The
Online Guide to Spam Email!Here you will find all
the information you ever needed regarding spam email. We
have composed a 14 section guide below which you can browse page
by page. If you have any questions please
contact our staff. 9 of 14 - How big of a problem
is Spam?
Big. Spam is a big problem first of all because
it is symptomatic of inefficient, parasitical businesses. The
Nobel Prize winning economist
Ronald Coace in what is now known as the
Coace Theorem postulated that an inefficient business (one
that cannot bear the cost of its own activities) is dangerous to
the economy, because to function, it must spread the cost of its
activities across a large number of victims. The Coace Theorem
cuts close to home where Spam is concerned. Any business that
needs to send Spam emails to survive is not a viable business.
The benefit to the spammer is disproportionate to the cost borne
by the spammer, which is next to nil. More importantly, the cost
of Spam removal to the victims is totally disproportionate to
the benefit to the spammer. In a free market economy such a
grossly inefficient process should cease when property rights
are enforced (i.e. the cost is borne by the the party who incurs
them).
Spam is a big problem because property rights
are difficult or impossible to enforce which makes it hard to
get rid of Spam. From the 1800s through the mid 1960s
industrials considered it their right to produce and pollute
with impunity. The economy could not run without their products.
They could not afford to not pollute. It took over two decades
of lobbying to move government and industry to another point of
view. Yet these were reasonable businesses, with physical assets
in the countries of their victims and subject to their legal
systems. Consider the spammers in contrast. Any physical assets
they may have are irrelevant to their activity, which
incidentally, has no borders. They are not subject to the legal
systems of their victims. If they become subject to legislation
attempting to stop Spam they can find a more favorable
environment in another country. The immediate effect of the new
European legislation will be to force the spammers offshore
rather than to stop junk email. There will be less Spam coming
from European countries, but there will not necessarily be any
less Spam.
Spam is a big problem because of the shared
resources it consumes. Internet Service Providers (ISPs) allow
you to surf the Internet, and deliver your email to your email
software usually for a flat monthly fee. They must, in turn,
purchase bandwidth (the technical term for their own connection
to the Internet). The more users they have, the more bandwidth
they need. If they have very large numbers of users they may
need to purchase additional servers to manage email. These costs
are offset by the added revenues of a larger user base. Spam
however, increases their need for bandwidth, and increases the
load on their email servers with no added revenue to compensate.
The added cost must be passed on to the customers, the victims
of spammers trespassing on their private cyberproperty. Some
very large email servers have been shut down due to Spam
overload for extended periods depriving hundreds of thousands of
paying customers of their emails. One leading ISP processes
about 30 million email messages a day,
30% of which are Spam. The problem of Spam has reached
proportions where it threatens the viability of email and of the
Internet itself.
Spam is a big problem because of the private
resources it consumes. Many business people spend up to fifteen
minutes per day reading and deleting their Spam emails. A
company with 100 knowledge workers earning an average of $40,000
per year each spending ten minutes per day deleting Spam would
experience an added burden of $80,000 per year. This cost would
be passed on to Internet users and non-users alike as they
purchase products from this company at their local department
store.
Spam is a big problem because of number of
victims it involves. According to META Group, 5-15% of corporate
email is Spam. This is expected to grow to to 15-30% in the near
term. This means that the average medium-sized company receives
20,000 Spam emails per day. Taking the above example a little
further, if 10 million people each lose 5 minutes a day deleting
Spam, in terms of productivity, this could cost the global
economy over $4 billion annually, not counting wasted bandwidth,
CPU time and network administration time and tools. Based on
these assumptions, the global cost of Spam may well be over $5
billion annually.
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