<What may help a distressed telecommunications industry would be temporary government stimulus using fiscal policy to provide either a tax incentive and/or subsidy that would help fund, as an example, broadband deployment.>
You want to fix this, it is not more government intervention it is to correct the following:
You are too quick to forget. What killed the "dotcoms" or the newly emerging telecommunications companies together with their promising technologies, were three things:
1-the absolute corruption of the purpose of the telecommunications deregulation act.
This act was supposed to allow new blood. What it became, whether by perversion or political bribery, was a dance that merely perpetuated the RBOCS. They screwed the CLECs and then paid a $4 fine.
2-The laws that PREVENTED private action, read attorneys, from correcting little lies, until the lies got bigger and bigger.
This reliance on some mystical government solution corrupts the government and only pisses off the pig.
3-The bank "reform" act which starting in late 1999 early 2000, allowed the banks to pay their own loans off with money raised in the stock market and screw every one else.
This ain't Samuelson, and you don't learn this in college. Freidman, who invented the velocity of money theory, lost it. He does not understand how productivity fits into his own model. I wish that were not true.
To cover this up, the government has been pumping M-1 and -2 at about 10% a year for as many years as I can remember. This creates inflation, and if unchecked IN A CORRECT MANNER, creates massive deflation as a self correction. |
