The Infrastructure Bill and Broadband – Subsidizing Corruption

The proposed $65 billion infrastructure package for the development and expansion of broadband services is supposed to provide services to rural communities and to low income households. The reason that the prices are so high for broadband is that cable companies were made monopolies created by corrupt local government like the City of Los Angeles.  The broadband service became a new monopoly cash cow when they started losing television subscribers to the Internet. Politicians now want to give these monopolies billions because they have lost their monopolistic benefits by virtue of technology expansion.

The bill claims that this action is necessary so that “individuals and communities have the technology capacity that is needed for full participation in society and economy.”  If these groups have been excluded they have been excluded for at least the last 40 years.  I know for a fact because I tried to do it forty years ago.

In 1992 Congress passed a bill which is known as “Cable Television Consumer Protection and Competition Act of 1992”. The title reflected the grand lie that was being told to the American public about what the law contained. The consumer protection portion stripped local governments, which had created the cable television monopolies, of any power over rates or service by the monopoly provider. The competition portion, of the bill, was exactly the opposite. It protected the monopolies and made sure that no one could challenge those monopolies although they were in violation of the Constitution, according to the U.S. Supreme Court (City of Los Angeles vs Preferred Communications 476 U.S. 488 (1986)).

Rather than see their friends lose revenue after the many years of gouging the American public, Joe Biden and Congress have decided to subsidize the monopolies by pretending there is some benefit to low income households.  This is a glaring example of welfare for the rich.  The corrupt always want to pretend that they are looking out for the poor. Once again this is just a lie. What they intend to do is distribute these funds to the monopoly cable television companies to make up for the lost revenue they are experiencing because of increased speeds for cell phones and digital streaming.

While they talk of infrastructure, the same government has refused to allow local low income and minority communities to build their own infrastructure for cable-television with their own money and without government subsidies. This has been long hidden from the American public. From 1980 to 1992 the City of Los Angeles spent more than $10 million to prevent competition in the cable television industry. Now the Los Angeles will receive up to $500 million to cover their corruption.

The 1992 Cable-Television Act was supported and voted for by both Joe Biden and Chuck Schumer.  The effect of the law was to protect corrupt local governments like Los Angeles and the beneficiaries of that corruption. 

The issue of expanding broadband access will be solved by satellite utilization and by private industry before the effect of the $65 billion can be felt by anybody in the inner-city or low-income communities. This $65 billion is mostly a payoff for the rich monopolies they created decades ago. The insinuation that the government is somehow looking out for low income people and those in rural areas is once again just a deceptive lie created by a bunch of hypocritical corrupt politicians. 

From 1980 to 1992 a minority company attempted to invest $50 million in the lowest income community of Los Angeles to provide independent cable service that would be provided by monopoly companies. Still no infrastructure was allowed in poor and minority communities because no investment was allowed by those communities within themselves. There are laws against monopolies in most industries and the restraint of trade created by monopolies is covered by a series of laws known as antitrust laws. But the hypocrites and corrupt political officials simply ignore the reality of what has happened in order to provide a giant gift to their rich political friends.

Don’t be deceived or tricked they have some interest in providing service to rural areas or the low-income communities because they clearly haven’t cared for the last 40 years. The lie was confirmed in 1992 when the Democratic Congress overrode the veto of the President of the United States to make sure this corruption became law.

The $65 billion broadband fund that is part of the proposed infrastructure Bill that is being pushed by Congress and the President is little more than a con game. Coming from Joe Biden and Chuck Schumer this is the ultimate in insults to the American public. These 2 men were major supporters of the 1992 Cable-Television Act which provided protection for the monopolies created by corrupt local governments throughout the United States. Let’s go Brandon.

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