One of America's leading authorities on technology and telecom policy, Motley is a writer, television and radio commentator, political and policy strategist, lecturer, debater, activist, and policy advisor to The Heartland Institute.
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Without investment, everything economic collapses. Stasis is death. We must constantly create and innovate to move forward our massive $14-trillion-per-year economy. That takes lots and lots and LOTS of speculative capital.
Without certain certainties, investment collapses. If investors don’t have any reasonable idea what’s going to happen in a market – they won’t invest in that market.
That is not to say guarantees. Investing is – in the best of circumstances – extraordinarily risky. Investors know this. They are risk takers by nature – thank God. Without them, their copious coin – and their intestinal fortitude – everything economic collapses.
What we absolutely do not need is government artificially creating all manner of additional uncertainties. Sadly, that is inherently what government does.
Regulation-compliance-costs waste investment capital. Unilateral regulation – when the Executive Branch bypasses the Legislative Branch and its process and rewrites and superimposes laws all by its onesies – creates tremendous uncertainty. And with it tremendous loss of investment.
Because if the economic landscape can be fundamentally altered on a whim – by the wave of a hand and the stroke of a pen – those looking to invest will instead head for the hills.
The examples are legion – and often legendary.
Federal regulation and intervention cost American consumers and businesses an estimated $1.88 trillion in 2014 in lost economic productivity and higher prices.
And on, and on, and…
Sometimes this is the expressed intent of those in governmental power. Remember these promises from now-President Barack Obama?
That’s certainly investment-friendly.
Often the intent is just as malicious – but obfuscated. Remember this promise from now-President Obama?
After our premiums necessarily skyrocketed, we learned from ObamaCare architect and accidental video star Jonathan Gruber that they all along knew it would increase premiums by 19-30 percent. In many instances, it’s been much higher than even that. And there are more, even larger increases on the way.
There are many, many, MANY ways this money could be better spent.
Often uncertainty and its resulting loss of investment is – if we’re giving the benefit of the doubt – an accidental government by-product. They mean well, but their government actions end up squelching speculative coin.
For instance – behold the woefully misnamed Innovation Act. Which harms what it claims to want to help. Yet another government “Oops.”
For investors in technology start-ups, things are about to get much more complex and dangerous….
(T)his bill actually will kill investment and innovation….
The American patent, so indispensable to technology start-ups, is about to be rendered useless when faced with an infringer of disproportionate size….
President Obama, known to be tight with Google, has said he will sign it. Google and other mega-corporations will be pleased.
Big Government and Big Business love it. The Little Guys – not so much.
(T)he Innovation Act threatens American inventors, particularly individual inventors and those working at small businesses and startups….
What do all of these inventors need to create and innovate? Investment. Which the government is poised to fundamentally undermine.
When the ability for investors to get a return on said investment is legislated away – they’ll head for the hills. And take their copious coin – and our hopes for future creation, innovation and economic expansion – with them.
Of that we can all be most certain.