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Source link: http://archive.mises.org/18850/fcc-modernizes-another-corporate-welfare-program/

FCC “modernizes” another corporate welfare program

October 27, 2011 by

In the days when the Bell System had a monopoly on phone service, people used rotary phones asked an operator to connect them, and wireless calls were not even a gleam in Dick Tracy’s eye, the government began redistributing some of Bell’s profits to provide rural phone service to a nation of farmers. Nearly a century later, the government is still taxing telecoms – and then giving it right back to them (and more) in a complex system of taxes and subsidies in which telecoms route calls through rural areas in exchange for kickbacks from the FCC. The FCC seems have realized that the system is out of date and is “modernizing [the system] for the era of Steve Jobs and the internet future he imagined.”

It would be logical to assume that Steve Jobs would have advocated that the FCC end the taxes/subsidies, fire the bureaucrats, and stop stealing other people’s money. Right? Right?


Daniel October 28, 2011 at 9:34 am

Is there a book that covers the subject of how to become wealthy using the government?
Something comprehensive with historical examples all over the world.
It would be a great killer of the silly idea that government can/will “regulate” and make the free market “better”

Bruce Edward Walker October 28, 2011 at 12:10 pm

The FCC’s decision isn’t surprising — but it’s wrong. A study released just last summer by Scott Mackey identified 59 percent of USF fees went for administrative costs rather than what the monies were intended for. If programs such as this must exist — and I argue, especially in this instance, they’re not — it would make more sense to target specific areas rather than shovel fees into silly projects.

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