Showing posts with label corporate corruption. Show all posts
Showing posts with label corporate corruption. Show all posts

Saturday, July 28, 2007

Why are our "high speed" connections so slow?

Paul Krugman's column last week explains why, and illustrates why Lafayette Utilities had such a hard time getting approval for its "fiber to the home" program.

The numbers are startling. As recently as 2001, the percentage of the population with high-speed access in Japan and Germany was only half that in the United States. In France it was less than a quarter. By the end of 2006, however, all three countries had more broadband subscribers per 100 people than we did.

Even more striking is the fact that our “high speed” connections are painfully slow by other countries’ standards. According to the Information Technology and Innovation Foundation, French broadband connections are, on average, more than three times as fast as ours. Japanese connections are a dozen times faster. Oh, and access is much cheaper in both countries than it is here.

As a result, we’re lagging in new applications of the Internet that depend on high speed. France leads the world in the number of subscribers to Internet TV; the United States isn’t even in the top 10.

What happened to America’s Internet lead? Bad policy. Specifically, the United States made the same mistake in Internet policy that California made in energy policy: it forgot — or was persuaded by special interests to ignore — the reality that sometimes you can’t have effective market competition without effective regulation.

Krugman is right. California thought that the so-called "free market" would solve it's energy woes. Instead, the energy companies, and Enron especially, made damn sure that the market was anything but free. Telecom companies have a similar stranglehold on the internet. In Lafayette, Bellsouth -- now AT&T --fought tooth and claw to keep it that way. They are just as willing to screw over "Grandma Millie" as Enron was.

Thursday, June 28, 2007

Feds fail New Orleans: the Details

From Think Progress

EPA allowed toxic chemicals to harm poor Katrina victims: A GAO report revealed that EPA publicly downplayed the risk of asbestos inhalation, which is often released during home demolition, to city residents and failed to deploy air monitors in predominantly African-American neighborhoods. Furthermore, EPA waited nearly eight months to inform residents that short-term visits could expose them to dangerous levels of asbestos and mold.

FEMA ignored its own hurricane plan: Prior to Katrina, FEMA created a “Southeast Louisiana Hurricane Backup Plan” which forecasted specific consequences and action-plans in the event of a hurricane. But “post-Katrina FEMA documents demonstrate that that the plan was never implemented.” The day before Katrina hit, FEMA Deputy Director Patrick Rhode sent an e-mail to Michael Brown’s assistant with the subject line, “copy of New Orleans cat plan,” stating, “I never got one — I think Brown got my copy — did you get one?”

FEMA guaranteed billions in profits for big companies: Following Katrina, federal agencies “doled out more than $2.4 billion in cost-plus contracts,” which “offer companies no incentive to save money or keep costs from ballooning.” FEMA was responsible for nearly 94 percent of all of the hurricane-related cost-plus contracts, with the remainder being issued primarily by the EPA and U.S. Air Force.

Some very interesting comments at the end of the article. Did Chertoff really wait 36 hours before turning over authority to Brownie?

Thursday, June 21, 2007

Calling it by its real name.

State Farm accused of Katrina racketeering
Wednesday's lawsuit on behalf of Mississippi Gulf Coast homeowners is the first in which Scruggs and his legal team accused an insurer of violating the civil Racketeer Influenced Corrupt Organization Act, commonly known as RICO.

Scruggs, who helped negotiate a multibillion dollar settlement with tobacco companies in the mid-1990s, said he had filed similar civil RICO suits against tobacco companies. They are tougher cases to build, but can carry stiffer penalties, he added.

"The facts call out for this kind of remedy," he said. "It puts their license to do business at risk if they lose (the case), for one thing."

About time someone called them out. Racketeering is exactly the right word for it.