It’s been a pretty rough year for the tech sector. But you wouldn’t know that by listening to the likes of Senators Amy Klobuchar or Josh Hawley.
Anti-capitalist, populist politicians from both major parties have set their targets on this industry via antitrust bills meant to “break up” major tech companies and devastate their market position. Yet, ironically, the market may beat them to it. Facebook’s value alone has plummeted by hundreds of billions of dollars in 2022 and its CEO recently said layoffs were looming. And last week, the six largest tech companies in the US lost over $500 billion when tech stocks tumbled following a very high August inflation report.
NEW: Meta CEO Mark Zuckerberg just told employees the company is implementing a hiring freeze, and warned there will likely be more restructuring and downsizing to follow
— Kurt Wagner (@KurtWagner8) September 29, 2022
That should be enough to make these politicians rethink their antitrust push. Devastating one of the country’s most popular and profitable industries during a time of sky-high inflation and economic uncertainty would be short-sighted, to say the least.
A new report from the Committee to Unleash Economic Prosperity backs this up. The report is authored by revered economist Art Laffer along with Stephen Moore, and it finds that Amy Klobuchar’s bill, The American Innovation and Choice Online Act, would cost consumers tens of billions of dollars in higher prices while also lowering productivity.
The study notes, “It should be well accepted that if a company is not acting in a way that is harming consumers, then its dominant position should not be regulated or penalized by the government.”
It also says, “As a result of this law, fewer American companies will be started and fewer will reach a stage of profitability because of highly questionable antitrust concerns.
“China and other foreign rivals will benefit the most while American consumers will be the biggest losers,” the study concludes.
Just when you think the politicians can’t come up with any worse ideas than they already have in the past, they go and truly outdo themselves.
On top of these very big problems with the bill, the study also points to the obvious secondary problem: this is a huge expansion of big government and the regulatory state. The bill would practically double the problematic Federal Trade Commission’s budget, the number of regulators within it, and the legal authority it has to harass American businesses.
For those who don’t know, the FTC is currently run by a very far-left activist, Lina Khan, who has made her distaste for the free market and capitalism widely known. So, can someone tell us why a fair number of Republicans are signed onto this bill?
The tech sector has already been damaged enough by really bad economic policies, as have many other industries. We are strangling our economy with red tape, corporate welfare, and cronyism, and it’s us—the consumers—who ultimately have to pick up the tab.
The red flags have been waived on this red tape bill for months now. Study after study has warned of the harm it will cause our economy and the American people. It is simply unacceptable that politicians are still trying to advance it at this phase.
Don’t fall for the talking points. This Amy Klobuchar push has nothing to do with increasing competition—and everything to do with increasing government power.