Feeds

MS breakup to cost $147bn, $507 a head, say crazies

Full moon again already? Grief...

  • alert
  • submit to reddit

Intelligent flash storage arrays

"Anyone owning shares of Microsoft has become all-too-well aware of what happens when the risk associated with an investment suddenly increases. Until this year, Microsoft was one of the best stocks to own..." All very true of course, but it is hard to feel sorry for punters - apparently including the authors of a report entitled The real economic costs of the Microsoft decision - who have had years of warning that there could be a downside.

The report, published by the Lewisville, Texas-based Institute for Policy Innovation's Center for Technology Freedom, has appointed itself to sort out the challenges posed by technology and makes some claims about the cost of the Microsoft case to the US taxpayer that will probably make even Microsoft chuckle.

The authors, Gary and Aldona Robbins - formerly economists at the US treasury department - warn that the US GDP would be lower by $147.2 billion, and punishing Microsoft would cost every man, woman and child in the US $507. They also make several other startling claims, such as the loss of 44,900 jobs, $59.6 billion less in personal income, and so on. They make several fundamental mistakes in their partisan summary of the legal issues - the remedies were not proposed or recommended, for example - they were ordered by a federal judge.

The authors assumed that $60 billion of Microsoft's $210 billion fall in market capitalisation between January and June resulted from the effects of the antitrust case on the share price, and then plug this value into their "general equilibrium, neoclassical model" to see how the economy might be affected. It must be some model if it can produce forecasts to four significant digits. It is also rather a big leap to assume that a reduction in market capitalisation could have such effects on the economy, since if all such market cap reductions were added together, the result would be penury all round, which is not exactly what is happening in the US.

There's no information as to whether Microsoft is a contributor to the IPI, which says it accepts contributions from individuals, businesses and non-profit organisations - but not from government agencies. ®

Related Story

MS breakup could cost world $310bn - crazed new study

Secure remote control for conventional and virtual desktops

More from The Register

next story
That dreaded syncing feeling: Will Microsoft EVER fix OneDrive?
Microsoft's long history of broken Windows sync
Mozilla, EFF, Cisco back free-as-in-FREE-BEER SSL cert authority
Let’s Encrypt to give HTTPS-everywhere a boost in 2015
SLURP! Flick your TONGUE around our LOLLIPOP – Google
Android 5 is coming – IF you're lucky enough to have the right gadget
Nokia's N1 fondleslab's HIDDEN BRILLIANCE: The 'Z Launcher'
Sugarcoating Android's Lollipop makes tab easier to swallow
Bug fixes! Get your APPLE BUG FIXES! iOS and OS X updates right here!
Yosemite fixes Wi-Fi hiccup, older iOS devices get performance boost
Microsoft: Your Linux Docker containers are now OURS to command
New tool lets admins wrangle Linux apps from Windows
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
Meet Windows 10's new UI for OneDrive – also known as File Explorer
New preview build continues Redmond's retreat to the desktop
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.