The System · Part 1
Chapter 5: Government Failure #1: Regulating for a World That No Longer Existed
Government kept regulating along paths shaped by outdated assumptions. The Telecom Act of 1996 accelerated ownership consolidation without addressing incentive design. Digital platforms introduced algorithmic amplification at unprecedented scale without corresponding oversight.
Key insights
- The Telecom Act of 1996 was designed to promote competition but accelerated consolidation
- Clear Channel grew from 40 to over 1,200 stations post-act
- Digital platforms scaled to billions before regulatory frameworks adapted
- COVID-19 misinformation demonstrated the gap between influence and accountability
- Fear of overreach delayed meaningful regulatory response
Regulation continued along paths shaped by earlier assumptions, even as those assumptions ceased to match reality.
Sections in this chapter
- Regulation built on scarcity
- Telecom Act of 1996
- Radio consolidation
- Digital intermediaries
- Platform scale
- Why adaptation failed