up and write an incident report when a real crime occurs.

    I am apparently one of the few people who doesn't take the "we need more police" line seriously. More police != lower crime rate. Even
    though that is usually the reason given to hire more. Instead I see 50 cops standing on street corners "showing presence" in groups of three or
    so on a friday night when I go downtown to drink. Since, the town I live in is pretty laid back its rare to actually see them doing anything. Most
    of the 'disturbances' probably occur in the bars which already have hired security there to check id's and deal with such problems.

    Basically what i'm getting at, is you probably have a better chance of stopping crime if nearly everyone carried a gun. Effectively, you have
    a 99% of the population as a police force. Instead of the first instinct being "call the police!" the first instinct should be "lets go stop that!" Five
    to ten minutes later when the police show up there is a good chance that the burglar has run off with a few valuable things, the rapist has
    finished up and ran away, or the murderer is half way across town.



    1. Re:Stopping crime OT by elvum · · Score: 2

      Basically what i'm getting at, is you probably have a better chance of stopping crime if nearly everyone carried a gun. Effectively, you have a 99% of the population as a police force.

      No, you have 99% of the population as an untrained armed mob. Would you really feel safer if you knew that every junkie, angry drunk, borderline sufferer of mental illness and road rage perpetrator you met was packing heat? Reducing crime by arming the whole population is like limiting the probability of nuclear war by giving everyone their own atom bomb!

    2. Re:Stopping crime OT by bored · · Score: 1

      How about I present you will the other side of your unlikely situation.

      If an angry mob (with or without guns take your pick, although I should point out most angry mobs in the US in the last few years were partially armed) were to attack your neighborhood. Would you want to have a gun to defend your home, wife and children? On the other hand you can call the police, and hope they can get though in time, or you can hope that you can escape from your house trailing your wife and children and hope that no one catches you, or your loved ones. Again, if you decide to run would you like to have a gun with you?

  57. Re:The market economy depends on a strong governme by ShooterNeo · · Score: 2

    But are libertarians willing to have the governent break up monopolies and "guilds" of producers that band together to drive everyone else out. Like a certain software maker? Of course, due to the way our "just" court system works the big corporations are very difficult to actually stop with legal means, but the goverment is at least trying.

  58. USA != capitalism by supabeast! · · Score: 2

    Perhaps our schools should teach students about corporate bailouts/handouts right before the students learn about capitalism, so that the students grow up realizing that the USA is a SOCIALIST NATION!!!

    1. Re:USA != capitalism by jnd3 · · Score: 1

      Absolutely. Now what are we gonna do about it? We've seen over and over that socialism is a miserable failure. Unfortunately it is the nature of people in power to want to maintain that power. So how do you think they do that? By getting people dependent on the government -- creating a group of people who (a) pay no taxes and (b) receive government disbursements ("working class" to a certain part of our political spectrum).

      The concept of this letter is great (and I'm working for a company that provides telecom equipment and services). I'd love to see the old dogs die quickly so I could get some fun stuff to work on, and maybe have some innovation, vision, new companies, new jobs. But no, instead we get an extra 13 weeks of unemployment income.

      Term limits would be incredibly helpful to reduce this dependence on goverment. Then we'd have enough turnover to avoid the little fiefdoms that show up in the House and Senate. But where are we going to find a Congress that will vote for THAT? And let's not even get started on legislating from the courts...

      Election day in the U.S.A. is November 5th. So VOTE!

    2. Re:USA != capitalism by machinegestalt · · Score: 1

      Is that why socialist nations exist with a higher gross national product than the united states?

    3. Re:USA != capitalism by Sylver+Dragon · · Score: 2

      Term limits would be incredibly helpful to reduce this dependence on goverment. Then we'd have enough turnover to avoid the little fiefdoms that show up in the House and Senate. But where are we going to find a Congress that will vote for THAT? And let's not even get started on legislating from the courts...

      We tried this, it failed. IIRC, a couple of years ago, we the people, here in California, passed a propisition that would enforce congressional term limits. It was stuck down as "unconstitutional" by the courts. Funny thing that, the president has a defined limit on the number of terms he can serve, but it would be "unconstitutional" for senators and house reps.
      I'm not disagreeing that term limits are what we need, but the only way its going to happen , is if we have a really carefully crafted law, passed by the people, which the courts don't kill, or if we can force a constitutional amendment. I'm all for it, and would vote for either, but I don't see it comming any time soon.

      --
      Necessity is the mother of invention.
      Laziness is the father.
  59. Re:Privatize them! by Anonymous Coward · · Score: 0

    How is that flamebait?

  60. Taking down exchanges internally. by JKConsult · · Score: 1
    Section 5 of Part 1 of Bruce Sterling's The Hacker Crackdown . None of this was done from the outside. AT&T only wanted people to think it did. What happened was the complete result of programming failure.

    Bruce describes the problem thusly: "Within the C software was a long "do... while" construct. The "do... while" construct contained a "switch" statement. The "switch" statement contained an "if" clause. The "if" clause contained a "break." The "break" was supposed to "break" the "if" clause. Instead, the "break" broke the "switch" statement."

    The upshot was this: the new System 7 software provided a safety net in case a switch had issues. It would rid itself of all calls, then reboot itself, and when it came back online, it would send out an "OK" signal. The problem was, the "OK" signal would cause all the switches on the net to bookkeep the fact that the other switch was back online. While bookkeeping, the flaw arose: If two calls came in at almost exactly the same time while in bookkeeping mode, the data would get garbled due to the glitch. Then the switch would drop all calls, reboot itself, and then send out an "OK" signal to all the other switches. See the problem forming? A cascade of ups, downs, and "OK" signals floods within ten minutes, and nightmare scenario occurs.

    Remember this, it was not a hack. It was simply poor programming.

  61. *Sigh* by Anonymous Coward · · Score: 0

    You're either misreading or dense, but such is the sad state of civics education these days. The US Constitution does not grant any rights. It enumerates some of the rights which every citizen inherently posesses, which the government cannot deny them. Not to mention that the rights enumerated the sole ones possesed (c.f. Ammendments IX and X).

    It's not that people under the regimes you're mentioning aren't granted the same rights, but that they're being denied their inherent rights.

