Smaller government or smarter governing?

One of the conservative ideologies in governing is that we need a smaller government and freer enterprise. The premise behind that thinking, I suspect, is that we trust companies to do well by doing good. The problem is they don’t often do so.

Here is the new initiative by AT&T

Enjoy more data. Starting with your October 2019 bill, you’ll get an additional 15GB of data on your Mobile Share plan. This bonus data comes with a $10 price increase. AT&T confirmed to The Verge that there’s no way to opt out of this “bonus.” Here’s the company’s statement:

“We are communicating with some customers regarding changes to their mobile plans. Customers have the choice to change their plan at any time and can always contact us with questions or to understand their options.”

This probably won’t surprise AT&T customers one iota, of course — this is the company that was just finally slapped on the wrist with a $60 million fine for throttling what were supposedly “unlimited” plans back in 2011, and the company that’s now pocketing an extra $800 million in “admin fees” every year after more than doubling that inexplicable surcharge last June. This is the company that’s now making you pay its property taxes on your business internet bill, while it repeatedly jacks up the rates of its few remaining grandfathered unlimited cellular plans.

Source: The Verge

The predatory practice is so disturbing that I don’t have the word to describe it.

Another example is Boeing with their 737 Max woe.

“The culture was very cost centered, incredibly pressurized,” Adam Dickson, who worked for Boeing for 30 years and led a team of engineers that worked on the 737 Max, told BBC Panorama in a program airing Monday night.

“Engineers were given targets to get certain amount of cost out of the airplane,” he added.” Certainly what I saw was a lack of sufficient resources to do the job in its entirety.”

Source: Business Insider

The cost-cutting goal at Boeing led to the company using $9/hour engineers on the planes that sell for millions of dollars and can decide the fate of thousands of passengers. This is a company that enjoys a duopoly of the sky, along with Airbus.

There are certainly a lot more examples of how companies do not volutarily act in the interest of consumers. You will find out more by watching a few episodes of either Patriot Act or Last Week Tonight.

My point is that companies care more about bottom line than consumer interest. Sometimes, those two issues align and be sure that they will advertise the hell out of what they do “for you”. Unless there is a party that can help keep the companies in check, consumers will be at their mercy. There are a few cases in which consumers can threaten the existence of companies such as the #DeleteUber movement a while ago, which suddenly kept Lyft from administration. However, those cases are not common or not common enough.

That’s why we need rules and governments to enforce those rules. It is understandable that red tape and unnecessary regulations are a pain and should be removed (trust me, as an immigrant dealing with all these immigration policies, I already had a bit of American bureaucracy). But that means we need to be smarter in governance , not less governance. By removing all regulations, we help companies reduce compliance costs and be legally less responsible.

As citizens, we don’t have the time and resources to understand all these regulations and conduct studies on how they affect business. The job is left to people who are dedicated to making laws: lawmakers. Hence, whenever somebody mentions that we ought to remove regulations, be sure to ask who and what will protect us citizens from the excessive corporate greed?

Are autonomous vehicles the answer to many businesses’ problems?

It’s not uncommon nowadays that businesses mention autonomous vehicles as an opportunity for growth and profitability. Unless their vehicles are self-driven, ride-sharing services such as Lyft or Uber don’t particularly promise a sure path to profitability at the moment. In an article published last week, the CEO of AT&T mentioned self-driving cars as a reason for his optimism

Even Warren Buffett quails at the prospect of competing in such a powerful field of rivals. “Everybody has just got two eyeballs, and they’ve got x hours of discretionary time … maybe four or five hours a day,” he said recently at a charity event, speaking generally about the entertainment industry. “You’ve got some very, very, very big players that are going to fight over those eyeballs. The eyeballs aren’t going to double. You have very smart people with lots of resources trying to figure out how to grab another half-hour of your time.” His assessment: “I would not want to play in that game myself. That’s too tough for me.”

Any business that Buffett wants to avoid sounds unpromising, but Stephenson rejects the legendary investor’s premise. Acknowledging that “there are only 16 waking hours in the day,” he says, “Well, we haven’t filled up the 16 hours yet.” He nods toward his office window over Commerce Street with its busy traffic, which he says will ease when 5G networks enable autonomous cars. “When you have the lion’s share of those cars autonomous, for the average person that’s another two hours of availability of screen time, consuming video.”

AT&T Has Become a New Kind of Media Giant

Are autonomous cars the answer though?

Let’s say, generously speaking, 10 years from now all the cars would be self-driving. What would it look like? If the cars don’t carry passengers, without drivers, where would the cars go? Would all the cars keep driving endlessly till they are called to pick up passengers? Would the cars park on the street and if so, would there be enough space to accommodate all the cars? If the cars park in a garage somewhere, how would the garages be planned and constructed so that the garages are all well spread throughout a decently big area?

There can be many more questions that would result from having mainly autonomous vehicles on the streets. I can’t think of them all, but you get the idea. Right now, we don’t even have many on the streets yet, let alone answering questions and tackling problems that ensue the arrival of self-driving cars. Additionally, I personally don’t believe that we can have all cars or the majority of the cars self-driven on the streets in the next 10 years. I wrote something about it here.

If it takes a long time for self-driving cars to be realized and populated, can the likes of AT&T, Uber or Lyft wait till that time? AT&T’s debt is almost $200 billion and as Warren Buffett said above, and I agreed with his view, that the competition for eyeballs wasn’t going to get any easier. Uber or Lyft keeps losing money operationally and will be expected to continue that path, unless self-driving cars come along. 10-15 years of losing millions, if not billions, of dollars every year doesn’t seem a sort of business that investors like. And before any comparison between Uber and Amazon is raised, the two are far from being similar to each other. Look at their respective operating income.

Source: Wall Street Journal

Obviously, some years from now, it is possible that I may be embarrassed for saying all this and the fine folks in Silicon Valley or that somewhere in the US can deliver the miracle. Until then, I prefer being pragmatic to venturing out too far into fiction and imagination.