Wednesday, July 20, 2011

Breaking News! When the Government Raises Costs on Businesses, Businesses Raise Costs for Consumers

Rocket Science!!

More Breaking News: As you may have noticed, the sun rose again today.

The Huge Government crowd always demands ever more regulations of and more taxes on those who do the hiring in the United States – the “evil corporations” who don’t care about anything but “obscene profits.”


The Huge Government crowd is, of course, woefully ignorant about how businesses – and business – work.

The “evil corporations” can’t make “obscene profits” unless they care about something else – what their customers want.

Customers almost always want the same thing from every company – the best possible goods/services at the lowest possible price.

The companies that best deliver this do well. The ones that do not, do not.

Pretty simple stuff. But it is stuff that fully eludes the Huge Government crowd.


Another facet of their glittering business ignorance is their utter failure to grasp that when they raise the cost of doing business – whether by raising taxes or imposing more regulations – they raise prices for consumers.

Which belies the alleged raison d’etre for the “consumer interest” groups – who claim to be interested in the consumer, but somehow always end up on the side of Huge Government.

This Huge Government gaggle seem to operate under the absurd assumption that businesses have pots of money just sitting around – into which they simply dip whenever the Huge Government crowd makes it more expensive for them to do what they do.

Here on Planet Earth, that isn’t the case.

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Which brings us to the Netherlands, the United States and Network Neutrality.

The Netherlands last month imposed a strict brand of Net Neutrality – which will dramatically increase the cost of doing business for Internet Service Providers (ISPs).

So this week the largest Dutch telecom – KPN – announced big across-the-board price hikes.

Shocker.

KPN had to charge everyone more – because Net Neutrality prohibits them from charging those who use more bandwidth more.

The petroleum equivalent would be the person buying fifty gallons of gasoline and the person that purchases five paying the same amount for the fill-up.

Stupid, huh?

Net Neutrality is forcing grandparents who do nothing more than email their grandchildren to pick up the additional tab for bandwidth hogs like online movie addicts and online gamers.

Oh, and Google.

This monstrous company (with huge profits, yet paying virtually no taxes) use tons and tons of bandwidth – but pushed for Net Neutrality regulations here in the U.S. to make us pay their freight.

But wait, you say. Aren’t they also an “evil corporation?”

No, they are on the side of the angels. Or at least the Democrats.

Google was also a hay-yuge supporter of President Barack Obama in his 2008 run for the gig.

Google Chief Executive Officer (CEO) Eric Schmidt was then named to President Obama’s transition advisory board, and then to the President’s Council of Advisors on Science and Technology.

So Google gets a pass on all the “evil corporation” talk – and they get what they want out of President Obama and his fellow Democrats.

Like Net Neutrality.

In less than three months, our version of Net Neutrality will go into effect. Soon thereafter, we will almost surely begin paying more for our Internet.

So as to subsidize Friends of Obama like Google.

Stupid, huh?

Just another fabulous example of the business cluelessness – and political hackery – of those of Huge Government mindset.

by Seton Motley

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