  62. Re:The market economy depends on a strong governme by nmg · · Score: 1

    See my post here. There is nothing inherently evil with monopolies that come about due to actual free-market competition.

  63. If broadband is so compelling ... by Aging_Newbie · · Score: 2, Interesting

    Why are cable companies giving away service to compete with dial-up? Why aren't cable providers overloaded with customers?

    The answer is two-fold -- first of all, a dialup delivers more than my desired quantity of spam and the content-rich sites I desire to see at very low cost.

    I think the broadband market is saturated because there is no compelling and inexpensive content to be had via broadband.

    Finally, competition is only healthy when there are competitors. If we lose the telecom services then broadband providers can get all the revenue and deliver shoddy service at high prices. I say let's keep telecom companies healthy until they are redundant.

  64. Above poster is a troll, and I'll bite... by danro · · Score: 1

    McDonalds cost an insane amount of money. It cost $15 for a Happy Meal.

    Oh please! You are either lying, or was severely ripped off.
    I am Swedish, and there is a lot to say about this country. But the parent post seems rather trollish...
    I mean, $15 for a happy meal for christs sake!

    As for comparing New York with a city with roughly half a million people. Well, that's just plain stupid.

    I will leave the rest of your troll uncommented, as it is not worth the time. I've already bitten and I hope you are satisfied.
    Enjoy your $15 Happy Meal benzapp, and don't let people sell you any more bridges!

    Btw. Gotenburg really is a dump, but that's just my opinion.

    --

    "First lesson," Jon said. "Stick them with the pointy end."
  65. Re:Privatize them! by Rich0 · · Score: 2
    While I agree that there has to be a balance (your example about a poor child not getting an education is a good one), I do have an issue with the statement:

    Would there be any incentive to have a step down station in bumsville, nowhere?
    My issue is this - why should I have to pay for a substation just because somebody wants to live in bumsville? (I assume you are talking about a substation serving one or two houses located remotely from anybody else - not one serving a slum with 5000 families living in it.)

    I submit that if people had to pay to be wired up, they would think twice before building a house out in bumsville in the first place.

    In America houses tend to be dispersed all over the place due to cheap transportation. In Europe they tend to be clustered due to high gas costs. In this case, the gas cost is artificially imposed, and I do not agree with this. However, in cases where costs are genuine (such as running 300 kV lines out to the middle of nowhere) I think that people should be given incentive to cut costs. When people are shown the true costs of their activities, they will make choices to make the most efficient use of their resources - saving both them and the provider of those resources money.

    Now, if bumsville is the site of gold and oil deposits and it makes sense to build out there, then whoever is doing the building would gladly foot the bill.

    A sense of entitlement is dangerous. We should definitely give people opportunities to get out of circumstances that are BEYOND THEIR CONTROL (such as a child born in a poor family), but we have to preserve incentives for people to be innovative and to make wise choices.
  66. Not all of Europe. by danro · · Score: 2

    In some places in Europe (for example Sweden) the licences was handed out for free to those who promised to actually deploy the network the fastest and widest.

    Stupid companies made stupid promises, and though they never paid a penny for the licences they still demand a bailout from their own completely voluntary promises from a few years ago.

    Hopefully, the governments in those countries will just sit back and let the whiners fail. They dug their own hole, and now they get to sit and sulk in it.
    Their places will be taken by the more realistic telcos, that didn't promise the princes and half the kingdom for a license and because of that are much better of now.
    They can always buy their network from the loudmouth companies when they start to bleed.

    This is a great example of how things should work. The people get a network, the smart companies trive and the stupid fail.
    A little darwinism for the corps.

    It's a sweet irony that the same companies who are now begging for a bailout are the same ones that used to be the strongest opponents to government involvement in the 90's.

    --

    "First lesson," Jon said. "Stick them with the pointy end."
  67. What's their angle? Free Spectrum? by n1vux · · Score: 1

    The call for unlicensed spectrum allocations in the open letter may be a clue to what the letter-writers think the answer is ... unfettered competiton for last mile would benefit firms poised to play there.

    Fast failure, yes; and that should apply to firms who overpaid for 3G spectrum as well as those who over-invested in glass or POTS. And for HDTV. But free access to unlicensed spectrum for all? Expand bluetooth vs WiFi until it interfers with the ambulance radios? I don't think that's a good idea.

    internet and tech industry pioneers ? There may be some second tier ISPs in the list, but Frankston (Bricklin's co-inventor of the original spreadsheet program etc) is the only pioneer I recognize in that list.

  68. Re:Privatize them! by Anonymous Coward · · Score: 0

    Yeah if these busniess fail before the compietors can pick up the pieces then where are the couple million people who work for the telcom companies going to go. Im not sayinng we should prop them up but at least try to push them in the right direction. You think all the little telcom compietors can pick up the slack in a multibillonare arena i think not. If anything cable should be pushing for the internet. That would push the telcoms to become real compietors with out the telcoms losing there customer base.

  69. Libertarianism by any other name by JonnyCalcutta · · Score: 1
    libertarian Pronunciation Key (lbr-târ-n) n.
    One who advocates maximizing individual rights and minimizing the role of the state.

    anarchism Pronunciation Key (nr-kzm) n.
    The theory or doctrine that all forms of government are oppressive and undesirable and should be abolished.

    As the previous poster suggested, in either case its survival of the fittest, or the law of the jungle if you prefer. Just remember this warning when you're lying in the gutter being butt-fucked by AOL/Time Warner and the local warlord at the same time.

  70. Re:Environment by JonnyCalcutta · · Score: 1
    Well let's just compare the environment in countries that free economies vrs the command driven economies which I believe have lately been experimented on in the former Communist countries.

    Because they are the only two choices?

  71. Bravo by DesScorp · · Score: 1

    I very much enjoyed your post. I don't agree with all of your points, but you nailed the gist of it: anarchy is NOT a reasonable form of government. It's tyranny in that it's the law of the jungle replacing the rule of law. It never ceases to amaze me how one man's wasteful program is another man's vital public service. I think that, overall, the Founders were pretty bright guys. And if they wanted EVERYTHING to be dictated by a market, there would be no postal service, no census bureau, no govermental services at all. They didn't go that route. I'm a rabid capitalist, but I recognize that in a civilized society, some things should be publicly available to all. You can debate what they are, and at what level services should be provided, but it's foolish to just say "let the market handle it".

