Yesterday’s Sell-Off Confirms It Was a PIG Downgrade

by Mike Wendy on August 9, 2011

I think yesterday’s sell-off was clear confirmation that the downgrade we just saw (and with more coming) wasn’t the result of any particular Party, but rather, it was a PIG (public interest group) Downgrade.

The 634-point stock market drop reveals what Americans, and the markets that reflect them, have long believed – that policies based on redistribution, of making those with means pay their “fair share,” are basically hooey.

Yes, hooey – meaning that these policies are unsustainable and parasitic, harming the very body they’re intended to help.

For the better part of a decade, the PIGs have been at the forefront of this “redistribution,” urging ever-greater policy efforts to “level” opportunity so that outcomes may become “fair and equitable.”

Over the past two years in the tech space we’ve seen a prime example of this: At the incessant prodding of PIGs – such as Free Press, Public Knowledge, New America Foundation, Media Access Project, and a whole host of others (who, like the former groups, find support from a litany of progressive funders, such as the Ford Foundation and Soros’ Open Society Foundations) – the FCC imposed needless Net Neutrality regulation on network providers last December.

I say needless because, like the redistributive policies driving the present debate here in Washington, Net Neutrality regulations remain at odds and are wholly incognizant to the underlying growth engines that make the Internet work.  When you get right down to it, these rules are really designed to accomplish just one thing – take the private property of network providers and give a “fair share” of it to others in the ecosystem.

From ability to “needs” – though one might be hard pressed to see Google, the primary recipient of Net Neutrality’s redistributive effects, as being truly “needy” (with GOOG trading at ~$560 per share, and having $39 billion cash on hand).

As one well-regarded PIG advocate recently pronounced:

“Free Speech rights are more important than property rights…[T]he Internet IS Free Speech…[T]he net is as fundamental a right itself as the rights that are exercised through it.”

Translation: The “public interest,” fairness and equity demand that the nearly trillion dollars of Internet investment made these past five years by network providers must be redistributed / transferred to the public weal.

I think America and the markets reject this, with yesterday’s market free-fall being the most recent confirmation of that rejection.

They see that PIG redistributive policies are bad for America.   They know that the downgrade was a PIG Downgrade.


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