Monday, March 06, 2006

One Ringy Dingy . . .

Lily Tomlin's Ernestine must be waxing rhapsodic. AT&T has just reached terms to buy out Bell South, reuniting virtually all of the old Ma Bell under one corporate roof--and thus undoing much of the judicial decision in the 80s to break up the Bell monopoly.

I, for one, have been on record for years stating my belief that the Bell system shouldn't have been broken up in the first place. "But don't you believe in the Sherman Anti-Trust Act?" you ask. Yes, I do. But I also have always believed that telephones are in fact (though not in name) a utility, not an optional household expense. Try having a medical crisis and getting help without a phone, if you doubt that a telephone is a necessity in the modern world.

Still, I am not sanguine about this merger. I realize the business climate for telephone systems is not the same as it was in the 80s (due largely to the break-up of Ma Bell to begin with) and I know that there are economies of scale that only enormous companies can attain. However, less competition is in general not a good thing. Besides, the tendency lately is for companies to use the cost savings they gain by mergers to improve their bottom line, not decrease costs to their customers.

True, that is not a bad thing from the corporation's viewpoint. The corporation's goal is to maximize return for its shareholders. That's its job. But there are larger societal implications than making the most money possible. There are not-necessarily-tangible gains to be had from running a business with "enlightened self-interest." Maybe the corporation makes a little less money in this fiscal year--but then it also stabilizes its existence and ensures a steady, long-term income stream by maximizing the number of people who hold jobs, and who thus can afford to buy what the corporation sells.

For the same reasons, I have shaken my head in disbelief at (for just two examples) both the proponents of extreme logging and the airline pilots who propose striking Delta right now. Once all the trees are gone and once Delta ceases to exist, none of them are going to have any jobs. What is wrong with giving a little to get a lot more over the long term in return?

Of course, this all goes back to the current political climate. An awful lot of people who hold powerful political positions seem to have forgotten that the genius of the American system is compromise. They all want their own ideas implemented 100% and don't seem to be willing to give an inch. On ANYthing. Which is downright unAmerican, if you ask me.

Have none of you heard of the concept of a pyrrhic victory? What's the point in winning a short-term goal if you all ultimately go down in flames?

How can you tell if a compromise is a good one, anyway? Simple: if everybody is mad, from the farthest right to the far-outest left, you've achieved a workable solution. Not necessarily the best solution, but a workable one. And that historically is what has made America function.

Our collective loss of memory about the viability of compromise threatens our system, our safety, our security, and our whole way of life far more than Al Qaida ever could. We need to relearn why America survived its first two hundred years and get back to implementing what has made America work if we are to survive another two hundred.

2 comments:

Anonymous said...

Dear Mr. Iconoclast--

You write well and thoughtfully. As a guy who once worked for Ma Bell (hated it-- lasted four months) and who is in the process of being acquired by a competitor who will then own 80% of the global market for our product niche, I can offer a couple of comments:

As you say, phone service is a utility and naturally lends itself to monopoly.

Anti-trust is politics in the age of globalization. And in the current climate, no one cares.

Mikey

Eclectic Iconoclast said...

Dear Mikey,

Actually, it's Ms. Iconoclast . . . but you can call me Eclectic! This may sound odd, but I am flattered that you could not tell from my writing that I am female.

I have a great deal of sympathy for your employment plight.

I keep telling myself the pendulum of neocon excess has to swing back the other way, but I must admit, I wonder whether it will be in time to do any good. Where the heck is Teddy Roosevelt when we need him?