    --
    Life is hard, and the world is cruel
  72. Re:Privatize them! by #!/bin/allen · · Score: 1

    I live in rural Tennessee. You say we shouldn't be allowed electricity. Should we be allowed doctors? Or should only the people who can afford them be allowed? How should we deal with people who get comunicable diseases, but can't afford a doctor or treatment?

    Should we have schools? We can see what poor quality schools have done in the "inner cities". Smart people abandon their neighborhood or go into the drug trade and other criminal enterprises where they can use their gifts to get ahead.

    Natural selection is a great principle in the long run, but most of us don't live in the long run. In the very short run, it stinks. I'm glad my better armed neighbors don't see me as a possible source of food for dinner tonight.

    Increasing my access to modern infrastructure improves my chances of adding to the common good. I may not pay that investment off for a long time or at all. Or I may invent a clean fusion motor or [add your favorite innovation here] tomorrow. And if I do should I share with the guy who wants to take my electricity away?

    We need to find a happy medium.

    --
    sed 's/commun/terror/g' mccarthy > bush; sed 's/terror/saddam/g' bush > bush_wacked
  73. Understanding Objectivists by FreeUser · · Score: 2

    Indeed - you only have to look at the fine examples of capitalistic ethics provided recently by companies such as Enron, Worldcom, Global Crossing etc to realise how unnecessary government regulation in the free market is.

    You are citing real world examples. That isn't fair.

    Objectivists have based their entire philosophy on Ayn Rand's fictional novels, of which The Fountainhead and Atlas Shrugged are just two. This is in contrast to other schools of capitalist, socialist, and even communist thought, which, however flawed they may be, at least have insight enough to cite serious academic studies as the foundation of their ethos and philisophical views.

    Does this mean a world view based upon a fictional work is false, or one based upon a scientific or academic study will yield better results? Not necessarilly, any more than we can know with certainty that science will yield a more accurate understanding of the universe than religion (of whatever flavor) will.

    However, the vast majority of evidence is that science does yield better practical results than religious dogma, and rigorous academic studies more useful insights than works of fiction.

    Having said all that, in Ayn Rand's defense (and I say this despite disagreeing with many of her assumptions and rather myopic views on a number of subjects), she was nowhere near as extreme as many of her adherents.

    BTW - When I lived and worked in Germany I made two interesting observations:

    1. German taxes were not significantly higher for middle and upper-middle income people there than they are in the United States, despite their having an excellent social net, including a form of socialized medicine (socialized via a strictly regulated insurance industry and policies paid for with public moneys for those who cannot afford the premiums), and

    2. The healthcare I was provided there was vastly better than what I have in the United States, despite having one of the better PPOs currently available. The American system appears to be designed to subsidize high-end medical procedures, available generally only to the very wealthy or very well insured (two groups which are quickly becoming synonymous) through vastly higher costs for standard medical procedures (like getting a checkup or an allergy shot).

    We in the United States pay three times as much for our less adequate healthcare than the rest of the industrialized world does for the "less effecient" socialized healthcare -- a fact which should put to rest once and for all the myth that the free market is always more effecient than a public works equivelent. In the area of healthcare, where the customer is captive by nature of the fact that without it they will suffer and possibly die, clearly the power of the customer to choose, or reject unacceptable conditions of service vs. the power of the provider to coerce or set their own conditions, is so degraded as to make a "free" marketplace in any meaningful sense impossible. This leaves corporate oligarchies and trusts vs. socialized medicine as the two real choices we face, and the experience of the entire developed world, outside of the united states, indicates that the socialized approach is vastly more effecient and effective.

    --
    The Future of Human Evolution: Autonomy
    1. Re:Understanding Objectivists by Zeio · · Score: 1

      Show me some facts and figures to support you claims. I do not dispute your personal observations about healthcare in Europe. How was it outside the cities? Did you bother to look? I know the infant mortality is slightly lower and the life expectancy is slightly higher, but that's coming from a country that 50 years ago had no qualms with stuffing millions of people in ovens.

      Anyways, most of the medical technology is coming from here, and people flock to the USA to cutting edge, "the best of the best" medical care, and whatnot. Sure it costs money. I'm not aware of a better place in the world to deal with cancers, heart diseases - if you can pay for it, or you get on a waiting list, but its here. I don't see rich Americans flock to other countries for "good medical care."

      And judging on what most Canadians say about social medicine, I'll take my chances with American PPOs, I have little faith in western medicine, sure they can stop the bleeding. But fatal illnesses are a death sentence everywhere. The USA just capitalizes on it.

      Want to live longer? The most high-aged demographic is Japan, the fish eating green tea drinking Okanawans. Is the economy collapsing under the huge stress of lots of old people around - sure is. Should we young ones sacrifice our disposable income in the better part of our lives to subsidize dying people? I don't know. If you are young, you are inclined to be austere towards old people who haven't properly prepared for their own death [a guaranteed eventuality] and somehow magically old and even though it happens to everyone and we all get old a decrepit its a sudden surprise and now that I'm old everyone must be responsible for me because its the right thing to do.

      Well, in case you haven't noticed, the third world is growing, the first world is shrinking. I can't afford children, not here, not Germany, not anywhere, and I'm making over 3 times the average. Is part of this due to subsidy of old people? Sure is, 7% of my pay gone for people who didn't prepare for death. Do I expect to see any of that 7%? No, because of pseudo socialism from FDR, I pay for other people's retirement and I have to pay for my own, without the prospect of subsidy. . If I was bought long term bonds/bills for all that money I put in and couldn't touch them until retirement would I have a million in the bank already? Yes. It's a corrupt slush fund. If there was a lean mean government, this wouldn't happen. And if people have more disposable income, it has been proven that in times of great economic prosperity and low taxes philanthropy goes way up. Socialists and Volvo-bike-path-Liberals talk about high taxes and responsibility, but would they care for their own dying again parents or stuff them in a nursing home? No, they get nursing home every time. They just find peace with themselves because they washed their hands of the problem by voicing out against the machine or voting for some corrupt idiot that made people vote for him single issue.

