Saturday, March 21, 2015

Patterico's Pontifications » My Hopefully Final Response to Dan Gillmor on Net Neutrality: Why I Trust the Market Over Government, Every Time

Patterico's Pontifications » My Hopefully Final Response to Dan Gillmor on Net Neutrality: Why I Trust the Market Over Government, Every Time


The argument comes down to this: in a free market system, consumers’ ability to fight Big Business by choosing to spend money elsewhere isvastly superior than voters’ ability to fight Big Government by voting for someone else. Let’s look to public choice theory for some of the reasons, which (as you will see) are largely interrelated.
First, there is the issue of whether the actor is informed. Now, obviously consumers are not always as informed as they could be. However, when you compare an important purchase to an important election, a consumer’s incentive to research his purchasing options is much greater than a voter’s incentive to research politicians or political issues. Consumers mulling over a new computer or car or iPad are much more likely to spend time looking over resources containing detailed reviews and specifications about competing products, as compared to the time the typical voter spends researching a candidate. Part of the reason is that a purchase costs money. A vote costs nothing but the time it takes to cast.
Second, and related, is the issue of whether your action will have an effect. This can be expressed in terms of the existence and immediacy of incentives to make a good choice, and disincentives to make a bad choice. It is related to the first issue, because the lower your incentive to research, the less informed you are likely to be.
When you choose to spend your dollar on Product A vs. Product B, this has an immediate and undeniable effect on your well-being. You personally enjoy the benefits of your selected product, or feel the ill effects of its shortcomings. If your computer runs like a dream, or if your car is a lemon, these experiences provide immediate and concrete feedback to your dollar-spending decision. True, your one dollar or purchase will not make or break a company, but the incentive to reward good products and punish bad ones is clearly strong, and those strong incentives add up collectively.
For a voter, by contrast, your feedback is weak and sometimes nonexistent. If your preferred candidate (the one for whom your voted) loses, you will never feel the consequences of your choice, good or bad. If your preferred candidate wins, he has no obligation to live up to his promises. And in any event, even if he does, some of the promises he carries out may offend you, unless you happened to agree with him on every single issue.
This is not a situation that incentivizes being an informed voter.
Let’s compare apples to apples to show how stark the difference in incentives truly is. Imagine the following scenario:
You go to a store to buy a product for your company. Your company does not know you are the one making the purchase, so you will never be held accountable if the purchase turns out to be bad. Your purchase will cost you nothing, personally. Any effect the product’s quality has on your life will be so indirect that you will rarely think about it. The store policy is that you may not get the item you choose. If you do happen to get the item you choose, there is no guarantee it will work.
How much research are you going to do for that purchase, compared to the research you will do on a product you are buying for yourself?
Voters are also aware that, unless the election is tied and their vote breaks the tie — which never, ever, ever happens — their vote is utterly and completely meaningless. So voters rationally conclude it’s pointless to vote — and if they do, they rationally conclude that it is pointless to become informed.
All this leads to a pretty dismal reality. No company can consistently provide bad products and survive for long. But politicians can offer the same bad service, year in and year out, and people will routinely show up and vote for the least bad option. There is no real choice and your act has no effect.
So the free market wins out as regards your ability to effect change and your ability to be informed. But meanwhile, what about the supposed benefits of the First Amendment? Gillmor tells us that companies are not bound by the First Amendment (which is true) while the government is.
Me, I don’t trust the courts to protect my rights to free speech. Call me cynical, but that’s where I am. We live in a country where free speech rights have been violated by government since the very founding of the nation, with regularity and impunity. Yes, the First Amendment has protected us at times. Other times, it has not — just ask Eugene Debs.
I’ll take the market, thanks very much.

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