Senator Markey is on the Right Track to Connect Everyone

Senator Ed Markey (D-MA) introduced a bill with real potential to mitigate the digital divide. Most proposals simply call for more money for existing programs or for new programs without evidence they will help. Real-world experience, however, has demonstrated how little we truly understand about why many low-income people do not subscribe. The Markey bill tackles this underlying issue. It sets the stage to run experiments, gather data, and undertake rigorous analysis to learn why gaps exist, what expectations are realistic, how to make real progress in closing the divide, and how to get the biggest bang from subsidy bucks. Well-meaning policymakers and advocates typically say that the biggest issue keeping low-income people from subscribing is the cost. Surveys consistently list that as one of the top two reasons. If that were so, the solution would be obvious: increase subsidies. And, to be sure, lower prices for low-income households would encourage additional adoption. As economists, far be it from us to argue that demand curves do not typically slope downwards. But evidence from people’s behavior, as opposed to survey responses, has shown that the price of broadband service is not the primary factor that keeps many low-income households from subscribing.