      I have also heard in Engine there are statues of limitations on medical care (same as lifetime and policy pay out limits in the USA). If you are over a certain age and you get dialysis for example, you can reach a lifetime social limit, and when the society's obligation is met, if you don't pay for dialysis, plug pulled, see ya.

      I can't be convinced that if I really, really needed great care for a really hard to survive illness I would want to go anywhere but the top hospital in the USA.

      Christopher Reeves finger now moves. He has a broken neck. He is a rich man, he has done well, and he is giving large sums of money to cure paralysis. I refuse to believe philanthropy doesn't exist in a pure capitalist system. It's the fake socialist stuff that causes issues.

      Do I trust the medical system here? No. Do I base my opinion about the system on one doctor? No, when I have a problem, I see two or three doctors. Some of them suck, some of them do great. Do I think every patient should get an MRI for every hospital visit? Yes! Is that going to cost something? YES! But here in America, I still have enough disposable cash to get the MRI, a full body scan, head scan and virtual colonoscopy is about $1000. Do they give MRIs and complete blood work if you are "paranoid" in your said country? I have been paranoid, I'm somewhat of a hypochondriac, and I have gotten complete blood work and an MRI at little cost to myself. The peace of mind is great.

      I know from a friend who came from Europe what happens. Ever sniffle, sneeze cough drip-drop gastrointestinal pain costs the medical systems in the EU lots of money. Subsidized health care and social security is a huge portion of the budget in the EU nations. Do I see people here trying to find ways to retire in Sweden and burden their youth with their age and "retire in style" and get all this free shit? No. In fact, I see a lot of people here who love life, like Christopher Reeve, who advocate for a cause, and raise philanthropic (read: op in feel good money not forced tax money) interest in a cause for the love of life and liberty.

      I just don't like the idea of some person's conception of the ideal being forcibly manifested. I may live in Canada, New Zealand or somewhere else someday as I am the firm believer in "don't like it? LEAVE." I haven't found a compelling reason to leave yet. I know Bush sounds silly, and Ashcroft is a fascist, and American Geopolitical policy isn't the greatest (we are not good, nor evil just as no other countries are good, nor evil, they just *ARE*, the exist, and they have a survival instincts and playing fair is back seated to survival), and the US-Reichstag may have burned, or it may have not, but if the Reichstag has burned, metaphorically, then I will live out my years somewhere else. But not for health care. For freedom.

      Now don't believe the hype about the US either. If you are not fucking stupid and lazy, you can pick up a decent job for the government or an education system, with awesome retirement plans and health care, maternity leave, continuing education, education subsidy, you name it, the welfares for the taking. I find it amusing that most people who leverage this best are smart, or not from this country - they immigrate here, and they *never* leave [not that I have seen], and most of my proximal friends right now are foreign. But seriously, government jobs here are such government cheese, and if you like the Socialist way, work for the government. It's really not hard. Every single DMV, Police Station Employees (not the cops per se), City Hall, Court Clerks, Libraries, Military personnel, Government Contractors, tax exempt non profit companies and generally anyone who isn't working for a for profit business are living the great life - and having brains and working there are not mutually inclusive.

      --
      Legalize the constitution. Think for yourself question authority.
  74. Re:Privatize them! by Anonymous Coward · · Score: 0

    > Government subsidies are bad.

    Riiiight. The streets around your house will look awful funny when only 70% of your neighbours pay their road construction bills.

    I really had to cringe when I saw this response rated a 5. Government-funded road projects don't fit the definition of "subsidies" very well -- they can be more accurately described as the taxpayer simply getting one of the services that he paid for.

    A better example of a "subsidy" is when the government pays a farmer for not growing crops. Here, it's much harder to make the case that the farmer is simply getting a service that he paid for with his taxes.

    This "5-rated" response was a heavy-handed smackdown that missed the mark, due to a lack of thoughtful contemplation by the author.

  75. Re:Legitimate reason for bailout? sugarbitch !! by Anonymous Coward · · Score: 0
    CLITORIS CHOPPING ADVOCATE! Long time no see Sudanese genital multilator supporter! ;p How are you October_69th? You piece of fucking loser shit. I know you and your types. The communist is back. I know you and how you want to purify yourself on the alter of intellectual debate. I know you think you are smarter and should think for everyone and democracy is bad and that we should atone. I know you do nothing and you are a professional academic and that is sadly a contradiction in terms. I know no one has ever benefited from your work, you don't have to prove yourself, and that you stand on the shoulder of many men with a crushing boot as do your 1st world friends. We all do. But somehow you get absolution from being evil, you are better; you are a deeper thinker and are somehow not a party to this evil dance of greed and decadence. You fucking anti right wing types, by no mean would I condone fascism, but ultra left wingers and ultra right wingers are religious zealots. They wash themselves of blame and use human sacrifice to prove they are right. You are a fear monger, and a naysayer. But Red October_30th, you never prove yourself. You hide in school, hiding from the proving grounds. You enjoy life; you expect to live 3 times longer than most people on earth. You think you want it equal for everyone one, but you will give up none of the accoutrements and amenities of the 1st world lifestyle, while you spit venomous remarks at your enemies the right wing establishment, but you theories about cabals of men raping the world, well, whatever you theorize about you are a party to so fuck off. You vile scum. I wanted to ask you how it feels to put the diapers back on a baby you just raped? Look at the communist left wing Bund, rules by intellectuals, and this lead to the power base of V I Lenin to crush the life out of hundreds of millions of people for almost a century. Real good left wing establishment, the soviet empire. You are such a clouded thinker. Democracy may not be the best, but mobocratic revolutions lead to thought policing, and capitalism breed a daily voting system that the stupid and smart all partake in, voting thousands of times a day with your wallet. And those who detract from such a system are generally inferior. They claim to not being able to get a break but they don't try. Like you don't 'October,' the pussy behind the veil. You don't like a system which makes you look pathetic, you never published, you don't have a patent, you never helped anyone, you only make enough to feed yourself and you greedy needs, you will never affect another man. And charity? I have taken many under my wing and show them how to fish metaphorically whenever I can, but your bourgeois Volvo driving liberal asshole don't want to take the time out of your day to teach a man to fish, you want the government to do it all for you, and raise your kids, and pay for your health while you suck down cigarettes and blame it on the government and evil business. Think of WW2, think of all the people who had no choice and died. 55 million people dies, and more would have had not the biggest evil capitalists come in a kicked fucking ass. And that we did. USSR, 11 million dead. Germany 4 million. Japan 1.4 million. The USA? 300,000 dead. We kick fucking ass. We saved you and your fucking little pit's neck. Now that the average age of the world is half that of how many years have passed since then most of you liberal idiots have forgotten that you and your Volvos and you free thinking and all that shit would be dead, and you'd either have grown up in a Hugo Boss Hitler youth suit or in a stupid piece of shit clothing made by the USSR with seams falling out, wishing for blue jeans.

