The Bottom Line
December 10, 2003
Essay on Powell Published

My essay praising Michael Powell's approach at the FCC was published today in the Washington Times. It's the one where I concluded


Congress thinks it knows the optimal fraction of the television market that can be owned by one media firm. Reed Hundt thinks he knows better than consumers themselves how much they want to pay for fiber to their homes. Michael Copps thinks he knows how to manage phone lines and how to allocate spectrum.

Unlike his detractors, Michael Powell thinks he knows less than the market. And in my view, that makes Michael Powell a man of rare and precious wisdom.

Posted by Arnold at 7:53 AM | Email this entry | Category: telecom, FCC
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The Telecom Bus

Excerpt: Arnold Kling notes today in the Washington Times how the FCC is being guided into a pro-market stance by it’s chairman, Michael Powell. In essence, the genius of Powell is humility in the face of complexity: the market knows more...

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Trackback from Telepocalypse, Dec 10, 2003 12:53 PM

Powell is right on with that approach. Honestly, though, I think any other approach than the one currently in practice would offer some improvement. At least, any approach that would remove inhibitions of competition.

Posted by Ready on December 10, 2003 04:52 PM | Permalink to Comment

Unfortunately, market efficiencies are of only academic interest to we who are considered to be mere product.

Posted by Matthew Ernest on December 11, 2003 12:46 AM | Permalink to Comment

So you're not concerned about concentration of the media? Have you read William Safire's thoughts on this, and if so, what do you think about them?

Posted by Steve Larson on December 13, 2003 08:52 AM | Permalink to Comment

I think that Safire is a fool on many issues, particularly this one.

In today's Washington Post, there is an article about how small groups have achieved parity with large organizations in the age of the Internet. They cite the Dean campaign.

I think that the big story about media today is the *decline* of the importance of centralized media power. Anyone who thinks that centralized media is becoming more important needs to supply at least a shred of evidence.

Posted by Arnold Kling on December 14, 2003 09:30 AM | Permalink to Comment

I disagree with Mr. Klings assessment of Mr. Powell. Particularly because Powells actions have not necessarily demonstrated an attempt to turn control over to the "free market". The word that describes most of the changes Mr. Powell has championed would be trans-regulation rather than de-regulation. There will always be an argument among economist whether the market is perfectly self-regulating or requires tweaking. However, where the FCC is concerned it is a given that some form of regulation exists, even if it favors a minority at the expense of a majority. Mr. Powell has not demonstrated any intent to get out of the regulatory business whatsoever. If he had then the big industry players would have called for his head on a platter. Ask the local mom & pop internet service providers who pioneered commerical internet access what grade they would give Mr. Powell.

Posted by Jody Leavell on December 18, 2003 05:51 PM | Permalink to Comment

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