Balkanizing internet regulation is out of step with the uniformity needs of financial technology

The eye-catcher ….

In two weeks, state utility regulators will convene in San Antonio, Texas for the National Association of Regulatory Utility Commissioners annual meeting to discuss how they can leverage a recent decision by the United States Court of Appeals-DC Circuit that the Federal Communications Commission cannot preempt state regulation of concerns over consumer access to and privacy on the internet via broadband.

Some states such as California have moved ahead with their own net neutrality laws, hoping to enforce consumer protections by prohibiting internet access providers from lowering traffic speed from certain websites or preventing internet service providers from favoring their own content by blocking a consumer’s access to content that the consumer prefers.

The state-by-state approach problem

The problem with a state-by-state approach for a financial technology firm is the uncertainty that data and capital face when they traverse state borders. Will a content delivery firm tasked with storing and transmitting financial data on behalf of a financial technology firm have to enter into different interconnection agreements per state because of the differing consumer privacy laws encountered in each state?  Will differing requirements on paid prioritization result in financial data traffic slowing down depending on which state border it crosses?

There is an irony that on a global basis, the United States is a staunch proponent of freer cross-border data flows, but would run the risk of subjecting those same data flows to a hodge-podge of regulations that create digital toll roads for financial data traffic.

The changing consumer taste in banking

What federal and state policy makers should be focusing on is ensuring the amount of bandwidth necessary for digital transmission of financial data and capital is available.  Our use of digital banking services will not be shrinking anytime soon.  MediaCom Business cited data in a blog post that 92% of millennials make their choices as to where to bank based on the digital services a bank offers.  Legacy banks hoping to compete with digital upstarts are accepting this type of demand an, as found by consulting firm Accenture, are exploring how best to integrate and deploy technology necessary for meeting this demand.

Recommendation: Seamless versus Balkanization

The supply of digital banking and payment systems services combined with increasing demand for these services means more bandwidth is needed in order to optimize the consumer experience.  State and federal policy makers can facilitate this need for increased bandwidth by focusing policy on ensuring the delivery of this infrastructure.  Coming up with 50 different rules on net neutrality is more distraction than help.

What should be spawned in next month’s NARUC meeting is a recommendation for national legislation on consumer privacy.  Consumer privacy concerns should no longer be leveraged to create 50-plus fiefdoms for net neutrality.  Transmission of information, data, and knowledge should be a seamless experience for consumer and firms that use financial technology to transmit value and capital.

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Representative democracy has failed black people in America

The growth of political capitalists …

Representation means nothing if the spoils of society are not being delivered for each vote provided by citizens.  Black voters in particular are interested in optimal physical safety, a need stemming from violence perpetrated on them during the Jim Crow era; optimal access to capital, without which economic security is near impossible or very difficult; and the right to exist as a unique and thriving culture.

What I see being exchanged for each vote delivered by black citizens is the acquisition of a title by one or two elected representatives.  Representative democracy has created political capitalism, where owners of the political factors of political output are not creating political outcomes that address protecting uniqueness of black society, optimal black economic security, or optimal protection from violence.  Government, rather, is a feeding trough for black political representatives, with the number of voters they can persuade to vote for their party serving as the tickets for admission to the political feeding spots.

Government as a club you swing, not a club you join …

Blacks should not look at government as a club to send their smoothest talking salesman to.  Rather, blacks should look at government as a club that can be swung in order to generate capital access, physical security, and economic empowerment.  The outcomes should be a result of pressure politics.  This means that black political leadership should not be found embedded in the political machinery.  Black political leadership should be manipulating the political machinery from the outside.

Blacks in America need only go back to 1954 when the U.S. Supreme Court, in Brown v. Board of Education, vacated the ruling in Plessy v. Ferguson, holding that segregated educational facilities were unconstitutional.  This major landmark civil rights action did not flow from the efforts of black members of Congress.  There were hardly any.  This ruling was the result of blacks taking alternative action in the courts, an approach that was focused and targeted on, in my opinion, the most important branch of government.  It is here where the social and public policy goals of law are interpreted and in some cases, where current social policy is brought to light and used to overturn precedent.

Creative chaos versus status quo ….

When black representatives allow themselves to be embedded in the current electoral structure, their priorities shift to satisfying congressional leadership and mining votes for their national parties.  These activities serve the interests of a majority white congressional leadership versus the black constituents black representatives are supposed to be advocating for.  Take for example U.S. Representative Al Green’s attempt to bring forward articles of impeachment against President Donald J. Trump.  The articles were blocked by the House with Mr. Green, Democrat of Texas, not being able to bring the majority of his own party on board with the proposal.

Mr. Green’s actions were in keeping with the status quo of congressional politics.  But did his actions result in any benefits for black constituents?  Did they lead to an increase in physical or economic security?  Did they lead to increased influence of blacks in the national Democratic Party?

What is likely is that Mr. Green lost political capital and as a political capitalist he must realize that a decreased ability to bring voters with him to the trough means lessened prestige in the Congress.  The other issue he has to face is how his constituents will deal with the knowledge that their congressman has wasted scarce political capital on a go nowhere initiative all because being embedded in the machinery creates the obligation of delivering outcomes that don’t serve them.

Conclusion: Representative democracy is failing blacks …

Representative democracy has failed black people in America.  The representatives from the black community in Washington have been converted into agents for their respective party’s leadership, securing the votes needed so that they can pull up a chair at the trough.  Just like social media has turned subscribers to social networks into resource and product for advertisers, the electoral system has turned black voters into lumps of coal with black congressmen acting as the conveyor belt carrying the coal to the primaries and the national elections.

The question is, what is the alternative approach?