AT&T claims that if this merger is allowed, it will create approximately 100,000 new jobs in the USA. However, history has repeatedly shown that mergers and their resulting monopolies cost jobs as redundant positions are eliminated and locations are consolidated. They also cost consumers, due to the resulting higher prices from negligible competition. Additionally, this mega-merger would ultimately serve to undermine other smaller and struggling carriers. Remember what happened to your local hardware store when Home Depot came to town? It’s important that the total net impact of jobs be considered, and not just the ones AT&T holds out like a carrot on a stick, if the merger is allowed.
Both the Communications Workers of America and the AFL-CIO are strongly in favor of the merger because they are buying into AT&T’s job creation rhetoric. Despite my strong support of labor unions, I feel equally strongly that this merger should not go forward. The Justice Department should do its job and block the merger and not allow itself to be pressured by the President. The Presidents motivation may be good for organized labor and a nice political move ahead of the upcoming election year, but in this case, this is not good for consumers or the country.
I urge you to read Barry C. Lynn’s eye-opening analysis regarding the economically debilitating effects of monopolies at: http://www.washingtonmonthly.com/features/2010/1003.lynn-longman.html