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Network Neutrality — Without Regulation

boyko.at.netqos writes "Timothy B. Lee (no relation to Tim Berners-Lee), a frequent contributor to Ars Technica and Techdirt, has recently written 'The Durable Internet,' a paper published by the libertarian-leaning CATO institute. In it, Lee argues that because a neutral network works better than a non-neutral one, the Internet's open-ended architecture is not likely to vanish, despite the fears of net neutrality proponents, (and despite the wishes of net neutrality opponents.) For that reason, perhaps network neutrality legislation isn't necessary — or even desirable — from an open-networks perspective. In addition to the paper, Network Performance Daily has an interview and podcast with Tim Lee, and Lee addresses counter-arguments with a blog posting for Technology Liberation Front."

62 of 351 comments (clear)

  1. human nature by gEvil+(beta) · · Score: 5, Insightful

    As long as companies are involved with some having more sway than others, you can expect them to abuse their position in the name of greed. It's simple human nature. Say all you want about how companies will police themselves or that the market will sort itself out. However, reality has shown us time and time again that this isn't the case.

    --
    This guy's the limit!
    1. Re:human nature by Progoth · · Score: 5, Insightful

      I challenge you to show me an unregulated market where the government doesn't have its hands in it in some way. Go ahead...I'm waiting.

      And WTF? libertarians support the PATRIOT act or unilateral action against sovereign nations? you know some funny libertarians, and I'm glad I haven't met them.

    2. Re:human nature by torstenvl · · Score: 2, Interesting

      Let me know when the average Comcast customer has a vote on the board, because until he can elect a new CEO, your comparison falls flat.

    3. Re:human nature by bmajik · · Score: 4, Insightful

      It's a good thing that the human propensity to seek power and do evil only exists when that human works at a company, and never when that human works in government.

      We're really lucky this is the case, since if someone in government were ever corrupt, they could fine you speciously, jail you without trial or due process, seize your home via eminent domain, or just plain kill.

      --
      My opinions are my own, and do not necessarily represent those of my employer.
    4. Re:human nature by hansamurai · · Score: 2, Insightful

      And the worst thing is that many of those so-called libertarians favor the government in the current individual freedom issues we're having (eg: the Patriot Act) and when it comes to 'impose freedom' to other nations.

      What? Way to build up some straw man libertarians that are completely against everything a small-L libertarian stands for. Those people are simply not libertarians.

    5. Re:human nature by janeuner · · Score: 2, Informative

      I would imply that they [ethics regulations + oversight] are largely ineffective.

    6. Re:human nature by gnick · · Score: 2, Insightful

      And the worst thing is that many of those so-called libertarians favor the government in the current individual freedom issues we're having (eg: the Patriot Act) and when it comes to 'impose freedom' to other nations.

      Umm, what?

      From the Internet Encyclopedia of Philosophy and quoted on the Wikipedia Libertarian page:

      Libertarians are committed to the belief that individuals, and not states or groups of any other kind, are both ontologically and normatively primary; that individuals have rights against certain kinds of forcible interference on the part of others; that liberty, understood as non-interference, is the only thing that can be legitimately demanded of others as a matter of legal or political right; that robust property rights and the economic liberty that follows from their consistent recognition are of central importance in respecting individual liberty; that social order is not at odds with but develops out of individual liberty; that the only proper use of coercion is defensive or to rectify an error; that governments are bound by essentially the same moral principles as individuals; and that most existing and historical governments have acted improperly insofar as they have utilized coercion for plunder, aggression, redistribution, and other purposes beyond the protection of individual liberty.

      Methinks you're confusing Libertarians with some other group. Either that or deeply confused.

      --
      He's getting rather old, but he's a good mouse.
    7. Re:human nature by ClassMyAss · · Score: 5, Insightful

      I couldn't agree more. I'm tired of all economic libertarians saying the market will rule itself despite many examples showing just the oposite.

      The key to arguing for the pure libertarian point of view is that whenever you're presented with an example of the market failing, you figure out some minor way in which it is regulated, and blame that for the failure rather than the lack of stronger protections.

      For instance, if a monopoly becomes abusive, it's not happening because they are unregulated and haven't been restrained from anti-competitive practices, it's because the tax system has made it impossible for smaller companies to effectively compete with the monopoly. Or maybe it's that the minimum wage has increased the cost of the monopolist's labor to the point where they must charge abusive prices in order to stay in business.

      Or if a financial industry falls all over it's ass by making stupid bets left and right, it's not that the industry went wild taking on too many risks, it's that entitlement programs sent them the...uhh...implicit message that they should...lend money to people that will never pay it back..?...yeah, something like that! Maybe. Oh wait, I meant Sarbanes Oxley, err maybe the Fed's meddling...whatever, the specific reason doesn't matter, just say it forcefully enough and people will lap it up!

      It's a neat trick, actually - any time one element of your preferred extremist approach turns out to fail, you simply claim that it's because the whole thing must be implemented at once, and any deviation from that can bring the whole house of cards tumbling down.

      Unfortunately it's also exactly the same philosophical bullshit that Communists have been arguing since their first failed attempts at Utopia. I'm really getting tired of people failing to understand that balance is necessary in all things, including the level of regulation...I even tend to lean libertarian on a lot of these issues, as I don't think much government meddling is usually a good thing, but the tendency to pretend that there are no situations where it's appropriate seems just as deluded as the idea that the government should control everything. We should be pushing to roll back the right regulations, not abolish them wholesale without considering that some of them may actually be helping us.

    8. Re:human nature by spun · · Score: 4, Insightful

      Government regulation of markets is essential. Even Adam Smith knew that markets need regulation to stay free. Without regulations, markets quickly devolve into oligopolies.