    I was in USSR in 1991. I doubt you've ever been, and even during glasnost/perestroika the place was a fucking dump. Go to Moscow now, the mafia does a better job than left wing commies. And that holds true. Left wing thinkers are lower than the mafia because they justify everything.

    I can't believe you sit on your pulpit, unproven, unmarried, and not responsible for anyone but yourself allowed to masturbate yourself all day long, with the implements of greed. A full stomach, an easy non labor life, DVD players, a fucking computer and an internet connection. Then you come out and kick the balls of the very engine that provides everything that is real to you. Everything you look at is a product of entrepreneurship and genius - both. Sometimes, when a guy like Howard Hughes has both, the results are rather interesting, but most of the time the innovators and the entrepreneurs work hand in hand to deliver, something you were never a part of because you are inferior and you hide in academia unproven and spout your vicious epithets from your perch where you frothing rabid thoughtless speech wafts into the air largely unheard, your snarky self congratulating style is hated by all. I want to kick you in the testicle sack and sodomize you with a broom handle. I want you to feel the burning pain of something in your ass. That is how the 3rd world feels every day, but you claim to know nothing about that ass-pain. But you are a cause of it. You vote with your presence in a society. You are a part of the collective, and if you think those less fortunate consider your defense of them, they are too fucking STUPID to even differentiate and advocate from an evil oppressor. You mother-fuckers walk a thin line. The line is between stupidity and insanity.

    So now the anti government anti free society lunatic and terrorist supporter comes to Slashdot to troll, to quip and chime in with his thought policing. From the Bund, the communist union left wing shop. Even Albert Einstein, god bless him, was a member of the communist party. He would have been a highly intelligent accomplished but completely unfit for public leadership - which is why he largely stayed out of politics. But without entrepreneurship and a free society, the money and equipment to verify his theories would have never come to pass. Why did my Einstein live in the USA, in Princeton NJ? Why not Russia? When did Russia EVER beat the west to proving and or utilizing Einstein's theories? Well, you see left wing death organizations like USSR and the EU, which is turning out to be a force of evil with their anti Turkish and Anti Israeli racist elitist attitude, is a similar fucking hole. A bunch of decadent, self fucking mental masturbatory mother fuckers Oedipus slime molds who sit around and spout trash while their own racist anti entrepreneur system crumbles and the third world is as pissed off as ever.

    You god damn bitch, why do you come here and shit on these threads, you defecate and eructate forth such crap with your snarky one liners and you deprecated method of thinking. You communist friends are gone, the lost. Fucking Moscow is a better capitalist than you. And if you think that legislated mediocrity, world "equality (doesn't exist as all humans are equal in the eyes of law but in terms of aptitude and usefulness to others, there is no equality, it's a gigantic strata)" is something that people want, fuck you, no one wants it, they all want everything from themselves, as you do but you deny it. I hate you, and I want to kick your testicles.

    The baby-fucking pedophile death bringing terrorist cunt mother fucker Oedipus Rexxed out communist idiot with his Volvo and his bike path is back. He is a rapist, a terrorist, and killer.

    DO not trust this man, he has been known to say things that lead to the justification of rape, mass killings, thought policing, societal cleansing. He is a typical proto fascist/communist/dictator, and the far left and far right meet at the bottom of a circle where Red October_30th is positioned.
  76. Let's not forget why Worldcom collapsed by AnalogDiehard · · Score: 1
    Worldcom was the victim of unscrupulous accounting practices engineered by corporate corruption. Some of the top execs have already been indicted and more heads will roll.

    Why should the federal gov't give taxpayer $$$ to a bunch of crooks?

    --
    Eternity: will that be smoking, or non-smoking? I Corinthians 6:9-10
  77. Real Market Forces by gnovos · · Score: 2

    Like health care? "Sorry, sir. I know there's a gaping wound in your skull and that it hurts, but your credit is no good here. Please go away and die outside in the gutter with all the other poor people."


    Give me a second to go call the media so the people in this town can get all riled up and come and firebomb your hospital... oh, or what were you saying about treatment?

    --
    "Your superior intellect is no match for our puny weapons!"
  78. Re:Privatize them! by RobinH · · Score: 1

    A better example of a "subsidy" is when the government pays a farmer for not growing crops. Here, it's much harder to make the case that the farmer is simply getting a service that he paid for with his taxes.

    It would be hard to argue that this is what the original poster meant by privatization, though. Farmers are privatized, but they get government subsidies.

    --
    "I have never let my schooling interfere with my education." - Mark Twain
  79. Cure little partisan troll by Featureless · · Score: 2

    Was I being unfair to someone? What an interesting debate that would make.

    "sarcasm"

    Why don't you read what happened under Clinton's FCC and then, when you have any idea what you'd be getting into, come back and drop a line.

  80. Oh, my aching back, oh, my empty wallet by Anonymous Coward · · Score: 0

    Telephones systems are like electric power systems: a "natural monopoly." As in the electric power industry, if more companies are going to get in the game and make money, then there has to be more money available to them. The way the industry will get more money is by either expanding the market to include more customers or charging the existing customers more. The phone system is like the power system in that nearly everyone is a customer. The market is completely saturated and the number of potential customers is insignificantly small. This means that for companies to realize the opportunity to make money, they will be extracting more money from each consumer.

    My phone bill is high enough now.

  81. Re:Privatize them! by Andyrew2000 · · Score: 1

    "We all think everyone has a right to an education, so we constructed systems to give everyone access to those services. We also think everyone should have access to clean water, so we have municipal water utilities."

