Progressive Policy Insitute Agrees: FCC Overregulation Threatens Private Internet Investment
As we have consistently highlighted, overregulation by Obama’s Federal Communications Commission (FCC) poses a grave threat to private investment in Internet service, which has thrived over two decades during both Democratic (Clinton) and Republican (Bush) presidencies because of a deliberately light regulatory approach.
The Progressive Policy Institute (PPI), in a report released this week, agrees.
In its fourth annual report on investment by American companies entitled “U.S. Investment Heroes of 2015: Why Innovation Drives Investment,” PPI ranks the top 25 non-financial U.S. companies by their amount of domestic capital spending for 2014. Notably, the survey highlights the danger that overregulation poses to investment and innovation, particularly in the telecommunications sector:
In the telecom industry, pro-investment policy should support ‘light touch’ regulation. Here we have the makings of a natural experiment, since the FCC departed from this approach last February by imposing Title II regulations on broadband service. So far in the first half of 2015, the telecom companies on our list are spending at an 11% slower pace than a year earlier.”
This offers yet another ominous warning, one that cannot be dismissed by Obama or Title II apologists as some sort of right-wing hit job. The Clinton Administration commenced the regulatory “light touch” approach that PPI’s report references, which continued through the Bush Administration as the Internet remained one of the few bright spots in an otherwise troubled economy since 2008. The PPI survey shows who the real extremists are, and thankfully offers a bipartisan roadmap for continued Internet investment and innovation: less federal regulation, not more.
CFIF on Twitter
CFIF on YouTube