Re: Congress wants ///CAPITALISM Not Socialism!!!
> The airwaves ie. radio frequencies are owned by the
> government. Radio stations use them under authority of the
> government and must operate under the government rules.
>
> You may not like to face that fact, but government ownership
> of the airwaves is Socialism.
Is collective ownership of the roads Socialism?
If you sold ownership of every road to the highest bidder I can guarantee it would damage the economy, since the owners would act in their individual interests and charge massive amounts for use of those sections of road for which there was no realistic alternative. You would at least need to regulate them in some way, to stop charging of extortionate amounts every time an operator gained a monopoly on all the routes between two cities.
The point being - regulation is sometimes helpful to the smooth running of the market.
> There are frequencies around the country that are unused due
> to regulation. If every available frequency that is without
> interference could be open, then there would be some real
> competition. I understand that NYC and SoCal have all their
> frequencies used. That is not the case for most of the
> country.
Interference is unfortunately a relative concept. Generally in practice whether you are causing interference or not is largely dependent on how good your lawyers are. When people suggest total deregulation of radio I like to point to the state that the FM broadcast tower at Valcava in Italy (serving Milan) has ended up in after 30 years of the government totally ignoring commercial radio:
http://www.geocities.com/fedstel/valcava/rottogiusto6.JPG
(From
http://www.geocities.com/fedstel/valcava/valcava.htm)
And no, it's not an optical illusion, the tower really is bending because of the sheer weight of aerials. All put up by legitimate companies, and most with shareholders, I would add.
> The amount of land is limited too, but that has not brought
> about intense radio style regulation of land.
The amount of land is considerably less limited than the amount of space for radio stations. And there are actually fairly intense regulations; you can't build a skyscraper or casino just anywhere.
> I know that what has been tested by Friedman in the real
> world has suceeded. I also know that regulation has shown
> some bad effects in the real world where it is used.
Lack of regulation also has bad effects, such as factory fires where half the workforce gets killed because they lock the fire exits to stop them sneaking out for a cigarette.
Regulation should be kept within reason - there are plenty of examples in the world of silly over-regulation, such as the ludicrous Irish law requiring every radio station, irrespective of target audience, to broadcast 20% news - but it isn't inherently bad.
Maybe some restrictions in US radio should be lifted - but lifting all of them would be a mistake. Monopolistic practices are damaging for everyone except shareholders. If Clear Channel owned every significant station in Houston, the quality of radio in Houston (in the absence of competition) would pretty quickly nosedive.