    Education and clean water are NOT fundamental or basic rights. Rights are concepts that flow from man's nature as a rational being. The rational part of man's mind requires certain conditions to function--namely, the freedom to exist (life), the freedom to act (liberty), and the freedom to the products of those actions (property). If these conditions are denied, man lives on the level of a beast. If these conditions are supplied man can flourish. All true rights can be traced back to these fundamental rights. For example, you may note that "Freedom of Religion" is not specifically enumerated in the three fundamental rights, but it is, in fact, a corollary of liberty, or the freedom to do as one pleases while not infringing on the liberty of others. In order for the system of rights to be self-consistent, there can be no right that conflicts another. Indeed, when properly defined, none of the fundamental rights do conflict. Because they belong to all men, it is implied that my right to act as I please cannot include forcing you to act in a certain way. The function of government is to maximize the protection of these fundamental rights.

    Now that rights have been defined, it is easy to see why there can be no fundamental "right" to education or clean water. Schools and water networks cost money and resources, and those resources must come from somewhere. If everybody has a right to an education weather they have earned the resources that the education will cost, than such a "right" would necessarily imply the violation of a fundamental right-property. In fact, the very idea that a person has a right to something that they have not earned is a perversion of the ideal of justice.

    Now that I have said all this you may think that I am opposed to public education. I am not. I justify public education as a form of national defense. One of the biggest threats to freedom are large groups of people being irrational. Because of the democratic nature of our government, if large segments of the population choose not to think, than individual liberties are threatened. Racism is such a phenomenon. Public education is our defense against this threat, and its goal is to empower and nurture people's ability to think.

    -Andrew

  82. Telephony is not equal to internet. by Anonymous Coward · · Score: 0

    Acknowledge that non-Internet communications equipment, while not yet extinct, is economically obsolete and forbear from actions that would artificially prolong its use.

    This phrase shows the lack of knowledge of the writers of this paper of the difference between telephony and the internet.
    Internet is an infrastructure that will route a package to a certain destination but without any guarantee. The package can even be lost. On this a protocol is made to allow connections and resending of packages when some are lost (=TCP). Therefor no guarantees can be made of the delay and bandwidth of such a connection, especially when different system of competitors need to be crossed.
    Telephony on the other guarantees a maximum delay and a fixed bandwidth between two points once a connection is made. Even for connections between competing companies.
    Therefore forcing all new equipment to be internet equipment is just going to reduce the customers experience.

  83. Re:Privatize them! by machinegestalt · · Score: 1

    The concept of intrinsic rights is unfortunately just an academic idea. Life has no respect for rights. Your only right is what you have the power cause. If you get eaten by a tiger, or bitten by a coral snake, or sucked under by an eddy while taking a bath, so sorry, right to life, uh huh. Thus the only old pithy maxim, might makes right. It's 100% true. The government does lots of things which are violations of your "rights" but because they have the might, the act becomes "right" to use the tired play on words.

    Now, it's not FAIR for me to just walk up to you and shoot you in the face, and so the government tries to prevent it (though really our system of justice operates ex post facto) so what happens is you end up dead.

    Is it fair to be punished for something you're not responsible for? Is it fair to reward someone for something they're not responsible for? Thats exactly what happens when you deny education to a child born to a poor family.

    This whole philosophical idea of intrinsic sacrosanct rights is such bullshit. It's been latched on to by objectivists to prove an argument, but what really has happened is they've created a big petitio principi.

    Goes something like this:

    "we have the right to a capitalist democracy"
    why?
    "because freedom is a right"
    why?
    "because we live in a capitalist democracy"

    As societal entities we can of course come together and dictate what we believe is fair and unfair and pass regulations based on that. This in fact is exactly what the US government does. If you dont agree with your elected representative, you can either vote for someone else and live with the decisions that person makes or kill them, your choice.

    I get frustrated that the voices of ignorant media puppets count to the same amount as me, and I get doubly frustrated that you can't even count on your elected representative to do what he or she espoused during a campaign. Nothing I can do about it really, but choke on my morals or swallow them and take advantage of people to increase my personal wealth and prestige.

  84. Re:USA != capitalism (edit) by machinegestalt · · Score: 1

    Oops, forgot to mention that the countries with a higher GNP are as measured PER CAPITA, so please don't come out of the gate with a stupid flame on my prior post.

  85. In my day, sonny by machinegestalt · · Score: 1

    Yeah! That's right! If I wanted to talk to someone I'd drive to see them!

    Er wait, if god wanted you to get there fast he'd have given us wings!

    In my day sonny, we had to walk fifteen miles in the snow, uphill, both ways, just to order a delivery pizza!

  86. The Enron anti-free-market argument by PaxTech · · Score: 2
    Indeed - you only have to look at the fine examples of capitalistic ethics provided recently by companies such as Enron, Worldcom, Global Crossing etc to realise how unnecessary government regulation in the free market is.

    A lot of the problems with the recent Enron and WorldCom, etc. scandals were caused BY government regulation. That is, government regulation that was being written by the very companies it was supposed to control.

    Corrupt and biased regulation is far, far worse than no regulation at all. The Bernie Ebbers and Ken Lays of the world may claim to lay their alllegiance at the feet of the free market, but a system where the ground rules are written and rewritten by the biggest players to ensure their own profits is far from a free market.

    In theory, government regulation would be fair and impartial to all competitors. But then, in theory communism works too. The real world is quite a bit different.

    --
    All movements for social change begin as missions, evolve into businesses, and end up as rackets.
  87. Re:Privatize them! by Anonymous Coward · · Score: 0
    I suppose education should be completely privatized too. That way, the only chance a child from a lower economic class has to make something of themselves will be torn away because their parents can only afford to choose two of these three alternatives: 1) feed them 2) clothe them 3) educate them.
    I choose options 1 and 3 Fat, Naked and Smart.
  88. Re:Privatize them! by Andyrew2000 · · Score: 1

    The concept of intrinsic rights is unfortunately just an academic idea. Life has no respect for rights. Your only right is what you have the power cause. If you get eaten by a tiger, or bitten by a coral snake, or sucked under by an eddy while taking a bath, so sorry, right to life, uh huh. Thus the only old pithy maxim, might makes right. It's 100% true.

