Monday, February 20, 2012

Indirect Government Subsidy

The Computer Industry has grown hand in hand with the government.  Even Steve Jobs had a top security clearance from 1988 to 1990. In the measure government spending is not market driven is the measure that the market signals are misdirected and we get malinvestment. One reason we are plagued by spam, which is 90% of internet traffic, is that the internet was developed first on contract to the government, in an era of monopoly, wherein security was assumed since no one except those with security clearances could access the system.

So we have this convoluted result where after the "natural monopoly" nonsense was dismissed, we had an infrastructure designed based on that as a premise.  From this faulty basis we built a system on top of that.  Now it is hopelessly defective. So we pay for an infrastructure system of which 9/10ths of the traffic is destructive to the 1/10th who legitimately make use of the system. And it cannot be fixed.

As a principle, government should never be allowed to get near funding basic research, since its principles are contrary to sound fundamentals and market justice.

Here is Dell cleaning up with an ad served to a DrudgeReport headline.

Notice the headline which is sure to draw countless government employees for a peek, and then the ad that is served by Dell.


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