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Tech Policy Podcast

#125: An Economics-Free Zone

Tech Policy Podcast

TechFreedom

Technology

4.845 Ratings

🗓️ 16 September 2016

⏱️ 26 minutes

🧾️ Download transcript

Summary

Is the FCC an “economics-free zone?” The agency routinely issues regulations that will have a major impact on businesses and consumers. But does the Commission truly weigh the trade-offs — the costs and benefits of its policies? Not nearly enough, says Hal Singer, Senior Fellow at the GW Institute for Public Policy. In an op-ed for the Hill, he charges that this FCC in particular is more preoccupied with politics than economics. What does it mean to be “economics-free?” What can the agency do differently. Evan and Hal discuss. For more, Read Hal Singer's report, "The Curious Absence of Economic Analysis at the Federal Communications Commission: An Agency in Search of a Mission."

Transcript

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0:00.0

Welcome to the Tech Policy Podcast. I'm Evan Swordsdropper. On today's show, we're talking about the FCC and economics. Is the FCC an economics free zone? As a former economist, a Democrat, Tim Brennan, recently lamented about the FCC's work on net neutrality. Others have criticized the

0:22.4

agency for not engaging in enough economic analysis when making major decisions that impact

0:27.4

the economy. Joining me to discuss this is Hal Singer, a senior fellow at the GW Institute for

0:33.6

Public Policy, that's GWIP or GWip for short. Hal, thanks for joining the show.

0:38.1

Thanks for having me here, Adam.

0:39.2

And Hal recently joined us for a net neutrality event at GW, where we had a nice debate

0:44.4

over the future of the issue.

0:46.3

So we'll be sure to link to that in the show notes and be sure to check out that video.

0:51.0

It was pretty lively.

0:52.5

So Hal, you know, this is a hell of an accusation

0:55.2

to make about an agency that has a Bureau of Economics, that has economists working in it, and that

1:00.7

points to economic analysis in its rulemakings. So how dare you accuse the Honorable FCC

1:08.0

of being free of economics? Where do you draw this accusation from?

1:13.4

Well, you know, first, thanks for having me on again. You know, the quote, econ free, which is,

1:18.3

which is great because it fits conveniently in a hashtag, came from the former chief economist,

1:23.6

Tim Brenno, the FCC, who oversaw economic policy when the FCC was implementing its open Internet order.

1:30.3

So that's the genesis of the idea, but you know, if you start to dig into it, a lot of things point in the same direction.

1:38.3

For example, what we found is that the FCC has basically stopped doing economic analysis.

1:43.3

Now what's important to point out is

1:44.8

this should not be interpreted in any way as a dig on the economists who are there. In fact, in the paper,

1:50.3

we say that they likely have the best economists in this area. It's just that those economists

1:54.4

don't have any influence of the FCC. A few points. Number one is that, you know, they conducted

...

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