More Crony Socialism from the Obama Administration?
No Administration in our nation’s history has cut more government deals with campaign contributors than the Barack Obama Administration. They have increased federal spending by nearly $900 billion, to $3.9 trillion – and the President has sought to get as much of it as possible to his cronies.
And he’s not just rewarding his friends – he’s punishing his enemies.
This isn’t picking winners and losers – this is picking losers at the expense of winners.
This is the government intervening in the private sector in unprecedented, grotesquely huge and sweeping fashion. Perniciously partisan fashion.
Looming before us is a government “incentive” spectrum auction. Where broadcast television stations are given an incentive – that would be money – to sell some or all of their spectrum. Which they were once upon a time given free by the government (cell phone companies pay for theirs).
Spectrum is the airwaves we use for all things wireless – from cell phones to keyless car fobs. Spectrum is real estate – land on which to build wireless services. It is absolutely a finite resource. Our cell phone networks are running out of space – video watching especially is chewing up the room.
Thus we need to maximize the effectiveness of this spectrum auction. And that means it should be, well, an auction. Where anyone who wants to bid can do so – however much they want, on whatever spectrum they wish.
But this is the Obama Administration – rarely do they pass on an opportunity to play anti-free market favorites. And there are anti-free market folks begging them to play favorites.
Some Media Marxist groups are demanding that the government prevent AT&T and Verizon from openly bidding on any spectrum they wish. Why? Because these Leftists have deemed these two to be too successful – and they want the government to spread the wealth around.
Spread it to whom? Everyone else besides AT&T and Verizon.
Well, Sprint is #3 in the nation. They too want the government to Crony Socialize the auction. To their direct benefit – every time the Feds block AT&T and Verizon from bidding, it makes it easier and cheaper for Sprint.
But Sprint ain’t exactly hurting. They have about 60 million subscribers. And they have been aggregating cash and power.
SoftBank has invested approximately $21.6 billion in Sprint…(including) an aggregate $5 billion of new capital….
And how are they doing on spectrum? Let’s ask them:
Dan Hesse – Sprint CEO: “We clearly have a strong spectrum position now with 120 megahertz of Clearwire spectrum in 90% of the top 100 markets….”
Jennifer Fritzsche – Wells Fargo Analyst: “Obviously, you (Sprint) have a more spectrum than any of those big four….”
No excuses – or anti-free market, Crony Socialist government assistance.
Here’s to the Obama Administration eschewing these Leftist requests, and letting an auction just be an auction.