This is a Problem?

The explosive growth in market penetration by the iPhone, along with Blackberry and Palm's competitor products, is one of the bright spots in our current difficult environment.

So naturally, the Obama administration sees a problem with this. The Justice Department has opened an investigation into whether telecom companies are engaging in "anti-competitive" behavior by entering into exclusive relationships for a period of time (AT&T with iPhone, Verizon with the Blackberry Storm, and Sprint Nextel with the Palm Pre).

Smaller cell phone companies, such as U.S. Cellular, are complaining that their business is suffering since their smaller size makes them less attractive partners for such an arrangement.

That's what competition is: businesses try to outdo their competitors. This is a good thing, and if some businesses suffer, so be it.

So we have the spectacle that the Obama administration is shoveling staggering subsidies to the low-growth auto industry, and is investigating for a possible lawsuit the high growth smart phone business.

This is how economic recovery is delayed and growth retarded.