Thursday, February 2, 2017

Why Is America So Rich?

This is excellent.

1 comment:

  1. I like to use the break up of AT&T as an example. Before the breakup, 2 long distance rates: state and national $.39 per min national rate. Had to rent your phone from AT&T with 2 options. After the breakup, thousands of versions of the phone in every color and shape, including Mickey Mouse. $.10 long distance rates. Today, AT&T is just a brand purchased by Cingular. Land lines are a dead business.

    There is a new technology in electrical power transmission the reduces leakage by 20%. What incentive does a monopoly have to upgrade? None. What if they were competing and could offer a 20% reduced usage over the competition? Would they be motivated to upgrade?