      --
      - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
    9. Re:human nature by Goaway · · Score: 5, Insightful

      Ah yes, the good old libertarian cop-out. If a free market fails, find some tiny little bit of government involvement, and blame that. If a free market succeeds, take credit and ignore any government involvement.

    10. Re:human nature by TheLink · · Score: 5, Insightful

      "I challenge you to show me an unregulated market where the government doesn't have its hands in it in some way"

      I challenge you to show me a large bunch of people where you don't get a form of government within a few years - whether it's a dictatorship or otherwise.

      Similarly given a large market, you will get some form of regulation whether you like it or not.

      What people should worry about is not "lots" vs "little" regulation. What they should worry about is good vs bad regulation. With Laws (like code), quality not quantity matters more.

      If greedy corporations have the most say in the writing of regulation, the Public are unlikely to get good regulation, after all the creation of regulation that benefits the Public is not going to be one of their top priorities.

      If the Public prefer to vote for politicians/legislators who got the most money from greedy corporations, it should be no surprise what is likely to happen...

      --
    11. Re:human nature by rev_sanchez · · Score: 4, Interesting

      There is a strange element of faith that has developed around the free market. It's not enough for the Chicago school people to study the markets, model them, and make predictions or develop policy around those ever improving models. It seems as if they believe that a free market is universally benevolent to the point where they are willing to disregard any evidence to that there could have outcomes many people might not find desirable. The a major problem with this view of economics is that even in its idealized form it really isn't that profitable and no one wants to run a business while fighting cut throat competition when they possibly avoid it. Markets are made of people.

      The credit problems and the various bubbles are rooted in a few generic problems: 1. People taking part in the markets are often poorly informed and irrational. 2. Over a short period some people can cheat a market for higher profits and often escape the consequences of doing so.

      Markets are based on a notion of value and that is a psychological thing. To ignore the human element in favor of a model based on some vast crowds of these mythical, rational buyers and sellers is a mistake.

      --
      If you didn't come to party don't bother knocking on my door. Prince '1999'
    12. Re:human nature by Sloppy · · Score: 4, Interesting

      If a free market fails, find some tiny little bit of government involvement, and blame that.

      Tell me about it. How dumb to blame ISP availability on such tiny things, such as .. oh, I don't know .. cable monopoly status granted by franchise agreements with local governments, for periods lasting decades.

      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
    13. Re:human nature by pluther · · Score: 2, Insightful

      I challenge you to show me an unregulated market where the government doesn't have its hands in it in some way. Go ahead...I'm waiting.

      I've seen that a lot in this thread.

      What we commonly think of as "unregulated" has been shown to, in reality, still be regulated in some way.

      So, despite the fact that removing some of the regulation made things worse, the idea is that removing all of it would have avoided the problems?

      And the belief that a completely unregulated market will solve, or avoid, all sorts of problems is so deeply held completely in spite of the fact that, according to the proponents of this ideology, such a market has never been seen in all of human history?

      --
      If the masses can keep you down, you're not the Ubermensch.
    14. Re:human nature by Hellcom · · Score: 2, Insightful

      He's got a point there. However, to say the telecommunications market failed due to a single factor is just silly. It was the result of all kinds of stupid at the local, state, and federal level of government, and the nature of the market itself. A telecommunications market needs to be regulated to encourage competition, particular in light of its high entry barriers (you can't have every cable and dsl company dig of half of the country to lay their wires, and nor can they afford to do so). Additionally, you need and protect consumers by ensuring that those with a dominant market share don't abuse their position, as ISPs such as comcast have demonstrated. However, if anything government has for decades regulated the market in exact opposite way they should of been doing.

    15. Re:human nature by NoOneInParticular · · Score: 2, Insightful

      Somalia is doing quite well in the pirate business these days. No government to speak off, pure unfettered capitalism there. I'm sure you're dying to move.

    16. Re:human nature by ClassMyAss · · Score: 2, Insightful

      Apparently the key to arguing against libertarians is to attack libertarians using a straw-man, rather than trying to defend your own views on why it's a good idea for the federal government to interfere in free markets.

      No, that's not how to argue against libertarians, it is how to criticize their refutations of your arguments against them. The "straw-man" comment is not accurate, as it is a common libertarian claim that any perceived problem with the free market is actually a problem with the regulations already in place, and that the free market would function fine if only it were less regulated. Which, as if on cue, is exactly what you are arguing when you say...

      Imagine if instead of this, the government wasn't involved with the mortgage market in any way. If the cost of borrowing money was in line with the risk of lending it. If you knew that if your company failed, it failed, no bailout available.

      Do you really think we'd be in this mess?

      And yes, I absolutely do. Why? Because it was profitable for quite a long time to make those loans, and whenever something is profitable over a long enough period people will leverage the hell out of it; conveniently enough, the government lifted the cash requirements on the biggest banks a few years back, which is what let them push all the way up to 30-1.

      Now, you may continue to argue that the reason it was initially profitable was due to the cheap money, and that's due to the Fed's existence, and so on. And you may even be right - regulation is a tricky beast, and it's very hard to say which regulations can stand on their own and which ones must either stay or go in groups.

      But again, the problem with that argument is that the ultimate conclusion tends to be that in order to avoid any mess, we would need to have practically no government whatsoever, which is as unrealistic and unproductive as suggesting that for communism to work we'd need a totally benevolent ruling government in power with control over everything. Neither one is going to happen, and either one might work (who knows? Nobody's ever actually seen either in practice...). In the libertarian "utopia" in order to avoid bubbles and crashes like this one we'd still need to rely on the free market to somehow keep firms from leveraging up the way they like to, and I've still yet to hear a plausible mechanism that would keep them from doing that (clearly their fear of potential failure is not enough to do it - to a certain extent they were doing the right thing, particularly from the individual traders points of view, since they walked away with several years of enormous bonuses before they lost their jobs, and it was probably a net win for many, if not most of the traders).

