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Anorak | BT’s really screwing up this broadband, isn’t it?

BT’s really screwing up this broadband, isn’t it?

by | 14th, August 2013

THE Guardian is ranting and railing about how appallingly BT is rolling out fast broadband around the countryside. There’s a useful economic point to be made about this :

Given that everyone agrees that getting Britain online is a public good, what do those giants at the Department for Culture do? Why, award juicy subsidies to private companies to bribe them to do the work.

The point being that a “public good” is the justification for a subsidy from taxpayers. It’s one of the few reasons that even right wing bastards like me will accept. It’s a standard conclusion in economics: public goods are very difficult to make money out of, that’s the nature, definition, of a public good. Therefore we get less of them than we would like and the solution is for there to be a subsidy so we get as much of the public good as we desire.

This is why the government pays for vaccinations and primary schools: they’re public goods. So, the idea that there should not be a subsidy for

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Posted: 14th, August 2013 | In: Money, Technology Comment (1) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink