AT&T and T-Mobile: Sign of Growing Confidence in the Economy

Marketplace Morning Report’s Chris Farrell is excited about AT&T’s proposed acquisition of T-Mobile for what it means for the U.S. economy. From “The positive side of the AT&T-T-Mobile merger“:

CEOs for the past couple of years have been scared. They’ve been in a survival mode. Well, they’re now leaving the bunker. They’re willing to take a risk; they’re going to buy a business, they’re going to expand. And so, the famous phrase of John Maynard Keynes: Animal spirits of capitalism, at least in the executive suite, are being unleashed.

Extra points to Farrell for invoking Schumpeter’s “creative destruction”: “I think we’re seeing more growth, I think we’re seeing more opportunity. So overall, job creation. But if you’re in the wrong place at the wrong time, job losses.”

The Hill also blogs today on the predictable opposition for reactionary “consumer groups,” with a good response from AT&T. From “Groups say AT&T merger is job killer“:

“We have a metric that every billion dollars results in 7,000 new jobs, so I think that’s bringing new jobs to the economy, bringing new jobs to the country, extending a critical infrastructure to the country, and I think it’s good for the overall economy,” AT&T executive Ralph de la Vega said in a CNBC interview on Tuesday.

“We have said we are going to invest an additional $8 billion — $8 billion — in infrastructure to facilitate us making this merger work and extending LTE to 95 percent of the population,” he said.

Block efficiency, innovation and investment, and jobs will wither away.

Leave a Reply