2010 Year in Review: The Bad

Wednesday, January 12, 2011 1:00 pm Daniel J. Summers

This is the middle post of my three-post “Year in Review: The Good, the Bad, and the Ridiculous.” The linked words in that title will take you to the other two posts. Here are the things that I considered bad in 2010.

Wikileaks

Wikileaks began as a whistleblower website, where people could release information about injustices. In 2010, they made a leap into classified government documents. Purportedly stolen by PFC Bradley Manning, these documents were not only embarrassing for some government agencies, the information contained in those documents identified informants and other non-public allies in the War or Terror. While the creator of Wikileaks, Julian Assange, is currently in custody (due to some somewhat-questionable sex crime charges), there is little legal enforceability on a citizen of another country disclosing secrets of another. Several US companies have severed ties with the site, and kudos to them for that; however, I believe that the net result of this will be bad.

ObamaCare

What I've identified as the most ridiculous quote of 2010 (“We have to pass the bill to find out what's in it”) was spoken in reference to this bill. Going by the formal name of the Patient Protection and Affordable Care Act of 2010 (colloquially known as “Obamacare”), this bill enacted many reforms to our health care system, most notably in the area of insurance coverage. The bill mandates that all people purchase and retain health care insurance (a provision already rule unconstitutional), stipulates that insurers must cover preexisting conditions and may not drop insured people for certain conditions, and provides for the creation of a public co-op. There may be more, but at 1,300+ pages, who knows?

We are already seeing the unintended consequences of this legislation. Insurance rates are going up, with many companies raising rates 25% or more. This shouldn't catch anyone by surprise; what is called “insurance” in the bill is more like a membership. Insurance is a bet against bad things happening, which is the entire reason preexisting conditions aren't covered. Where's the bet when you know the outcome? Insurance rates are not designed for this type of use. (Conspiracy theorists could speculate that those who passed the law knew this. They really wanted public control, but the people didn't want it - instead, they passed a bill that will bankrupt the insurance companies. Then, who rides in to save the day? Liberal government!)

Insurance is but one of the problems with this bill; there are many others where the unintended consequences outweigh the intended benefits. Hopefully, the 112th Congress can undo this monstrosity before most of its provisions become effective. Until then, though, this remains on the bad list.

The FCC Implements Net Neutrality

“Net neutrality” is the concept that network service providers (ISPs, cell carriers, etc.) must treat all network traffic equally. This means that they cannot favor certain types of packets (ex. their own video streaming) while slowing down other packets (ex. competitors' video streaming, voice over IP). While, on the surface, this sound good, it fails to take into account bandwidth considerations, and the consequences of that bandwidth being used up. A TV signal can be broadcast through the air, and whether one TV or a million TVs receive the signal, the signal is the same; however, the same signal received over the Internet must be duplicated once for each end point receiving it - it is a request-response network. It's not as cut-and-dried of an issue as some of its more ardent supporters would like to paint it.

Congress has failed to implement net neutrality legislation, and courts have ruled that the Federal Communications Commission (FCC) has no jurisdiction to implement it on its own. That didn't stop the intrepid FCC, which issued net neutrality guidelines near the end of the year. Hopefully 2011 will find these regulations to be unenforceable; as it stands now, though, these regulations are bad, and have the potential to slow innovation around the network.