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Online Insanity

That’s a nice Golden Goose…Mind if I slaughter it?

It occurs to me that between telecom companies pushing for broadband caps that would come with fees for heavy usage and state and local governments looking for the institution of sales taxes for online purchases, there’s a general movement afoot to stifle the one platform that has consistently grown over the last decade and has the potential for even more explosive expansion.

The problem is that they expect that even with these increased consumer costs, activity will remain the same, that people will download the same number of movies from iTunes even when that movie cost them $15 to checkout and then another $5 in broadband usage fees. That people will buy the same number of items from Amazon even though it cost them $20 in taxes.

I don’t think that’s going to happen. I think consumers will adjust their spending levels to account for these increased costs and this grand plan won’t turn out to be quite as grand as their advocates think they will.


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