November 30, 2007
Is there war on your t.v.?
A bureaucratic agency should not be using a 20-year-old-legal clause to implement wholesale policy changes that hurt consumers and hurt minority television programmers.

Sounds like Alan Keyes or Walter Williams or maybe even Lopez. None of the above. Actually, it's Jesse Jackson.

He's reacting to FCC Commissioner Kevin Martin's technicality-driven push "to assert nearly unlimited powers to regulate cable television if more than 70 percent of households subscribe to cable." The last sentence is quoting James Gattuso and Adam Thierer, "TV Train Wreck: Martin, Markets, and the Potential for Regulatory Disaster", which is also where the Jackson quote comes from. Gattuso and Thierer say Martin has proposed a lot of new regulations, a disproportionate number of which

have been aimed at cable television, so much so that press and industry analysts now speak of Chairman Martin’s ongoing “war on cable.”

The WP gives some further context:

The Federal Communications Commission is scheduled to vote today on whether it will consider applying broad regulations to a cable television industry that has been largely unregulated at the federal level for more than 20 years.

A vote could begin a process resulting in a national cap on cable ownership, with no cable company allowed to have more than 30 percent of all U.S. subscribers, a ceiling that Comcast Communications is near. It could also reduce prices that cable companies could charge smaller or independent programmers to lease access on unused channels.

The FCC has the authority to impose such regulations only if 70 percent of all U.S. households are able to subscribe to a cable service with at least 36 channels and if 70 percent of those households subscribe to such service. The first threshold was crossed years ago; nearly all U.S. homes are now "passed" by cable, to use the industry term.

Here's Gattuso elaborating on Jesse Jackson.

Posted by Edward J. Lopez at 05:49 PM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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