Organized crime organizations suppress competition in a market. This keeps margins high on vice goods and services. Higher prices means overall crime rates fall, some people just can't afford vices at higher rates. Organized crime trys to avoid "wars" with rivals because they are expensive and bad for business. Big Crime also stifles small time rivals who expand the market by bidding down monopolist pricing.
In theory, police would cooperate with mafiya to keep the streets clean of petty crimes that interfere with the mafiya's business. Total crime falls because monopolists will maximize profits in a smaller market at higher prices. General law and order benefits those holding monopolies on drugs, gambling, prostitution, and other steady businesses.
But there's a greater problem. Monopolies concentrate wealth and power. This leads to corrupt government.
So we write special laws that hurt organized crime. We add penalties for large quantities of drugs. We legalize big gambling to bring it out of the underground economy, producing tax income instead of fueling crime lords. We mandate property forfeiture and allow mobster surveillance. In short, we make it more expensive to do big crime and we level the playing field. You never do away with crime altogether, but you cut the concentrated cash flow that corrupts.
Which brings me to net neutrality.
Our Martin Geddes thinks little of laws and regulations supporting net neutrality.
I've said it many times before, but Network Neutrality is a treatment for the symptoms, not the causes - and it's an ineffective anti-consumer folk remedy at that. Good intentions aren't enough. ... Picking at one tiny part of the anti-competitive edifice isn't the way forward. Better to have power over suppliers through your wallet than via politicians.
I agree. In a perfect world.
But the markets are imperfect, power is already concentrated. We see the corrupting power of the largest lobbyists in Washington D.C. and other centers of political power. We see their astroturfing and other bad acts.
So we must act.
We must effect change.
It is the greatest of all mistakes to do nothing because you can only do a little. Do what you can.
- Sydney Smith
We must out-innovate and out-market.
We must organize as consumers.
We must organize as citizens. We need to educate this generation's Judge Greens, the judge who broke up Ma Bell and made the mobile revolution possible.
We must lead our society to define unmediated access to the Internet as a human right, a civil right. And to react with anger and purpose to anyone who tries to tamper with that access.
We must find allies, if not friends, in other industries. Companies that need their bits to go untrammeled. That need an Internet without gatekeepers. Companies that know how to lobby.
Like the mafia, yakuza, or bratva, the concentrated power of the telcos will fight back.
They won't fall to any one measure. So we need a theme that All that is necessary for the triumph of evil is that good men do nothing.
-- Edmund Burkedrives many measures, new ones over time, each driving the monsters toward acceptable societal norms. Perhaps the theme is liberty and freedom?
I agree with Martin that fighting the telcos with laws is hard. Maybe impossible. And not without risk.
But doing nothing is not an option. The societal consequences of giving absolute control over public assembly, public speech, over our new libraries, encyclopedias and news sources, over our civic participation and education - this is tantamount to creating a new branch of government, one without oversight, without checks, balances or accountability.
Martin, we don't have dozens or hundreds of viable suppliers in the United States. We don't have efficient markets for Internet access. And we have damning evidence of the foul intentions of these monopolists to subvert civic freedoms and rights.
So, instead of waiting for Adam Smith's invisible hand to restore rights seized by phone and cable companies, what do you think should we do?
P.S. Dr. Magaddino, my old economics professor, challenged me to consider crime, applying supply and demand theory to social evils instead of goods.