Broadly speaking, a “beggar thy neighbor” policy in economics is one in which one group tries to improve its economic position in a way that tends to harm the economic position of another group. This is not unlike the issue of the “tragedy of the commons” where the desires and pursuits of a person or a group leads to the detriment of a second group.
As odious as this approach seems, in Washington DC such an approach often gains traction and becomes enshrined in law. While there are several examples of this thinking in current policy debates two examples leap to mind.
A couple weeks ago FCC Chairman Julius Genachowski announced that he would seek to have the commission block AT&T’s purchase of T-Mobile but also indicated that AT&T’s deal with Qualcomm would move forward – and competitors pounced. They did not come forward to oppose the deal per se, but rather followed a well-worn path enabled by the FCC and sought to take advantage of the fact that a company is at the mercy of the FCC during a transaction review. As the FCC becomes an increasingly activist government tool it seems emboldened in attaching conditions to deals that have nothing to do with the underlying application.
Similarly, in the legislative arena, broadcasters and performance artists decided that the best way to settle a dispute between them was to impose a tech mandate on the mobile industry via legislation, a mandate to force the inclusion of an FM radio chip in all mobile devices. So two industries fight and decide that by burdening an uninvolved third industry that they can still profit.
Perhaps understandable is that people, organizations or companies are going to advocate for their own best interests and it is probably too much to ask that they think of the greater good of the nation. However, when it comes to our elected and appointed officials, to Congress and bureaucrats, we should not just demand but expect more. If the people we elect (and the people they appoint) are too weak to resist giving in to beggar thy neighbor policies as crafted by industry, then perhaps we need to beg our neighbors to help us make changes via the ballot box.