Thursday, January 10, 2008

The Lure of Broadband 

Filed As:  Information Technology

Though governments in the U.S. have rarely (in comparison with their European counterparts) owned commercial enterprises, some states and local governments are eager to go into the broadband business. That's a bad move.

When government runs a business, it disrupts the proper balance of responsibility among the various institutions of life, which include family, religion, and business. Government enterprises also expose taxpayers to financial vulnerability due to shifts in consumer tastes and technology.

Still, some governments can't help but think that broadband use is so important that they must get involved. Provo, Utah, for example, could lose $2 million from its venture. One reason is that there's a lot more to broadband than running fibers to the home. Simply put, governments are heading to areas where they aren't competent.

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