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The Economists' Voice 2.0The Financial Crisis, Health Care Reform, and More$
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Joseph Stiglitz and Aaron Edlin

Print publication date: 2014

Print ISBN-13: 9780231160155

Published to Columbia Scholarship Online: November 2015

DOI: 10.7312/columbia/9780231160155.001.0001

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Net Neutrality Is Bad Broadband Regulation

Net Neutrality Is Bad Broadband Regulation

(p.215) Chapter 28 Net Neutrality Is Bad Broadband Regulation
The Economists' Voice 2.0

Robert E. Litan

Hal J. Singer

Columbia University Press

In 2010, private-sector job creation was a paltry 100,000 per month. At that pace, it would take over three years to restore just the nearly four million private-sector jobs lost during the first six months of 2009, let alone absorb new and discouraged workers coming into the labor force. Jobs require private investment but private capital is waiting on the sidelines. The trepidation among investors can be partially attributed to their uncertainty over the government’s appetite for further regulation. Experience shows that in order to preserve private-sector incentives to invest, especially in a capital-intensive industry like telecom, policy makers should intervene only to correct a market failure. This chapter argues that the Obama administration’s evolving policies in the telecom arena do not meet these criteria. It then discusses what the Federal Communications Commission should do to encourage investment by both Internet providers and content providers.

Keywords:   employment, job creation, investment, private capital, weak consumer demand, telecom industry regulation, Internet providers, Federal Communications Commission

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