by Ray Keating
The Keating Files – October 7, 2020
With a presidential election less than a month away, the political silly season has shifted into high gear. And that’s saying something because we now live in a 24/7, 365-days-a-year political silly season.
It’s not just the calendar that signals the current stage of such silliness, but what politicians are saying and doing as well. For example, these days it’s standard fare to rail against technology firms and immigrants, while, of course, ignoring actual economics. After all, economics and reason can be an annoying distraction when trying to turn out one’s political base.
So, we have a hot-off-the-presses report from the Democratic staff of the House Antitrust Subcommittee that accuses tech companies Amazon, Facebook, Alphabet (i.e., Google), and Apple of wielding monopoly power, and stomping out competition and innovation. The Democrats ominously declared, “Our economy and democracy are at stake.” Golly.
The Democrats tossed out some ideas for government action, including forcing companies to separate certain lines of business and more forceful antitrust powers.
Not to be out done, Republicans on the subcommittee chimed in with their own report, which asserted that “Big Tech is out to get conservatives.” Golly … again.
In reality, this political stunt fails to take note of the vast innovation that is ongoing in and around the internet; the ever-multiplying choices and reduced costs for consumers; the expanded opportunities for entrepreneurs and small businesses; and the fact that no tech company, no matter how big it happens to be today, can afford to sit back like a fat monopoly, and raise costs or reduce quality for consumers. Were that to happen, that company would be crushed by new or existing competitors, and consumers would quickly move on.
Political grandstanding and antitrust regulation are by nature backward looking. Trying to guide and regulate a sector of our economy via antitrust is the equivalent of putting a government bureaucrat in an industry driver’s seat – which should make us all very uneasy – and then have that political appointee drive the car while looking in the rearview mirror. This has always been the case, but given the fast-changing, dynamic nature of our tech economy, it’s particularly ridiculous and dangerous.
The question really is quite simple. Who do you want calling the shots in the end: consumers or government? If you favor consumers, then let tech companies – big, small, emerging and still-yet-to-be-born – compete to serve consumers. If you favor government, then forget consumers, let politics reign, and pull more technology under the control of government. After all, how could that possibly go wrong?
Oh yeah, and by the way, regarding accusations from Republicans – in particular, populists – who say that tech companies are out to get them, well, while Silicon Valley clearly leans strongly Left in terms of its prevailing politics, the tech tools they produce seem to be serving Republicans and populists quite well. Hmmm, go figure.
For good measure, Democratic presidential candidate and former Vice President Joe Biden also favors increased antitrust regulation. For example, a Biden campaign spokesman toldThe Wall Street Journal recently: “Many technology giants and their executives have not only abused their power, but misled the American people, damaged our democracy, and evaded any form of responsibility. That ends with a President Biden.” Golly, one more time.
But attacks on so-called Big Tech can’t stop there during the political silly season. How about a two-for-one policy change that not only slaps U.S. tech companies, but immigrants as well? President Trump and his administration certainly can’t pass up that opportunity. After all, that anti-immigration base needs shoring up.
As a result, the Departments of Homeland Security and Labor have announced a tightening of requirements for H1-B visas, which cover high-skilled foreign workers. Apparently, it’s time to make it tougher to bring in such immigrants and to raise the costs of doing so.
The new regulations, according to officials, will increase the level of rejected H1-B visa applications, and mandate that H1-B visa workers receive higher pay. Wait, is that like an increased minimum wage for immigrants? The political folks might want to take a closer look at that – could be a bad look with the base.
Joe Biden also favors jacking up government mandated wages for H1-B visa workers.
This entire effort, of course, is built upon the fiction that immigrants coming to the U.S. take jobs from native-born Americans, drive down wages, and contribute nothing. But the truth is that these and other immigrants fill jobs that U.S. businesses cannot fill otherwise; do complementary work that enhances the productivity and incomes of native-born workers; generate further growth as producers and consumers; and have a higher propensity for entrepreneurship than do the native born. Immigration, as most economists will tell you, is a net-plus for the economy, and studies overwhelmingly show no negative effects on wages of the native born due to immigration.
The U.S. economy is not a zero-sum game, whereby one person’s gain is another’s loss. Instead, when not held back by pandemics, government shutdowns, and/or costly public policies like high taxes and onerous regulations, entrepreneurs, investors, businesses and workers – including tech companies and immigrants – drive wealth creation, economic growth, productivity, income growth, and job creation forward.
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“Polls Before the Dreaded Presidential Debates”
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“Character-Rich Sci-Fi: Take the Netflix Journey with ‘Away’”
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“Should We Take Our Ball and Go Home When Pro Athletes Disagree with Us?”
“‘Greyhound’ Ranks as Strong Storytelling – Even on a Smaller Screen”
“2020 Politics as the Conventions Get Rolling … Kind of?”
“Biden Picks Harris: Will It Matter on Election Night?”
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Ray Keating is a columnist, novelist, economist, podcaster and entrepreneur. You can order his new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York from Amazon or signed books at RayKeatingOnline.com. His other recent nonfiction book is Free Trade Rocks! 10 Points on International Trade Everyone Should Know. The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
Keating’s latest novel is The Traitor: A Pastor Stephen Grant Novel, which is the 12thbook in the series. The best way to fully enjoy Ray Keating’s Pastor Stephen Grant thrillers and mysteries is to join the Pastor Stephen Grant Fellowship! For the BEST VALUE, consider the Book of the Month Club. Check it all out at https://www.patreon.com/pastorstephengrantfellowship
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Check out Ray Keating’s Disney news and entertainment site at www.DisneyBizJournal.com.
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