Big tech companies like Amazon, Apple, Facebook, Google, Microsoft and Twitter are getting bashed from both sides of the political aisle these days. Everyone from Democratic Senator Elizabeth Warren to Elon Musk to President Trump is threatening to bust them up because they’re exercising “monopoly” power.
Now, on top of that, firms like Twitter and Google are accused of censoring conservative voices and the Justice Department is investigating whether they should more closely regulate their content and practices.
This is happening at exactly the time we should be celebrating how the gig economy saved our nation from plunging into a Great Depression in the aftermath of coronavirus. Thanks to our multi-trillion dollar tech sector — and not just big tech, but hundreds of new entrepreneurial online services — commerce kept flowing, food was available on the shelves, gas was in the tanks, packages were delivered and paychecks were processed.
It was the nimbleness, knowhow and infrastructure built by our pioneering tech giants that enabled the tens of thousands of small tech firms to come to our rescue in tough times. Our auto and trucking companies, our construction firms, our steel and oil and gas industries, hospitals, media and food processing are all dependent on the kind of inventory and supply chain management made possible by the gig economy. In many ways, the success and array of business-to-business services provided at very low cost (often for free) by companies like Google, Facebook, Amazon and the like is what makes possible the next generation of tech firms that could through free market competition race past these giants. Innovation stops monopolies, not government lawyers.
Here are a few examples of tech innovation that kept the American economy afloat and will help keep us protected from germs and disease in the future: online shopping and delivery which depends on a robust digital logistics system. Digital payment systems. Online conference systems. Information security. Supply chain management. Robotics. Internet platforms. Telemedicines.
A new report from the Connected Commerce Council, which analyzed the impact of digital tools on small businesses in the COVID-19 crisis found almost one of three (31%) business owners say that without digital tools, they would have had to close all or part of their business during the crisis. Nearly 70% say digital tools have been useful during the COVID crisis.
There is now a loud call in both parties for multi-trillion dollar government “infrastructure bills.” Wait a minute. Our most critical infrastructure today is digital economy connectivity through satellites, internet platforms, clouds, fiber optic cables,the sophisticated nationwide electric grid system, 5G technologies. This digital infrastructure is all being built out by the very tech and telecom companies that are now coming under fire for being too successful and making too much money.
All of this, paradoxically, comes at a time when Americans are increasingly and rightfully fearful of the challenge to America’s superpower status that has arisen from China. Beijing wants to dominate every aspect of 21st century technology through state-owned or subsidized companies like Huawei and Tik Tok. They want to knock Apple, Google and Microsoft off their perches as worldwide leaders. How foolish would it be for America’s political class to assist the Chinese in that effort? Equally questionable is why conservatives, who are warning every day of the economic and national security threat posed by China, want to handcuff American companies with antitrust suits and regulation.
Germany, France, Russia and China would love to be home base for these tech giants. They aren’t because no nation can rival the United States in innovation and entrepreneurship – whether that comes from Silicon Valley or main street USA.
Conservatives are angry over big tech’s political advocacy and liberal slant. Liberals see tech companies as too profitable and successful.
But without them, America’s economy would be flat on its back right now. What we need is a bipartisan consensus that the technology and the digital revolution advanced by companies from Apple to Amazon to Google are what make America number one and enhance our freedom and free market prosperity.
Stephen Moore is a senior fellow at FreedomWorks and is a member of President Trump’s Economic Recovery Task Force. His latest book, with Arthur Laffer is: “Trumponomics: Inside the America First Plan to Revive Our Economy.”