      Or on the other hand we could just suggest that the government limit the leverage ratios like they used to, and require that anyone dealing in CDOs have enough cash on hand to deal with the obligations. Yes, it might be paternalistic, but as we've seen, these things spread far beyond the companies themselves since our whole country runs on credit, so if the banks can't be trusted to accurately assess their own risks, we are within our rights to set some limits for them. To me that seems like a much more practical and straightforward solution than ripping the system that we have to shreds, which won't happen anyways.

    17. Re:human nature by rtechie · · Score: 2, Insightful

      I challenge you to show me an unregulated market where the government doesn't have its hands in it in some way.

      It doesn't exist. What libertarians don't grasp is that it CANNOT exist. Libertarianism is utopianism similar to anarchism (in practice, it's nearly identical) and equally foolish.

      I used to be a libertarian. I grew out of it.

    18. Re:human nature by onemorechip · · Score: 2, Insightful

      Let's have a libertarian utopia in some alternate universe, and put all the libertarians there. You and I will stay in this one so we can continue to eat in restaurants that have to meet health codes.

      --
      But, I wanted socialized health insurance!
    19. Re:human nature by dedalus2000 · · Score: 2, Interesting

      the cables would never have even been put in the ground without government intervention in the granting of utility easements. the cable companies would have to either buy strips of land or dots of land and air rights as would the electric providers, the phone companies, the gas companies, water and sewage providers. it would take only one holdout to prevent utility penetration into a neighborhood.

      --
      My keyboads not woking popely.
  2. The CATO institute? by ValuJet · · Score: 3, Funny

    Since this is from the CATO institute, I will just go ahead and assume all their conclusions are bullshit.

    1. Re:The CATO institute? by Progoth · · Score: 4, Insightful

      Since this comment was made by ValuJet, I'm going to stick my fingers in my ears and shut my eyes and scream "nyah nyah nyah" and hope that I don't hear anything that disagrees with my existing biases.

  3. In Other News... by dcollins · · Score: 5, Informative

    Another paper by the libertarian-leaning CATO institute also said this: Banks, financial lenders, and mortgage providers "work better" if they are responsible and provide only secure financial investments, and are therefore not likely to enter a worldwide financial meltdown. For that reason, financial oversight legislation is neither necessary nor desirable. QED.

    --
    We know where leadership by an anti-intellectual "strongman" who scapegoats minorities and likes boisterous rallies goes
    1. Re:In Other News... by ClassMyAss · · Score: 3, Insightful

      The assumption is that they will be responsible and only provide secure financial investment. ie low risk loans

      The problem is that most bank didn't and they provided too many bad loans.

      ...hence the initial assumption that we should trust the banks to look after themselves failed, and the idea that they are better off with zero regulation is ridiculous.

    2. Re:In Other News... by Progoth · · Score: 2, Informative

      Or, more likely.....

      These very same banks were required, by regulation, to provide bad loans.

      And also....

      These loans were mostly all bought by Freddie and Fannie, with the assumption that no matter how bad their decisions were, the government would spend any amount of taxpayer money to keep these quasi-private companies alive. Funny how that works. Perhaps the government shouldn't be in the mortgage business.

    3. Re:In Other News... by readin · · Score: 5, Insightful

      Another paper by the libertarian-leaning CATO institute also said this: Banks, financial lenders, and mortgage providers "work better" if they are responsible and provide only secure financial investments, and are therefore not likely to enter a worldwide financial meltdown. For that reason, financial oversight legislation is neither necessary nor desirable. QED.

      Our recent meltdown is due to regulations that encouraged bad loans. Our future meltdowns will be due to the assumptions by banks that they don't need to be responsible because the government will step in with billions of dollars to bail them out if anything goes wrong.

      It's silly to blame the current mess on lack of regulation when the banks, financial lenders, and mortgage provides were regulated.

      --
      I often don't like the choices people make, but I like the fact that people make choices. That's why I'm a conservative.
    4. Re:In Other News... by Obfuscant · · Score: 3, Interesting
      Or, more likely..... These very same banks were required, by regulation, to provide bad loans.

      It was called the Community Reinvestment Act, enacted under Carter. It was intended to stop the practice of redlining. You know, redlining, where banks would refuse to make loans into certain neighborhoods that had a high percentage of bad loans and ineligible borrowers.

      The CRA forced them to make bad loans so they could stay in business. Clinton increased the regulations so they had to make more. And Bush the Recent tried several times to re-regulate the system to reduce the requirement to make bad loans, every time opposed by Franks and Obama et.al. "We don't need regulation, there is no problem", sang the Dems.

    5. Re:In Other News... by hansamurai · · Score: 2, Interesting

      Banks were not under zero regulation, they were being highly regulated by the government and if you honestly believe that the free market caused this collapse, then you are sorely mistaken. Just because the federal government's solution to this debacle is more regulation and bailouts doesn't mean there were zero before.

    6. Re:In Other News... by ClassMyAss · · Score: 4, Insightful

      If banks were allowed to act in their own best interest, they would have. Sadly, the Democrats (and Barney Frank in particular) refused to allow the banks to act in their own self interest.

      Please elaborate - what exactly were the banks coerced into doing that they didn't think was in their self interest? Because everyone that I know in the industry was thrilled to be offering easy loans to anyone and trading CDOs left and right, mainly because they saw massive returns on their investments while the housing market was booming, not because some Democrat held a gun to their head and told them they had to.