    In your examples you showed how just because morality says something ought to be does not actually make it so. The proper way to summerize this would be "right does not make might." The conclusion that "might makes right" is completely unwarranted by your evidence.

    The idea that "might makes right" is, in fact a lie. Abraham Lincoln once asked someone, "How many legs does a dog have if you call the tail a leg?" The person replied "Five," and to this Lincoln said, "Wrong. Four. Calling a tail a leg doesn't make it a leg." Morality and Rights exist independently of the actual state of things at a given time and dictate the direction toward which men ought to strive. Without morality, man is reduced to following his whims like a beast. The consensus might determine what people will actually do, but the right thing to do will remain the same weather people choose to recognize it or not. What if the ad hoc morality of our society dictated that it was OK for me to kill you, and the only thing that kept me from doing so was my own recognition of a higher moral standard? Would you still be trying to convince me that morality was a pointless philosophical exercise then?

    "we have the right to a capitalist democracy"
    why?
    "because freedom is a right"
    why?
    "because we live in a capitalist democracy


    The answer to the question "why is freedom a right" is not "because we live in a capitalist democracy." Once again, you rely on the false premise that "might makes right." I would say in response something like "because man's rational mind requires certain things to function, and one of those things is freedom."

    Is it fair to be punished for something you're not responsible for? Is it fair to reward someone for something they're not responsible for? Thats exactly what happens when you deny education to a child born to a poor family.

    Actually, its not. The right at stake is the right of the creator to dispose of the wealth that he has earned/created as he sees fit. Not surprisingly, the rich person has decided to share his wealth with his children, and that is his right to do so. By not receiving that which you have not earned, you are not being "punished." Although the rich child is rewarded just for being born in the right family, morally you cannot stop this because to do so would violate the parent's property rights.

    This whole philosophical idea of intrinsic sacrosanct rights is such bullshit.
    you have yet to present any evidence that this is the case. Your "circular agreement" example isn't really created by the idea of intrinsic rights, but rather by the assumption that might makes right. Your false dichotomy of "fairness vs. morality" really is quite pathetic. What is fairness if it not derived from justice, which comes from morality?

    -Andrew

  89. I agree with the conclusion, but not the reasoning by geekee · · Score: 1

    I agree the govt. should not bail out the telcom industry. Just let the mismanaged companies go chapter 7, and allow new players to buy out the infrastructure. The reason for the telecom problem is not due to using obsolete equipment. The telcom market INCLUDES the internet and all high speed data communications. Look at companies like JDSU and AMCC, that design 10 Gb transponders and supporting chipsets. They are part of the telecom being hit just as hard as long distance carriers. The telecom industry is in a slump because the infrastructure is incredibly expensive, and not enough money was made through selling services such as long distance and internet access to repay the loans. The current telephone technology will be obsolete some day, but that isn't the reason for the current telecom crash.

    --
    Vote for Pedro
  90. Re:Privatize them! by Anonymous Coward · · Score: 0
    Railtrack - the UK privatised rail company that recently declared bankrupcy, leaving the UK govt with the options of a bailout of closing down the rail network. They chose the bailout. The sucessor company (Network rail) is a not-for-profit co.

    A few points here:

    1> You omitted a third option the UK government could have chosen: auction the rail network.

    2> Bankruptcy is the successful removal of failed management. You are confusing the failure of a particular private company (Railtrack) with the failure of privatization as system for instituting managment. In fact, that privatization allows for bankruptcy is an advantage; If the original mangangement team had been not private but public, they would likely still be there doing the same unsucessful job of running rail network.

    You believe that privitization fails because it permits bankruptcy. Wrong. Privitization works becasue it permits bankrupty.

    3> You say that the UK govt. bailed out Railtrack and you claim that Railtrack was then replaced by Network rail. You seem to have no understanding of what a bailout is. If there had been a bailout, Railtrack would not have been succeeded. It would have been bailed out; it would still be there, in place, running the rail network. Is your self contradiction not obvious?

    4> A private for-profit company which does a poor job of managing the rail network is replaced by a private not-for-profit company which manages the rail network successfuly. So a>privatisation works to tranistion in a sucessful managerial arrangement. b>a private company now successfully manages the rail network.

  91. LOL, such an earnest Republican apologist by Featureless · · Score: 2

    Ah, a republican AC troll. So pleased you guys still take the time to respond "personally." You're an audacious liar, so much so that it's obvious to me you wont benefit from attention to your little fantasies, so I will keep my responses brief...

    Reaganites were notorious cost cutters

    Like saying Nazis were notorious for their hygiene. Actually they were notorious deficit spenders; oh yeah, and the Iran/Contra affair was rather notorious too... The only costs they ever cut were in civil rights enforcement. MILSPEC was one way they tried to cover the procurement corruption, laughable, really. The kickbacks, and who profited, even made the news (the "Ill Wind"). Oh yeah, you drink that water, don't you.

    The president has no recollection...

    Electric utilites were not privatized, they were degregulated

    Actually, you're wrong again, moron; even your own propoaganda machine doesn't split that hair... You're really funny - I love that you guys are still trying to find cover on this one - you shut off the lights in California with a fake shortage - and the fact got covered on CNN! Well, the show must go on, I guess. Please, read a summary of a rational position on Calif/Enron. You know, the utility privatization scam is widely documented enough now that almost everyone knows about it... you might want to find another dodge, or just pretend you missed it altogether rather than respond with this drivel.

    NorthPoint goes out of business and this is proof that Michael Powell is "notoriosly corrupt".

    Yep; since you're obviously ignorant, or hoping we are, I'll give you the executive summary: to the RBOCs, Northpoint was a "competitor" and a "client" at the same time. Like most CLEC's, it was brutally abused via service sabotage, but the deathblow was some clever Verizon fraud. Then the bells made a huge show of pulling the plug on 12 hours notice, creating the most widespread, massive and prolonged (months?) downtime in the history of the commercial internet; millions nationwide were affected, including MSN's customers. The message was loud and clear: Don't deal with CLEC's. You might get shut off. Federal regulators? Off somewhere sending faxes from the beach, approving massive RBOC mergers while counting their bribe money.

