Broadband Reclassified to Title II

Putting on my Economist’s hat once again, all three of those would be class leaders by global standards, some would even say the envy of all others. Obviously it depends on your definition of “good products/services” and “reasonable price”, but:

Telecommunications: Europe didn’t dismantle its telco monopolies like the disastrous AT&T breakup in the US. Because of that, it got to define the global cellular phone standard GSM, and until very recently got to define the standard mobile phone (Nokia). Europe, especially Britain and the Netherlands, are still the main hub for the global internet just as New York is for the US (partially due to being the closest to Europe). Look at any map of the global internet and Europe is lit up like a Christmas tree.

At a pure consumer level, prices and conduct are tightly regulated and fair, with regular reduction of the caps placed on fees to force down prices for those who don’t regularly shop around for “deals”. Price or service gouging generally doesn’t happen. Net neutrality isn’t even discussed much here because it’s not even an issue. If you look at the OECD fixed not wireless broadband ranking per 100 citizens, the US and Europe aren’t in the same ballpark, Europe is way ahead (I don’t count wireless broadband as real broadband).

Healthcare: Most European countries provide nationalised healthcare which is very tightly price controlled, including to the price of free of cost. Outcomes for the poorest 20% of citizens and the 50% average are the world leading bar none. Last year myself and Megan had a baby, and that birth was entirely paid for by the Irish state. Chances of something going wrong were on average one sixth of the chance in the United States, which made us laugh when Megan’s friends genuinely were worried for her safety over here. China and Latin America are copying the European health approach and completely ignoring the US one for a reason: outcomes. We also achieve those much superior outcomes at less than half the cost per citizen of the US.

Banking services: When I lived in Canada in 2012-2013 I was quite stunned at how primitive the North American banking system is for such advanced countries. Why can’t I use my ATM card to buy stuff in China and have it shipped to me because ATM cards aren’t functionally equivalent to credit cards? Why can’t I use the point of sale in retailers to do an ATM cash withdrawal when I buy stuff? And why aren’t there chip and pins and wireless payment and ID photos on the bank card, they were just coming in as a “new thing” end of 2013 when we left? Why can’t I from my online bank account wire money to anywhere in the world in a choice of today, two day, and five day options? Why can’t I have a credit card without depositing a guarantee of its credit limit? Why can’t I get car insurance for one week in a choice of on-the-car on on-the-driver insurance? Moreover, you guys still use cheques, I actually had to ask Google how to write one of those in Canada. I remember them here when I was a child.

In most European countries, there are no bank account maintenance fees, no charges for bank transactions, no charges for using ATMs. In Canada I paid $3 every time I stepped near an ATM. In the US, sometimes $4.50.

Part of European supremacy here is because London remains the centre of the global banking industry, so weird custom insurance is easy to find and buy (e.g. want to insure against aliens landing next year? No problem), and credit card risk is much more easily securitised. You also get more innovative banking products - for example, my UK credit card charges me 6.7% APR, and it doesn’t try to trick me, gouge me, have silly entrapment clauses or other ways of costing unexpected fees or super high trick APRs. Moreover, I’m Irish and live in Ireland with a different currency, yet I can open a UK Sterling credit card and bank account. Go ahead and try that in the US if you’re Canadian, or vice versa!

Prices here in Europe are more expensive than the US because of the hefty 20-25% sales tax. But that’s deliberately there to stop you consuming, and encourage you to invest instead (a 45% tax on bank interest encourages the bond or stock market, any post office here lets you buy government bonds very cheaply and easily and tax free). Sales taxes don’t tend to apply to most services, and so are very price competitive to the US, indeed often free as I mentioned above. This is despite banks etc. not being allowed to sell your personal data for profit like in the US.

Europe has its big problems, mainly that we divert too much resources away from the young to the old, and people prefer a predictable shitty future to a less predictable potentially better one. There is a definite problem with encouraging growth here. But on high quality products and services we are tough to beat, albeit we cost more. I’d challenge you to try a €10 three course meal in Spain or France and not be stunned at how vastly better quality cheap food is to Anglo Saxon countries. Over there, what they consider minimum food quality acceptable is several orders of magnitude above the US, though I’ll grant you that the portion sizes in the US are great bang for the buck. We used to eat for three days off a typical main course in the US, and the doggy bag is real handy (you would get a lot of hate even asking for one here, though portions are small).

Niall

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