      I know a lot of people that were in the middle of this, and many that are now unemployed as a result, and I have yet to hear any of them seriously claim that this was caused by anything but a bunch of risky and difficult to price assets spiraling off each other and running things into the ground...

    7. Re:In Other News... by UdoKeir · · Score: 4, Informative

      These very same banks were required, by regulation, to provide bad loans.

      Except that they weren't. Stop repeating these republican blogosphere lies.

    8. Re:In Other News... by kalidasa · · Score: 2, Interesting

      Our recent meltdown was due to credit default swaps that were all dependent upon AIG in a system analogous to a star-topology network. You've been listening to too much Rush Limbaugh.

    9. Re:In Other News... by Rycross · · Score: 5, Informative

      No it didn't. It said that the location or race of that the person could no longer be considered. That is, banks could no longer red-line (look it up). They could still deny people based on their credit and income. See the wikipedia article on the CRA. The criticisms mostly suggest that the CRA had nothing to do with the crisis. At best, they could point out innuendo (the CRA made banks *feel* like they had to do sub-prime lending) rather than a direct causal link.

    10. Re:In Other News... by Anonymous Coward · · Score: 4, Insightful

      Yes, it definitely was the CRA, passed back in 1977. It was a secret time bomb. It magically didn't cause problems for 25 years, but then *BOOM*, it wrecked the economy by forcing banks to give loans to poor people.. Er, even though most of the fishy loans went to middle class people.. in the last five years.

      Okay. You sure convinced me. Blame Carter!!!

    11. Re:In Other News... by quanticle · · Score: 2, Insightful

      The banks were not forced to provide such loans. The Community Reinvestment Act can only be blamed for a very tiny percentage of the subprime loan market. What really sparked the boom was the realization on the part of banks and other mortgage originators that very few buyers of mortgage securities actually scrutinized the mortgages that are in the tranches. As long as the default rate stayed underneath the modeled default rate, no one cared that the fundamentals were unsound.

      As for Fannie Mae and Freddie Mac, what happened was that they were trying to compete with other subprime lenders and therefore relaxed their own lending requirements. Fannie Mae and Freddie Mac did not pull private industry into this mess; rather, it was quite the opposite.

      --
      We all know what to do, but we don't know how to get re-elected once we have done it
  4. Oh, wait... by ObsessiveMathsFreak · · Score: 2, Insightful

    In it, Lee argues that because a neutral network works better than a non-neutral one, the Internet's open-ended architecture is not likely to vanish, despite the fears of net neutrality proponents,

    $traceroute slashdot.org
    traceroute to slashdot.org (216.34.181.45), 30 hops max, 40 byte packets
      1 10.100.56.1 (10.100.56.1) 17.348 ms 17.801 ms 18.228 ms
      2 10.220.17.1 (10.220.17.1) 3.171 ms 3.270 ms 5.564 ms
      3 * * *
      4 * * *
      5 * * *

    .....

    28 * * *
    29 * * *
    30 * * *

    --
    May the Maths Be with you!
  5. The gist by ClassMyAss · · Score: 3, Insightful

    For anyone that doesn't have the effort to slog through 36 pages of Internet history that more or less tells us what we already know (that up until now, the internet has been pretty open), the gist of the conclusion is "We shouldn't bother with network neutrality regulation or worry about those in charge abusing their local near-monopoly status, because hey, the market will work it out!"

    There's also a nice helping of "The government is the worst monopoly of all, and we should never allow them to pass laws to restrain the actions of near-monopolies, because hey, the market will work it out!"

    In other words, we should trust that despite the massive amount of money and energy the companies controlling our "tubes" are putting into fighting network neutrality legislation, they won't ever abuse the privilege to screw us if we just leave things the way they are. But if they are not allowed to screw us, that's when we have to worry about monopolistic behavior!

    Color me unimpressed by the overwhelming force of logic there...

    1. Re:The gist by Ihmhi · · Score: 2, Interesting

      I agree with a good bit of libertarian philosophy - like the portions about the government shouldn't be able to tell you what you can and can't put in your body or what you can and can't do in the privacy of your home. I don't agree with a near-complete defanging of the government.

      The government is supposed to be (in my eyes) an organization to protect us from things that can screw the individual over (other large organizations, like corporations) as well as provide for the common defense and needs of the people. Nothing more and nothing less.

    2. Re:The gist by JesseMcDonald · · Score: 2, Interesting

      If you truly believe that, then you should be a libertarian. Governments have far more power than anyone else. A company only power consists in choosing not to do business with you; governments, on the other hand, are comfortable with the use of force, possessing a facade of legitimacy no private aggressor can match.

      As for the telcos -- this was never a free market to begin with. The government used its taxes and legislation to create the monopoly in the first place, and to this day the major communications companies remain only semi-private, with special privileges and regulations at various levels, all of which contribute to maintaining high barriers against any potential competition.

      The situation with cable service, too, is primarily the product of local governments and their short-sighted regional exclusivity agreements.

      --
      "The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
  6. I'm doubtful. by fuzzyfuzzyfungus · · Score: 2, Interesting

    The idea that neutral networks work better seems plausible enough; but that doesn't imply that neutral networks are what the market will achieve. If I can improve my position by building a walled garden and sucking everybody inside dry, that will impose considerable externalities, and probably represent a net loss in efficiency; but I'll do it anyway because I get the gains, and other people suffer the losses. Unless this paper has an atypically good reason for why externalities will be internalized in this market, I am wholly uncomforted by the fact that neutral networks are more efficient.

  7. human nature by janeuner · · Score: 2, Informative

    As long as politicians are involved with some having more sway than others, you can expect them to abuse their position in the name of greed. It's simple human nature. Say all you want about how government will police itself or that the market will sort itself out. However, reality has shown us time and time again that this isn't the case.

