http://www.commondreams.org/news2005/0811-13.htm
WASHINGTON - August 11 - Today's announcement that Michael K. Powell has become a "Senior Advisor" at Providence Equity Partners is evidence once again that the "revolving door" between the FCC and the very industries it oversees should be slammed shut. Powell joins his fellow former chairs Richard Wiley, Mark Fowler, Dennis Patrick, Reed Hundt, and William Kennard, all of whom went from the FCC to work in the media and telecommunications industries. With lucrative industry employment ahead of them, FCC chairs (and most commissioners) have a built-in conflict of interest. They simply can't take the independent positions necessary to fulfill their responsibilities to the public--and to the public interest. One of Powell's new duties, according to Providence, is to "advise the firm on…regulatory issues in the media" industries. Powell's "golden parachute" into the "preeminent private equity firm in the global media, communications, and information industries" comes as no real surprise. Throughout his tenure, Powell was an avid believer in the mystical forces of the commercial marketplace. He spent more of his time quoting economist Joseph Schumpeter (who developed the theory of "creative destruction") than taking an honest, hard look at the public interest consequences of media business trends. During his watch at the FCC, he relied on market forces as his primary touchstone, supporting further consolidation in the broadcast, cable, and telephone industries. Powell ignored growing public concern about media consolidation, including its negative impact on journalistic standards and content diversity.
And the public paid dearly for Powell's term at the FCC. Aside from setting the stage for more media mergers and broadband consolidation, his uncritical faith in the market blinded him to major problems with some of the largest companies under his purview, such as with Adelphia, WorldCom and Enron (recall its fiber optic subsidiary).
In the "free-market" economy of Washington DC and Wall Street, being a political "quick change" artist and then going to work for an industry one once oversaw is considered a mark of success. But the practice does a disservice to the public, including workers, investors, and competitors. Michael Powell helped spark one of the largest public protests against the FCC. Perhaps his example of a former public official cashing in will inspire much needed reforms. Chairs and Commissioners should pledge that they will work in the nonprofit sector for a reasonable period after the serve in office. Otherwise, there will always be the concern that--like Michael K. Powell--his so-called high-minded pro-Big Media philosophy was simply part of his resume for a highly-paid post-chairman's gig.
Jeff Chester is executive director of the Center for Digital Democracy. His new book, Digital Destiny, reviews the FCC career of Michael Powell. The New Press will publish it next year. He can be reached at 202-494-7100
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