Showing posts with label dean baker. Show all posts
Showing posts with label dean baker. Show all posts

14 January 2009

Economising with Open Source

Here's an interesting sign of the times. High-profile economist Dean Baker calls for "Funding for the Development of Open Software" as part of a stimulus package:


the government can spend $2 billion a year to develop open source software. This money can be used to further develop and simplify open source operating systems such as Linux, as well other forms of free software. The payoffs from this spending would be enormous. Imagine that every computer buyer in the world would be able to get a computer for which the operating system was free, as was almost all the software that they would ever use.

This would surely save consumers an average of at least $200 per computer. With sales at close to 20 million a year, the savings in the United States alone could easily exceed the cost of supporting software development. Adding in the benefits (and presumably some contributions) from the rest of the world, we will be way ahead by going the route of publicly funded open software open software. The cost would be $2 billion a year.

The message is spreading.... (Via Slashdot.)

07 January 2009

How the Wealthy Use the Government to Stay Rich and Get Richer

Not my words, but the subtitle of a book that apparently has wise words on the harm inflicted on society by intellectual monopolies:

It is heartening to find more and more critics of our intellectual property regime, partly as a result of growing knowledge but more importantly, the growing critical reaction to the extreme excesses of the application of the law. A new voice for me is that of Dean Baker, co-director of the Center for Economic and Policy Research in Washington, DC. whose book, THE CONSERVATIVE NANNY STATE; How the Wealthy Use the Government to Stay Rich and Get Richer, is available for download on line link here under a Creative Commons license. The book is about much more than IP, as the subtitle indicates, but this review focuses on the IP issues Baker covers. He calls the chapter, "Bill Gates Welfare Mom: How Government Patent and Copyright Monopolies Enrich the Rich and Distort the Economy".

He begins by examining the richest man in the world, Bill Gates, and Microsoft, noting that it was not Gates hard work or brilliance, or the superiority of his software, but his government provided monopoly based on IP law that made him today's Croesus.

Sounds my kind of book; moreover, it's freely available as a download (kudos). Our numbers are swelling every day....

01 January 2008

An Economist Questions Intellectual Monopolies

Madisonian.net pointed me to a writer I'd not come across before, Dean Baker. He has a nice line in puncturing the economic nonsense published by the press. Like this, for example:

The NYT seems very eager to side with the recording industry in its protectionist question. How else can one explain the constant use of the term "piracy" to describe unauthorized duplication of recorded music. The NYT, which harshly denounces protectionist measures designed to benefit manufacturing workers, again committed this sin today in a column on the University of Oregon's refusal to comply with a subpoena seeking records on its students.

From the article, it appears as though the students had shared music files, which they may have purchased, among themselves. It is not evident that this is violating any law (last I checked, I can lend a CD to a friend), even if the recording industry doesn't like it. Rather than asserting that an act of "piracy" has been committed, the paper could simply substitute the more neutral term "copying." In most cases, it will have room for the additional letter.

That's good stuff, but it pales in comparison to the strong meat found in this essay entitled "The Reform of Intellectual Property." Obviously I'm not wild about the "eye-pee" stuff, but Baker is under no illusions:

It is remarkable that economists, who usually view themselves as advocates of free market transactions, unquestioningly embrace various forms of intellectual property rights, especially copyrights and patents. Copyrights and patents are government granted monopolies. They have their origins in the feudal guild system, not the free market economics of Smith and Ricardo. In fact, at the end of the 19th century, Switzerland and the Netherlands actually eliminated patent and copyright protection, with the intent of promoting free market competition. In spite of their feudal legacy, and their obvious status as forms of protectionism, few economists ever question the merits of the patent and copyright systems.

The paper then procedes to that, concluding:

Clearly there are very powerful interests that stand to lose from reform of intellectual property rules, specifically the pharmaceutical industry, the medical equipment industry, the software industry, and the media and entertainment industries. These sectors include many of the biggest and most powerful corporations in the world. But the strength of the resistance to reform does not affect the intellectual argument for reform. It would be difficult to identify more harmful economic policies than the current system of patent and copyright rules. They are few cases where the application of standard neo-classical economics could have such beneficial effects.

Glad to see that the software industry got a hat-tip there.