  8. Internet service in Ontario by Digital_Quartz · · Score: 3, Informative
    Here in Ontario, I can get high-speed internet from:
    • Rogers (cable), which blocks ports, throttles BitTorrent, VPN, and any encrypted traffic. Rogers also has some stupid "web search on typo" system which breaks DNS.
    • Bell (DSL), which throttles BitTorrent.
    • Many small third party DSL providers, which don't throttle, but Bell controls the last mile for all DSL, and throttles for them.

    So, it's a nice theory, but Ontario (and most of eastern Canada) disproves it nicely.

  9. The life of the law by girlintraining · · Score: 3, Insightful

    "The life of the law has not been logic; it has been experience. The law embodies the story of a nation's development...it cannot be dealt with as if it contained the axioms and corollaries of a book of mathematics." - Oliver Wendell Holmes, Jr.

    It is for this reason that the internet will continually be subject to attack. It is a public resource and history has taught us that public resources must be managed, regulated, rationed, and controlled. People here on slashdot and in the technical community believe that the internet is different, that it should not be subjected to the same restrictions that are placed on other public utilities like the roads, electricity, or other infrastructure. But our community is ignoring hundreds, arguably thousands, of years of human history which has inevitably converged towards the same result -- Public resources must be managed resources.

    This is an unpleasant truth, and an unpopular one. We're terrified, in many cases rightly so, of the government coming in. But witness what the lack of government regulation has done. When the internet was first opened to the public, there was no commercial interest, but as commercial interests moved in there was no central governing authority. And so a myriad of organizational nightmares have evolved in every aspect. The DNS system has factured, with lawsuits and international pressure abounding. Peering agreements between large ISPs have become power battles that have sometimes resulted in significant fractions of the network being inaccessible to the whole, or degrading performance. We have governments erecting giant firewalls, and the thousand cultures of the world now battle for control over what goes in to their part of the network. Everybody has their own ideas, and it is now little more than anarchy. And none of these battles is concerned about performance, democracy, or the other ideals that net neutrality activists advocate.

    We were so scared of the government that we let corporations come in and seize control of the infrastructure. Now the future of the internet is a question of economics, not idealism, and corporations are battling and lobbying to become the largest and most powerful. Consolidation is happening in the ISP market in every country in the world. And as that consolidation continues to occur, and fewer players are in the market, it will bias ever more heavily towards control and regulation... But it will be a control based on economics favorable to the corporate interests, not the users, not the private citizens.

    It's time to admit that we need government involvement. It's time to sit down at the negotiating table and decide what the fairest way to ration and regulate this resource is. That's the only consideration of the law, and it's best we do it soon before these corporations become so entrenched that only the most desperate of solutions will bring relief. And once we decide what we, as a country, want to do with this resource, then we need to set about making treaties with other countries to bring some level of regulation to a global level.

    This is going to happen. It has to happen. The only consideration now is how to guide this process toward a fair outcome.

    --
    #fuckbeta #iamslashdot #dicemustdie
  10. Corporations cannot self-regulate. by Kaenneth · · Score: 5, Insightful

    Surveying the wreckage of the credit crisis, Alan Greenspan says he made one very big mistake.

    The free-market cheerleader and former maestro of the U.S. Federal Reserve Board conceded yesterday that he wrongly thought banks had an inherent interest in shielding their institutions and their shareholders from risk.

    That assumption turned out to have been dead wrong as financial institutions brought the banking system to the brink of failure in recent months after loading up on exotic mortgages and risky derivative products such as credit default swaps.

    "I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms," Mr. Greenspan bluntly told a U.S. congressional committee exploring the role of regulators in the financial crisis.

    "Something which looked to be a very solid edifice and, indeed, a critical pillar to market competition and free markets did break down.

    "And I think that ... shocked me. I still do not fully understand why it happened."

    The staunch belief that banks could manage their own tolerance for risk underpinned Mr. Greenspan's aversion to heavy-handed banking regulation during his record 18-year tenure at the helm of the Fed.

    Mr. Greenspan was an early devotee of author Ayn Rand, whose 1957 novel Atlas Shrugged inspired a generation of libertarian thinkers who believe in the right of individuals to live entirely for their own interest.

    1. Re:Corporations cannot self-regulate. by Cornwallis · · Score: 3, Insightful

      "Mr. Greenspan was an early devotee of author Ayn Rand, whose 1957 novel Atlas Shrugged inspired a generation of libertarian thinkers who believe in the right of individuals to live entirely for their own interest." But not at the expense of others.

    2. Re:Corporations cannot self-regulate. by maxume · · Score: 2, Interesting

      There is a caveat -- given the presence of an interventionist government, corporations have shown that they cannot self regulate.

      I don't think the world would be better without government regulation, but the current crisis is as much a result of poor government regulation as it is a result of poor self regulation, and it doesn't really say anything about an unregulated marketplace. Call not for more regulation, but for better regulation. Judge results, not page counts.

      (Two major things are that without the SEC, the stock market would not be as big as it is, and without Fannie and Freddie, the mortgage market would not be nearly as liquid as it is (was...).)

      --
      Nerd rage is the funniest rage.
    3. Re:Corporations cannot self-regulate. by Radical+Moderate · · Score: 2, Insightful

      Organizations have no self-interest, but the people running them do, and those interests aren't always the same as the organizations' stock holders, employees, or customers. The fact that Greenspan couldn't figure this out even after the Enron debacle indicates that he was grossly blinded by ideology. Of course, the fact that our legal system supports the fiction that corporations are people helps perpetuate such nonsense.

