Government destroys jobs by delaying Digital TV transition
Congress completed its attack on the U.S. economy today by voting (in the House) to delay the shutdown of analog TV broadcasting. If you were hoping to get a job building, installing, or maintaining new services that used the freed-up spectrum, hope no longer. The spectrum, and therefore any new jobs created by its new licensees, won’t be opened up until mid-June. An auction for a tiny portion of the TV spectrum raised $20 billion (source). Let’s assume that auctioning the entire spectrum would generate at least $100 billion in revenue for the Federal Government. Let’s further assume that the spectrum license is one third of the total capital investment required for a new wireless service. That means that, had analog TV been shut down, companies would have invested a further $200 billion in planning, design, equipment, software, marketing, customer service facilities, etc. That’s real capital investment that should be creating long-term jobs. There probably isn’t that much actual investment in the latest $800+ billion “stimulus” bill going through Congress. We would need to expand the current bill to $1.6 trillion in order to undo the damage done by the delay in the shutdown of analog TV.
Let’s also look at the global warming and air pollution angle. A VHF station transmitter will typically deliver more than 300 KW of output power. Assuming some level of losses, we’re talking about 0.5 megawatt per TV station to run the analog transmitter. Multipled by the more than 1000 television stations nationwide, even accounting for the fact that many are lower power UHF stations, we would need a good-sized coal-fired power plant running 24 hours per day to supply this load. Given that we’re running these huge transmitters for no particular reason, we’re going to need even more elaborate schemes to combat CO2 pollution.
Finally let’s look at the electronics retailers, some of which are going through Chapter 7 liquidation proceedings right now, notably Circuit City. Under the original plan they would have had their best day ever on February 17 as the analog TVs stopped receiving signals through their rabbit ears. They would have sold converter boxes, new digital TVs, cable subscriptions, satellite subscriptions. What do they get now? The same temporary boost in sales, but three or four months after most have gone out of business.
Can anyone think of a more effective way to shrink the U.S. economy?
[To those who worry about the effects of a TV shutdown on the poor: more than 97 percent of U.S. households classified as being in poverty own a color television and this number was about the same even when TVs were much more expensive. Americans at all income levels seem to be able to obtain necessary television gear.]
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