It’s National Small Business Week, and Google wants small business owners to get active on an Internet issue. Unfortunately, the company with enormous Internet presence wants small businesses to weigh in on the wrong side of the issue.
Google is getting active on how the federal government should spend taxpayer dollars on broadband. Part of the so-called economic stimulus package was $7.2 billion in broadband-related grants.
As banks and car companies quickly discovered, when government starts doling out taxpayer dollars to subsidize or bailout companies, government controls inevitably come as well.
However, Google actually is in favor of government strings being attached, and wants small businesses to weigh in for those government controls.
Google is urging its “Small Business Network” to sign a letter to Congress in support of “open Internet standards to ensure the growth of small businesses in the United States.”
Sounds nice. Well, that is, until one understands that an “open” Internet, in this case, means a regulated Internet.
Google declares: “Without safeguards that preserve an open Internet, the Internet could be shaped in ways that only serve the interests of broadband carriers, rather than U.S. consumers and Web entrepreneurs.” But why would broadband carriers work against their own customers? Does not seem like a very sound business strategy – especially as innovation and technological advancements are expanding competition and consumers options.
In reality, the question comes down to a question of trust. Whom do you trust to innovate, invest and serve consumers best – private businesses seeking market share and profits, or politicians and their appointees listening to special interests?
Broadband providers have every incentive to serve their two markets – both Web entrepreneurs and Internet consumers – well. If broadband providers actually raised costs or erected obstacles to either side of this market, they would lose business, lose credibility with the public, and no doubt feel the wrath of government regulators.
Small business owners have firsthand knowledge of the costs imposed by government, and how regulation discourages investment and risk taking. It’s no different in the Internet/broadband industry. If government decides to dictate that certain business models and options are off limits, then there will be less innovation, investment, and competition.
What’s the best broadband policy? Forget about the handouts and regulations, and let the market work. That is, keep the Internet open for robust investment, free from government meddling.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
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