      --
      Never let a lack of data get in the way of a good rant.
  11. I call BS... by nweaver · · Score: 2, Insightful

    There are enough cases, eg, NebuAdd, NX-domain wildcarding, P2P traffic disruption, where the ISP gains a large net benefit from behaving in a non-neutral manner, and as high-bandwidth ISPs are a duopoly at best for most individuals, unless you can reveal their practices AND the threat of regulation & marketplace rebellion, the net becomes unneutral.

    Remember, the "market will take care of itself" was also promulgated by CATO in respect to Wall Street, and we know how well that worked out.

    --
    Test your net with Netalyzr
  12. Re:Just one thing... by booch · · Score: 2, Interesting

    But the Internet is a two-way street, with clients and servers. If the client-side ISPs decide to start throttling, then the server-side providers can decide to start throttling those ISPs as well.

    Do you really think that people will stick with an ISP that has slowed-down access to Google? I think Google is in a good position to threaten ISPs into maintaining net neutrality. Imagine going to Google and seeing a note telling you that your ISP has caused your access to Google to be throttled, and suggesting that you call your ISP or move to another ISP.

    --
    Software sucks. Open Source sucks less.
  13. Net Neutrality Law is Necessary by Eravnrekaree · · Score: 2, Insightful

    The article is just full of utter nonsense that should be clear to anyone knowing anything about the internet. The ONLY way to gaurantee that ISPs will not censor the net is to gaurantee that they dont, in the only truly enforceable way, with law. It is all too easy for the ISPs to implement hardware and software that will restrict access to or impede access to certain content. The consumers, given the near monopoly position of the ISPs, would have little other choice than to put up with this. It could also be that only exorbitantly priced service tiers would offer unrestricted access to the internet, meaning access to the full internet would only be available to a small, wealthier segment of the population. Furthermore, even though an uncensored common carrier, whether it is postal or electronic, is essential to free speech, I am unsure if enough consumers would realise the great importance of this to take demand a change of their ISPs behaviour. ISPs of course can just reject that request and leave consumers without recourse.

    Net neutrality can only be assured, adn free speech therefore, with it being required by law and ISPs being recognised for what they, as common carriers and that they should be required to carry all information over their networks unmodified. To allow otherwise is to open the door to censorship, and to make these corporations the functional equivalent of the Chinese government, blocking whichever sites which suit them. This would have an effect exactly equivalent to government censorship that it should be considered the same as government censorship.

    Net nuetrality is also unnecessary for the ISP. They claim it is needed to raise revenue to maintain the network. This is utterly incorrect as they can use bandwidth tiers to do this. Speed and performance levels should apply without discrimination to all content flowing over the network.

    Net neutrality is to protect consumers rights and free speech rights, by assuring every person can access all information made avialable on the internet and publish their own content which can be accessed to anyone else, without it being blocked.

    We can expect conservative organisations to be prejudiced against the interests of free speech and the people and to be high biased towards large corporate interest whom they represent and who finances them. They are highly ideologically biased to an approach which endangers individuals freedoms in favour of large corporations, by dismantling the voice of the people, our democracy, and removing all restrictions from corporations which turns them into an unelected plutocracy which takes the functional role of a totalitarian government. I oppose totalitarianism in the form of corporation or government, often either which are different in name only, and therefore I oppose censorship of the internet by corporations or government, and I support Net Neutrality laws passed by our democratic government to assure that ISPs are not permitted to block access to content.

  14. Why would ISPs even want to censor? by MikeRT · · Score: 2, Insightful

    The only thing ISPs care about by default is that their users aren't abusing access to the Internet through means like taking up too much bandwidth or doing illegal things. They don't care whether you spend your day on Slashdot or Stormfront. If left up to their own devices, which they have been so far, they let their users go wherever they want until the law says otherwise. What makes you think that the government is more likely to come in and say that they must do this, rather than come in and tell them they have to block access to certain sites and opinions? There's already precedent for the latter, but not the former, in many Western states.

  15. that's insane by circletimessquare · · Score: 2, Insightful

    the meltdown is due to human psychology. i did not know you needed regulations to create panic and fear. i suppose if we had no regulations, the very concepts of panic and fear would disappear?

    fact: an unregulated market is subject to times of irrational exuberance, and times of panic and fear. there is absolutely no prerequisite to these truths, and no escaping them. the only way to save ourselves form the excesses of irrational excitement or hysteria is regulation

    if you don't believe or understand that, you ar ein some sort of denial and choking on some massive propaganda

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  16. Net Neutrality Law is Suicide by CranberryKing · · Score: 2, Insightful

    Net neutrality is to protect consumers rights and free speech rights, by assuring every person can access all information made avialable on the internet and publish their own content which can be accessed to anyone else, without it being blocked.

    Your crazy if you think that is what the government will actually do. Look at the direction those same governments have gone so far with respect to civil liberties and freedom of speech. You want to hand the keys to the entire communication infrastructure over to them and say, "promise to do the right thing, okay". You will be delivering censorship on a silver platter, in a more augmented and frightening way. Large corporations can become corrupt, that's inherent in human nature, but there are steps you can take to combat them. Large governments, tend to become tyrannies and removing them typically requires lots of people to die. On an unregulated Internet we are free to write our own applications, encrypt communication and take our own steps to work around greedy, short sited ISPs. Once the government is involved, you will either be a terrorist or pedophile if you do so. Think about it because once you hand it over you will never get your truly free Internet back again.

  17. Greenspan is a liar by megamerican · · Score: 3, Insightful

    Greenspan was one of the people responsible for changing regulations that led to this crisis. Once he became FED chairman in the 1980's he started circumventing the Glass-Steagall Act of 1933.

    http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html

    In 1933, Senator Carter Glass (D-Va.) and Congressman Henry Steagall (D-Ala.) introduce the historic legislation that bears their name, seeking to limit the conflicts of interest created when commercial banks are permitted to underwrite stocks or bonds. In the early part of the century, individual investors were seriously hurt by banks whose overriding interest was promoting stocks of interest and benefit to the banks, rather than to individual investors. The new law bans commercial banks from underwriting securities, forcing banks to choose between being a simple lender or an underwriter (brokerage).

