There’s an inverse relationship between the size and scope of government and the health of our free-market economy. That’s why House Republicans made deregulation a cornerstone of our American Jobs Plan.
Every new rule, mandate, and regulatory edict is one more obstacle that small business owners, entrepreneurs, and job creators have to swallow. That holds especially true for our dynamic and competitive tech industry, which I have worked hard to protect from Big Government intrusion. Unfortunately, the tech industry is not immune to Obama’s regulatory capture, and it looks like America’s iconic innovators might be next on Obama’s hit list.
Most people don’t realize that the Federal Communications Commission’s (FCC) reach extends to one-sixth of our economy. Most people don’t know that in the last 50 years the FCC’s rules – measured in pages – have grown 800 percent. And now the FCC’s sister agency – the Federal Trade Commission (FTC) – has its tentacles deep into the privacy debate, data security, and control over advertising practices.
As in all sectors, excessive regulation kills — regardless who your regulator is.
What’s worse is that the federal government fundamentally misunderstands the tech industry even more than it misunderstands health care, finance, and energy. Technology is characterized by constant change, rapid innovation, creative destruction, and revolutionary products. The technology sector moves 500 times faster than the detached delusions that dominate Big Government agencies. The fact is we don’t know where this industry is going, how technologies will converge, what competition will look like, or what products consumers will want in the future.
If Obama’s regulators were tasked with ensuring playground safety, the first thing they would do is ban monkey-bars, swing-sets, slides, and the ever-dangerous see-saw. A bloody nose in West Tennessee would “force” them to ban running, skipping, and foursquare. In all likelihood, they wouldn’t be content until recess was outlawed entirely. To be fair, these actions would protect our kids from a few sprained ankles, scraped knees, and hurt feelings. But at what price?
At what price are we willing to imprison American businesses in a regulatory straightjacket? At what price are we willing to destroy what works? At what price are we willing crush innovation and ship tech jobs overseas? We must consider the unintended consequences of excessive regulation. Let’s think first before we drive a regulatory tank into a thriving American industry.
So how do we respond?
First, the government’s default position must be “Do No Harm.”We must oppose any so-called government “solutions” thathinder innovation and job creation. Put jobs at the forefront of the regulatory debate, immediately.
According to the Phoenix Center, a simple 5% reduction in the regulatory budget is estimated to result in about $75 billion in expanded private sector GDP each year, with an increase in employment by 1.2 million jobs annually. On average, eliminating the job of a single regulator grows the American economy by $6.2 million and nearly 100 private sector jobs annually.
Second, the Obama Administration must force the independent agencies to comply with Executive Order 13563, which requires a justification for new regulations as well as a retrospective analysis of existing rules. New rules must address specific market failures in a narrowly tailored fashion and they must cost significantly less than the benefits that result.
Third, government needs to respect private industry. A conservative vision to tech issues assumes the imperfection of mankind and a preference for markets – not politics – to drive outcomes. I would suggest that if politicians and regulators were ineffective at engineering society before the digital age, they might not be the best at keeping pace in this new era of US-based technological progress. Government knows so little, reacts so slowly, and works so poorly. The government should stop pretending it has all the answers and knows how best to regulate. Job creators are rapid responders. The tech industry is infinitely more responsive and better equipped to meet consumer needs, wants, demands, interests, and desires than the federal government.
Finally, we need to stream-line government rules and regulations to better reflect the competitive and dynamic characteristics that define the tech industry. That means Congress must take the lead in getting the regulatory agencies away from duplicative regulation. Congress must insist on the repeal of outdated and unnecessary rules. We need to address legacy regulations and examine ways to make the FCC more relevant to today’s competitive realities. Level the playing field for everyone so innovators can operate and compete under a similar set of rules. We need a new way of doing business that flips the government’s regulatory presumption on its head. Government should neither pick winners and losers on the front end nor practice selective and excessive enforcement on the back end.
There’s a long list of businesses and industries that Congress has regulated into insolvency and shipped overseas. Even President Obama, Harry Reid, and Nancy Pelosi would probably agree: shipping America’s high-paying tech jobs to China is a bad idea. Not to beg for bipartisanship, but how about we keep our tech jobs in Brentwood from getting regulated off to Beijing?
Nobody changes their playbook when they’re winning in the fourth quarter. America’s playbook for economic prosperity has always been very straightforward: let the American people and American job creators do what they do best – get government out of the way and allow them to create and innovate. History has taught us the bigger the government, the smaller the private sector. Let’s embrace what has always made America great – our ability to solve problems, revolutionize industries, and meet the needs of consumers. Those should be the principles that govern any new regulation, especially in the dynamic and innovative tech industry. Let’s apply this vision before Obama’s regulatory apocalypse crowds out private innovation and job creation in the tech arena.
Jeff Emanuel
Neil Stevens
They are all dinosaurs - flush 'em
dajeeps (Diary) Wednesday, October 19th at 12:10AM EDT (link)Most are relics from the 1930-60s and we just don’t really need them, if we ever really needed them to begin with. Just flush most of what they do and put all the still relevant stuff in one department – the overlap is a killer for business too.
If we’re not going to flush them then there needs to be a cap on the kinds of things they can do, and the costs involved, with no new regs without congressional approval during periods of high unemployment – period.
…”I would quarrel with both parties and with every individual of each, before I would subjugate my understanding, or prostitute my tongue or pen to either.”
–John Adams
See-saws
DerKrieger (Diary) Wednesday, October 19th at 12:14AM EDT (link)…have been widely banned for about 20 years. Merry-go-rounds too.
Oh, sorry. Rep. Blackburn, how about some legislation to eliminate, downsize, or legislatively restrict the authority of the bureaucracy to only explicitly enumerated (sound familiar?) powers. The bureaucracy is only out of control because of Congressional refusal to cut them off at the knees. Get out your machete and get to work!
“In questions of power, let no more be heard of confidence in man, but bind him down from mischief by the chains of the Constitution.” – Thomas Jefferson
“I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents.” – James Madison
Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience.” — John Locke, 1690
Yeah, why do funding cuts for bureaucrats like this always seem to elude your CR and debt ceiling taffy pulls?
usdebateboard Wednesday, October 19th at 12:39AM EDT (link)Instead, you paint yourself into a corner by having to nip around the edges and hope you can win the PR message.
Leadership.
Rep. Blackburn isn't in charge of those
Neil Stevens (Diary) Wednesday, October 19th at 12:43AM EDT (link)I would like to see her head at least a subcommittee of E&C someday, but she doesn’t have that power yet.
RS contributing editor and “a hardy variety of crabgrass.”
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“I rejoice that America has resisted.” – William Pitt, the Elder
Not just overregulation, Rep. Blackburn.
Melody Warbington (rwm52) (Diary) Wednesday, October 19th at 1:18AM EDT (link)There’s also the matter of the DOJ’s targeting of Gibson Guitars. Who knows what other businesses are on their hit list?
From a fellow Tennessean now living in Alabama, thank you for the information. I look forward to seeing what you and other GOP members in Congress do to create real solutions to the problems you’ve outlined.
The woman saith unto him, I know that Messiah cometh (he that is called Christ): when he is come, he will declare unto us all things. (John 4:25)