The Free Market Works
If I could interview any one person in the Trump administration it would be Ajit Pai. This guy is brilliant and probably one of Donald Trump’s top three appointments. He’s a free market capitalist that understands the big picture of the internet and the threats that are arrayed against it. I heard him on a podcast while out running today and couldn’t resist posting a link to his fifteen-minute interview by Glenn Beck.
You’ll need to fast-forward to the 1:11:20 mark:
5/2/17 – Ajit Pai, Christina Hoff Sommers, and Steve Deace Join Glenn Beck
You’ll need to fast-forward to the 1:11:20 mark:
5/2/17 – Ajit Pai, Christina Hoff Sommers, and Steve Deace Join Glenn Beck
Net neutrality is a horrendous idea that threatens the very foundations of the internet economy. It is the equivalent of enacting 1950’s communist Russian policies in America. In other words, it stifles innovation. Most tech blogs don’t understand the ramifications of net neutrality and have an almost child-like understanding of economics. Their primary error is in believing that the net owes the little guy equal access to resources. This isn’t true in the real world nor should it be true on the internet.
Let me give you a brief example. Let’s say that you think you could build a better iPhone. You draw up your schematics and go out to buy your materials. You are then shocked to find that you can’t get as good of a price for memory chips, displays, and aluminum as Apple (AAPL). Your competitor to the iPhone is going to cost you $2,000 per unit to produce. You cry foul that the system is rigged against you. Your material vendors say “No, you just don’t buy enough materials to get an Apple-level discount.”
This is why small businesses rarely attack large corporations head-on. They look for niche markets where the big guys don’t want to play, and they can charge higher prices to cover their cost of business. Internet companies will have to be no different. If you want to attack Google by starting a business out of your basement, good luck with that. But if you design something unique like Plex, more power to you.
But using government regulations to ensure everyone has equal access to resources is a communist idea that no one outside of North Korea should be gullible enough to believe.
Related:
The Danger of Net Neutrality
Net Neutrality and the California Drought
Let me give you a brief example. Let’s say that you think you could build a better iPhone. You draw up your schematics and go out to buy your materials. You are then shocked to find that you can’t get as good of a price for memory chips, displays, and aluminum as Apple (AAPL). Your competitor to the iPhone is going to cost you $2,000 per unit to produce. You cry foul that the system is rigged against you. Your material vendors say “No, you just don’t buy enough materials to get an Apple-level discount.”
This is why small businesses rarely attack large corporations head-on. They look for niche markets where the big guys don’t want to play, and they can charge higher prices to cover their cost of business. Internet companies will have to be no different. If you want to attack Google by starting a business out of your basement, good luck with that. But if you design something unique like Plex, more power to you.
But using government regulations to ensure everyone has equal access to resources is a communist idea that no one outside of North Korea should be gullible enough to believe.
Related:
The Danger of Net Neutrality
Net Neutrality and the California Drought
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