    In August 1987, Alan Greenspan -- formerly a director of J.P. Morgan and a proponent of banking deregulation -- becomes chairman of the Federal Reserve Board. One reason Greenspan favors greater deregulation is to help U.S. banks compete with big foreign institutions.

    In December 1996, with the support of Chairman Alan Greenspan, the Federal Reserve Board issues a precedent-shattering decision permitting bank holding companies to own investment bank affiliates with up to 25 percent of their business in securities underwriting (up from 10 percent).

    Late 1999:

    After 12 attempts in 25 years, Congress finally repeals Glass-Steagall, rewarding financial companies for more than 20 years and $300 million worth of lobbying efforts. Supporters hail the change as the long-overdue demise of a Depression-era relic.

    Just days after the administration (including the Treasury Department) agrees to support the repeal, Treasury Secretary Robert Rubin, the former co-chairman of a major Wall Street investment bank, Goldman Sachs, raises eyebrows by accepting a top job at Citigroup as Weill's chief lieutenant. The previous year, Weill had called Secretary Rubin to give him advance notice of the upcoming merger announcement. When Weill told Rubin he had some important news, the secretary reportedly quipped, "You're buying the government?"

    Greenspan was the major player in repealling the legislation which would have kept this mess from ever happening. It is very doubtful that Greenspan didn't know why Glass Steagall was enacted in the first place.

    Of course he is going to plead ignorance. He doesn't want to get put behind bars and flogged by the masses by admitting he is a criminal.

    --
    If you have something that you dont want anyone to know, maybe you shouldnt be doing it in the first place -Eric Schmidt
  18. Oligopolies? by Moryath · · Score: 4, Insightful

    You could call the US market an "Oligopoly."

    But that's understating the case.

    In >80% of the US market currently, the customer is functionally given three choices: Dialup, Monopoly ISP (Cox, Comcrap, AT&T, etc), or NOTHING. They don't have a "choice" at all.

    For example: no DSL is built to my home. Verizon can't/won't build out FiOS because, they claim, they don't "own the physical phone lines" so while I could switch to them as my phone provider, they have no ownership/authorization to push FiOS. Functionally, I am limited to Dialup, Comcrap, or NOTHING and even the dialup companies are dying fast.

    The 'net cannot stay neutral WITHOUT legislation when you have big companies like Cox and Comcrap that have monopoly status over far too many of their customers. Hell, that's how we got this fucking-stupid "250 GB" traffic cap setup as well.

    In an actual competitive market, the customer can go to the best provider. In a monopoly market, the customer is inevitably given the "choice" of either crap service or no service. Unfortunately, government regulation to protect consumer rights (which was signed away by both Clinton and Bush, little by little) is necessary because otherwise the market devolves into monopoly control everywhere, and the only "competition" happens on the fringe edges where you might have two big mostly-monopolies trying to horn in on each other's monopoly turf.

    1. Re:Oligopolies? by pin0chet · · Score: 2, Insightful

      The competitive ISP market you desire will arise on its own in the next five years because of smarter, more effective broadband technologies. At the heart of this is spectrum, which erases the rules of the game as they existed up until now and replaces them with conditions far more conducive to entry (and exit).

      Laying a wire to each home is really, really expensive on a per-household basis. Verizon has spent upwards of $1,000 per home to add FiOS. Building completely from scratch is even more costly.

      But wireless is a whole different story. Sure, you've got to have base stations, which require backhaul, but the costs involved there are much more bearable than those involved with old-fashioned overbuilding.

      To see why wireless broadband is such an important vehicle for broadband competition, consider Wi-Max. It's already giving DSL a run for its money in Baltimore, because it offers reliable throughput of 3Mbps down/2Mbps up for $25 a month, with no strict usage limits. Of course, Wi-Max isn't the end-all of wireless, but merely a stopgap until Long-Term Evolution really takes off.

      LTE will completely change the game when it starts getting widely deployed in a couple years. After the 700mhz band is vacated in a couple months, T-Mobile, Sprint, Verizon, and AT&T will all work on building out LTE networks, which will offer at least 10Mbps for the same price as a typical home broadband connection.

      Six to eight ISP choices may not mean as many choices as we have for burgers, but it's still a lot of competition, especially compared to what we have now. And it is surely enough to ensure that ISPs can't get away with the heavy-handed tactics that have angered so many of us recently.

      It wouldn't surprise me if by the time Congress finally gets around to regulating ISPs, the whole justification for regulating them in the first place is no longer logically valid.

  19. A thought experiment by FiloEleven · · Score: 2, Insightful

    Which would you rather have?

    1) A bunch of large corporations dueling it out amongst themselves, with the ones who gain and maintain the largest market share being the most successful.

    2) A bunch of large corporations dueling it out amongst themselves, with the ones who gain and maintain the ears of the most powerful government officials being the most successful.

    Yes, companies will abuse their positions in the name of greed. There is no way around that. When you get government involved, however, you're simply raising the stakes. Sure, you can vote out the current crop of greedy politicians who favor the corporations, but you're still stuck with the bad laws they made because it's a hell of a lot easier to pass a bad law than to repeal one. Libertarians think that it's better to pass no law than a bad law.

    Additionally, as other posters have done, I challenge you to point to some concrete examples of the free market failure you believe is so rampant. (You might want to avoid pointing to the Great Depression, as that has been debunked before and will no doubt be debunked again should you do so.)

