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Cato's Thierer Misfires

As one of the "commons crowd" he refers to, I'm blown away by Adam Thierer's stunning cluelessness in his TechKnowledge Newsletter piece about "Howard Dean's Plan for the Internet." He complains that, by suggesting that the Internet be kept free and open for all to use, we're guilty of "collectivist" thinking that opposes free markets and property rights. He also notes that we're guilty of the worst possible sin - advocating democratic rule. He feels that radio spectrum should not be open to all, but should be regulated as a "market," and Larry Lessig notes the fallacy here:

Cato apparently believes it is a loss if the FCC doesn't get the chance to establish and regulate a "market" in spectrum; they like the idea of more middlemen, and hence more overhead, for innovators and technologists to negotiate over before they bring their products to market. Or at least, Cato's supporters (like Murdoch) like that picture best -- because with such a powerful and successful lobby throughout Washington, they'll be in a good position to "guide" this market best.

But test your own views: Think about the market for newspapers. In principle, we could imagine creating a property right called "the right to publish a newspaper" which the government would auction off in a particular market. Then people who wanted to publish a newspaper would not only have to compete in the market of newspapers, but also in the market for the right to publish a newspaper. I can understand the theory that says that such a "market" might improve efficiency. But I don't believe that theory is correct. I think one market -- the market in newspapers -- is quite enough. Nothing would be gained by adding another on top.

Isn't that different, you ask? Wouldn't a "property right" to publish a newspaper violate the First Amendment. Indeed it would -- and so too does much of spectrum regulation, as Benkler and I argued (subscription required) half a decade ago.

jon posted this at 9:52 PM
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