    You know, Verizon settled Northpoint's fraud claim for 175 million dollars...

    So if beef prices rise

    Slow down there cowboy. Telecom is regulated; the RBOC's prices and service quality aren't based on how well they wrastle their cows, they're based on how good their oversight is. But of course, you knew that, since your whole point here is just to make disingenuous comments that sound like arguments. I don't have to convince anyone Verizon is outrageously overpriced or offers abysmal service - any professional whose dealt with them knows that... Now that he's overseen the final days of behind the scenes sabotage of TA96, Powell has actually gone on record opposing the CLEC concept... backpedaling on the entire idea of competition in the industry. As I say, notoriously corrupt.

    So you seem to believe that the proper role of government officials to pick winners and losers in the marketplace.

    Thank you - I could have just accused you of having no idea either what I was saying or how the post-TA96 telecom industry works, but you've made my point better than I ever could.

    You don't have any specific allegations of wrongdoing.

    Thank you - I could have just accused you of either being senile or blatantly ignoring parts of your screen, but you've made my point better than I ever could.

    just gratifying his own political bias

    This is conservative dogma 101: Any attack is a partisan attack. Any criticism is a political bias. Unfortunately the facts dramatically point to Satanism. But I'll settle for cronyism and nepotism. And to your ignoring all the evidence in a goofy attempt to paint these clear and egregious failures as something other than grounds for criticism... poitical bias? You're gunning to have your headshot next to the definition, aren't you?

    I'm sure you were out there dumping offal on dems and their appointees, too. At least there we have some common ground. It's not that dems wouldn't deserve your hypocritical contempt, just that you usually want to have some better reason for your arguments than drooling-fanboy-sports-team-loyalty.

    I am not trying to shut down criticism of Bush

    Yeah, right, AC Troll, you're just a freelance righter of wrongs, who gets 100% of their facts wrong and has no idea what they're talking about on any of the issues, but sure is fired up "bigtime" that someone may have disrespected your president and his friends.

    Hail to the chief. Hit another one for the gipper, ACTroll! I'm waiting! And you can add why you don't log in - modded down too often?

  92. Re:Privatize them! by machinegestalt · · Score: 1

    You touch on the idea of the social contract, but you miss the point I'm making: in the natural world, no such contract exists. When you say that someone has "rights" you are making a value judgement, and applying it universally (fairness is a local value judgement and says nothing universal). Are the laws and rights synonymous? If not where does your justification for rights come from? There is no foolproof moral system, and your statement about "the right thing to do existing whether people choose to recognize it or not" seems to me to indicate that you are probably somewhat bigoted in your morality. It's fine if you agree with the pope or kant as far as the morality you use to determine your own personal actions, but you shouldn't extend that to everyone. I am not a moral relativist but I don't believe that any one moral system can answer the question "what is the right thing to do" all of the time.

    If you look at the ACTUAL values this country espouses (which have been terribly subverted by the idea of currency as personal worth) you can see that the might makes right paradigm is really unavoidable. There's a lot of talk about "rights" but what it comes down to is exercises of "might" in the economic sense. The few things which we provide to people who don't have the economic "might" to take them are all obviously provided because they would bring about externalities to the empowered portion of the population. Health care is an example, in order to stop the spread of nasty communicable diseases we have to cure those disgusting impoverished people. Homeless shelters are another, we have them because we don't like to look at the homeless, and we want to keep them away from tourist attractions, and keep them from spreading those nasty diseases. Drug rehab programs exist to prevent addicted users from stealing from or mugging the empowered (since police can't take away that nasty feeling of violation). All across the world the might makes right paradigm shows true despite the claims of "rights". the important difference is that fairness is an empathetic concept, and rights are based upon rational logic. The problem here is that logic doesn't go from is to ought, and those influenced by the aristocratic ideology assume that humans have "rights" as the basis for their postulations. There's no justification for the claim that humans have rights though, you can't get to that in any logical way from the nature of life and the world. Any argument based on the proposition that humans have certain basic rights is going to be unsound. You can get to "that action is unfair" from a couple of simple propositions, and it will be valid and sound.

    My complaint about the circular argument of many objectivists was just that, not a refutation of all objectivist ideas. You can make an economic argument for some of the objectivist ideas, but those havn't been shown to produce an outcome any better, and in fact as it has been stated, the idea of a totally free market is sort of silly, especially considering that a free market is empowered to take advantage of consumers when there is disparity of law. Totally free markets are always going to be perform sub optimally, what is required is not a free market but freedom to compete. Sounds the same, but very different. Adam Smith was not referring to the typical market when he talked about the invisible hand, but rather a market of theoretical perfect competition.

    As far as the people who make the money being able to keep it and choose how they spend it, I have a slight disagreement with that. Life's bounty should be distributed based upon the merit and work of the individual, but few people can claim that their merit was the source of their wealth. Hard work and intelligence by themselves are only somewhat likely to get you ahead in life, and I don't believe in the dispersement of funds based on luck (and nepotism as an extention thereof). The day that luck is no longer a factor in determining wealth I will be first in line to vote for a reduction of taxes for the very wealthy. My main problem with extreme wealth besides the elements of luck and nepotism, is that it tends to subjugate the political system by allowing the advancement of agendas which lack popular support (a very un-democratic notion). I can't yet demonstrate logically that a society based on different precepts would be any better, however, so I respect the fact that the system we have is at least somewhat operational.

    As a side note, please leave the pithy but fundamentally wrong and irrelevant quotes by famous people aside, and argue on the merit of your own logic and knowledge. I also don't appreciate having my assertions insulted when you don't properly justify your refutations and argue with fallacies. I understand nobody's perfect :) I certainly don't claim to be, but that doesn't mean you have a license to be rude, particularly in a condescending manner when you havn't proven yourself superior in any way, and it's completely unwarranted.

    No hard feelings, everything with the exception of the logical impossibility of "rights" is just my personal opinion and you're free to disagree and there's no real way to determine who's correct (probably neither). If you can come up with a valid and sound argument for the existence of universal rights, I'd be happy to listen but be prepared to have it refuted. Rights are a value judgement.

    I'd suggest you read john rawls' "a theory of justice". It's an excellent book and could broaden your horizens somewhat.