How The Government Thinks

One popular catch phrase nowadays is “thinking outside the box,” which refers to thinking beyond one’s normal purview. The next logical question is “how big is this box?” When it comes to the government, the various boxes are so small, one can only laugh. Unfortunately, there are so many boxes, there is no aspect of life not covered by a government box.

The government actually likes to make its boxes, or boundaries of responsibility, as small and numerous as possible. Building a house in Denver, for example, requires the approval of 9 separate departments, occupying 3 separate buildings.

Those are small boxes, but the regulatory small thinking goes nano whenever technology is concerned. The government, in general, regulates technology rather than markets. For example DSL and Cable modems are essentially the same thing in the eyes of consumers, but they are regulated entirely differently by the FCC. Likewise, cable TV and satellite TV are separate markets to the small box thinkers in Washington.

In the latest absurdity, one should not be surprised to learn that old fashioned radio and radio delivered over the internet are governed differently. Sure, they both deliver music to people. Sure, they are the same things based on different technologies, but shouldn’t the government treat them equally? Indeed, since internet radio doesn’t consume valuable radio spectrum, shouldn’t internet radio get a break?

Well, no. Internet stations pay a much higher royalty fee than satellite or old fashioned radio. Indeed, Pandora, one of the most popular internet radio stations, predicts they will go out of business if royalties are not corrected. The government alone is causing a burgeoning industry that provides valuable diversity in media content to shut down.

All this is another symptom of the government mentality – small minds in small boxes making damaging decisions. Since the nature of government gives no rewards for risk taking or “thinking outside the box,” don’t expect change any time soon. If an obscure government office can single handedly shut down internet radio, imagine what other harm is done every time we give a little more control of our lives to Washington.

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