Four years ago this month, Joe Biden’s primary win in South Carolina resuscitated a struggling campaign that pundits had all but left for dead. Biden crushed his primary rivals by running as the electable moderate and “return to normalcy” unifier.
Then came the bait and switch. Once in the White House, Biden handed his economic policies to the same Elizabeth Warren acolytes he had defeated at the ballot box.
For example, the Federal Communications Commission’s latest plan to micromanage your cable or satellite TV subscription. Eager to play their part in Biden’s “war on junk fees,” Democrats at the FCC are rushing forward a proposal to outlaw the early termination fees that help hold down the costs of most pay-TV contracts.
However well that idea may poll, it suffers from the same two fatal flaws as so many cornerstones of Bidenomics: It’s demonstrably unlawful. And it will dramatically drive up consumers’ bills.
Early termination fees actually serve a pro-consumer economic purpose: They allow pay-TV companies to offer customers the option of a longer-term contract at a meaningfully lower monthly price than a month-to-month agreement.
The longer duration and lower customer churn of fixed-term contracts lower providers’ marketing and advertising costs, directly translating to lower consumer bills. It’s Economics 101.
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