Save The X Industry, Save The World.

A recent issue of BusinessWeek raises interest in the classic debacle economist Henry Hazlitt outlined so clearly years ago in chapter XIV of his book, Economics in One Lesson.

These days, most telecom companies are moving away from traditional copper wiring, and instead looking to move to more efficient fiber networks. To complete the move is a multi-billion dollar jump, and giants like Comcast and Verizon (and customers alike) will benefit from the investment. The old copper lines are "obsolete and expensive" in terms of the efficiency of the fiber networks and smaller companies are protesting vitriolically to the FCC (which could take months...maybe years to get around to a decision), especially as more and more copper lines these small companies lease through the giants mentioned above are shut down.

Most individuals are familiar with the ideas of farm subsidies and steel tariffs -- things set in place to artificially "protect" some groups at the expense of others, but Hazlitt makes no exception and telecom industries are not excluded. The idea of "saving the X Industry" applies to all industries and products across the board, and for good reason.

Actually, he says it best here:

"Improved methods of production must constantly supplant obsolete methods, if both old needs and new wants are to be filled by better commodities and better means" (86).

Thus, as long as the fiber network transition is put on hold, heavy costs will only continue to burden companies, especially those refusing to do a simple net present value analysis of the long term benefits of investment now as the technology advancement arises for better quality lines, rather than a rocky, hindered, ugly and government-involved transition later --which is no doubtthe slowest most painful way to succeed in offering anything that's better for everyone including companies and customers alike.

The long term production horizon offers more in the way of knowing what's best all around, rather than sticking to what's familiar merely because it works now. Simply because the "familiar" works only until it falls apart, and no one ultimately wants to be left with their pants down.