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New Report Suggests Innovation In the Communications Sector Will Spur Growth and Lead American Job Recovery
Economist Michael Mandel Unveils a New Analysis Citing Countercyclical Regulatory Policy As a Pathway for Job Creation
WASHINGTON, D.C. - July 21, 2010 - The Progressive Policy Institute (PPI) released a new report by economist Michael Mandel titled "The Coming Communications Boom? Jobs, Innovation, and Countercyclical Regulatory Policy." Unveiled at a July 20 event on Capitol Hill featuring Mandel and Rep. Ron Kind (D-Wis.), co-chair of the New Democrat Coalition Task force on Innovation and Competitiveness, the paper proposes a countercyclical regulatory policy for high-tech and innovation-centric industries to promote job creation and generate a new wave of innovation-led growth.
"This policy memo raises an intriguing question: should regulatory policy be any less sensitive to business cycles than fiscal and monetary policy?" said Will Marshall, president of PPI.
The report finds that the "broad" communications sector - Internet companies, wireless telecom carriers and computer systems design - is creating jobs even as the rest of the economy experiences double-digit unemployment. Mandel cites these sectors as "job leaders" that could spearhead a broader expansion of employment as the U.S. economy fully recovers from a fierce financial meltdown and recession.
Mandel's research shows that the communications sector is poised to lead job creation in the short term, and is where most of the "energy" and innovation are happening that are needed to avoid a jobless recovery. He cautions that now is not the time for regulators to step in to this sector and derail what is expected to be a strong and steady trajectory to job creation. In his paper, Mandel addresses current proposed regulation over the communications sector, stating that "in the early stages of an innovation-driven boom, permissive regulatory policy is important to let new products and services take root."
The paper proposes the government hold off on imposing regulations over growth sectors for a two-year period. This would "allow the incipient communications boom to get started. After that period, the [FCC] should systematically and proactively track down areas of excess and exploitive behavior, and target them for selective intense regulation."
To access the full memo, visit: http://bit.ly/98crsS
The Progressive Policy Institute is an independent research institution founded in 1989 that seeks to define and promote a new progressive politics in the 21st century. Through research, policy analysis and dialogue, PPI challenges the status quo and advocates for radical policy solutions.
For additional information, web users may access the Progressive Policy Institute at www.progressivefix.com, or contact PPI's press office at 202.525.3931.