Journal of Commerce, March 10, 2000
Under President Clinton’s recently announced $2 billion technology plan, the government will siphon dollars from the pockets of taxpayers to offer high-tech companies tax incentives to help bridge the so-called digital divide.
But market forces are already pulling people onto the Internet with speed and efficiency that no government program could ever match.
A government study released last summer had the media, politicians and public spinning over the ever-widening gulf separating the technology haves from the have-nots.
The foreboding image of a digital divide in the categories of race, gender, age, location and geography was splashed all over the front pages of newspapers and, not surprisingly, found its way into the speeches of politicians.
But with all of the excitement over this new issue, hardly anyone noticed that the government report was based on information from surveys taken in 1998 and earlier.
By the time the Commerce Department released the report, more current market research was available, revealing the divide had already narrowed considerably.
And we all know that Internet time is something like dog years, with one year equivalent to a decade. The government’s report warned of a “racial ravine,” where whites dominate the new medium.
But data from a more current 1999 Forrester Research survey shows both Asians and Hispanics beat whites as the most likely to be wired to the Internet.
And as much as some politicians and special-interest groups would like us to believe, the digital divide may not really be about race, gender or geography. Maybe it has more to do with government desire to establish and control a spoils system.
With numerous private-sector access initiatives already in place, there’s no need for taxpayers to subsidize wealthy companies’ community works and donations.
High-tech firms have their own reasons for joining the digital crusade. Just as phone companies give away free cell phones to get consumers hooked on their service, so will tech firms provide free computers, Internet access and educational programs.
Technology companies like America Online, Microsoft and AT&T already have invested heavily in getting Americans of all stripes online. AOL is partnering with Wal-Mart to bring low-cost Internet access to Wal-Mart’s 100 million weekly customers.
Microsoft has been running its “Giving Programs” since 1983, bringing the benefits of information technology to people and communities that do not have access. And in July 1999, AT&T donated $1.42 million to further technology education in underserved communities.
This all goes to show the private sector has it covered. What is required from the government now is not money, but patience. After all, Internet access has spread to 50 million people in only four years.
That’s about nine times faster than radio, four times faster than the personal computer and three times faster than television. At this rate, it won’t be long until all of those who desire Internet access will have it.
If the government wants to spread Internet access, it should leave the Internet unregulated and ease up on the taxes individuals pay. This will give all Americans the means to make their own choices about technology.
For some, the extra cash could provide the means for them to log on for the first time.
Helen Chaney is a public policy fellow in the Center for Freedom and Technology at the California-based Pacific Research Institute for Public Policy. She can be reached via email at hchaney@pacificresearch.org.