Wayne Crews and I have an article in today’s American Spectator about the antitrust crusade against Intel. Our key points:
-An FTC picking winners and losers is not capitalism. It is crony capitalism.
-Chips in “Wintel” desktop computers increasingly constitute just one subset of a vast semiconductor market. Only a small fraction of the chips in non-PC devices are Intel’s — and these devices are where the future lies.
-Regulators’ charges against Intel have changed over the years, but their verdict always remains the same: guilty. Suspicious.
-We’d be better off prosecuting the DOJ and the FTC for colluding against free enterprise.
Posted in Antitrust, Economics, Publications, regulation, Technology, The Market Process
Tagged amd, Antitrust, antitrust crusade, capitalism, competition, computer chips, computers, corporate welfare, crony capitalism, doj, ftc, intel, nvidia, Public Choice, rent seeking
An article in this month’s Info Tech & Telecom News quotes me about proposed stimulus funding for an in-flight broadband provider.
My take: it’s corporate welfare.
Regulation begets rent-seeking. When government assumes the power to regulate imports, domestic firms will lobby to use that fact to their advantage.
Case in point: Home Products International (HPI), an American company, makes ironing tables. So does Hardware, a Chinese company. I personally have no idea which firm makes the better ironing table. That’s for consumers to decide.
Or at least it should be for consumers to decide. But it doesn’t always work that way in practice. HPI seems to have already made that decision for us.
At HPI’s request, the International Trade Administration will continue to add anti-dumping duties to the price of the Chinese-made ironing tables. That way HPI doesn’t have to worry as much about competing. Sorry, consumers.
Is this fair? Of course not. But all too often, it is how regulation works.
Posted in Economics, International, Political Animals, Public Choice, Regulation of the Day, Trade
Tagged antidumping, china, hardware, home products international, hpi, international trade, ironing boards, ironing tables, rent seeking, Trade
Here is a letter I sent recently to The Wall Street Journal:
September 22, 2009
Editor, The Wall Street Journal
200 Liberty Street
New York, NY 10281
To the Editor:
Your article “Bad News for Broadband” (editorial, Sept. 22) hints at, but does not make, a key point: net neutrality proposals are driving a wedge between service providers like AT&T and content providers like Google.
Strange, is it not? Their interests are actually closely aligned. If AT&T upgrades its network, Google benefits from the increased bandwidth. If Google improves its products, AT&T benefits from increased demand for broadband.
Net neutrality proposals give companies the incentive to seek rents at each other’s expense when they could be benefiting from each other’s innovations instead. This must be music to the ears of lobbyists, but how sad for consumers.
Fellow in Regulatory Studies
Competitive Enterprise Institute