  20. you're ignorant of history by circletimessquare · · Score: 2, Insightful

    go study the banking panics of the 1800s

    panic sets in, feeds off itself, and destroys the entire marketplace

    your comment is in direct contradiction to established historical fact

    what is wrong with you free market fundamentalists?

    a little regulation HELPS. it can do nothing but help. let go of your bizarre irrational fear and your cult-like approach towards free markets. you're not logical or reasonable in your approach, you're like arguing with a creationist: you've taken a single act of faith: that a completely free market is always good, and in spite of all common sense and reasonable evidence to the contrary, you will not let go of your religious deathgrip on a fundamentalist absolutist concept

    the best market is a sandbox: free within certain parameters, regulated when the marketplace swings to extremes

    go ahead, dispute that. i expect you to. you're not a reasonable person, you're a member of a fundamentalist religion, beyond the reach of reason

    no, a completely free market is not a good thing, it is a stupid thing

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  21. Re:neutral network works better??? by david_thornley · · Score: 3, Insightful

    Choosing a car analogy was the right thing to do, but it's the wrong analogy.

    The roads are neutral in a very important way: any appropriately licensed driver is permitted to drive any appropriately registered vehicle on any public road suitable for the physical form of the vehicle. There are no public roads on which you may drive a U-Haul truck but not a Ryder truck.

    Similarly, I want the internet to be neutral, in the sense that it doesn't matter where a packet comes from or where it's eventually going. ISPs are welcome to charge more for different levels of service. I'm not going to complain about reasonable levels of packet shaping, such as cutting down on P2P to allow VOIP through at low latency. The problem is if I have to pay more to get Google packets rather than Yahoo's.

    If there were enough competition going on, we could let the market sort itself out. However, most people have limited choices in broadband providers (I'm very lucky; I've got three choices), and it's not like I can start my own last-mile internet service, getting easements and rights-of-way to run my own lines. For most people, if one or two providers do something they don't like, the only other choices are dial-up or satellite.

    --
    "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  22. Re:Libertarians love censorship by spun · · Score: 2, Insightful

    Okay! That was trolling, this is arguing.

    First, the free market has well known failure modes: natural monopoly, where the marginal cost of entry into the market increases dramatically after the initial entry. Roads, sewers, electric and phone lines are a great example. Information asymmetry is another, and externalities are the third.

    Second, money is power, and power can be used to oppress. A free market is a similar choice mechanism to a democracy, except that in a free market, it is one dollar, one vote. The more money you have, the more you can use your money to change the parameters of the market.

    Third, choice. A free market does not provide real choices. It provides the illusion of choice. And where it does provide real choice, it seeks to hide the real differences in those choices, making picking the better item or service difficult.

    Fourth, Destruction of intrinsic motivations. A competitive market destroys intrinsic motivation to do something. For instance, go to a bar and ask all the women if they will sleep with you. You may get lucky. Now, same thing, except offer to throw in ten dollars. You will strike out every time, because you have destroyed intrinsic motivations.

    Fifth, duplication of effort. A competitive market requires duplication of effort where a socialist system does not. Each company must repeat the efforts of all other companies in a given market, instead of sharing effort.

    Sixth, closed communication channels. In a competitive market, innovations aren't shared as freely as they could be in a socialist system, because that would be giving away advantage.

    Seventh, waste and mismanagement. A competitive market develops its own special kinds of parasites, who add nothing of value to society yet make a lot of money. Advertisers, for instance. Or the insurance industry. These people are professional manipulators, con artists, gamblers and frauds, yet they are richly rewarded in a capitalist system.

    Eight, real world examples. No company is set up internally as a free market system. None. If the free market is so great, why don't companies organize themselves that way internally?

    There's plenty more where that came from, but lets see if you can refute even one of these points before I bring out the big guns.

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
  23. BZZZT! REALITY GROUND ERROR! by Moryath · · Score: 2, Insightful

    Really, you think "wireless broadband" will be the savior? It's got more problems than wired (latency issues, distortion/signal strength issues, materials penetration issues, interference issues).

    And if that weren't enough, if anything "Wireless Broadband" is already MORE restricted than wired (DSL/Cable/FiOS) offerings. For example, both Verizon and AT&T cap you at FIVE GB. Your own example (Wi-Max) sneakily enters into underlying "service provider" agreements to pull the same stunts.

    Again: a FIVE GB cap, even when advertising their service as "unlimited." Use anything over that, and they cut your account instantly (while insisting, of course, that if you want to get out you have to pay them severance charges).

    "Wireless broadband" is not your savior.

  24. 80% by square mile perhaps. by HornWumpus · · Score: 2, Interesting

    If you live in the city or most 'burbs you have at least DSL and cable. Also dialup and satallite but they suck. Classic Oligopoly.

    Markets rarely devolve into monopoly (outside the fevered imaginations of 'know it all college hippies'). Much more typical is the other way around (additional competitors enter the market over time), which is why wireless is so important. Much lower barriers to entry.

    --
    John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  25. Re:Libertarians love censorship by iamhigh · · Score: 2, Interesting

    Libertarians are Anachist
    Libertarians hate govt regulation, so therefore, so do Anarchist
    You want the govt to dicate what corporations?
    You do realize that a corporation can be a single person, or family in my case. You want nobody to be able to open a business and make a living for themselves?
    Agreed, I have no idea what your definition of Anarchy is. I think the other poster said it, you sound more like a commie, using some crazy definition of Anarchist to pass off your views as better than what they really are.
    As for the flea market... why do you care what the sellers make? Don't you just want the consumers to be the ones that win? I thought you didn't care for "companies" (aka sellers). Again, you seem to be contradicting yourself.

    --
    No comprende? Let me type that a little slower for you...