Within the space of just three weeks, the once “increasingly hostile environment for investment and job creation here in this country” has given way to a new campaign offensive for the president — working with the private sector to energize our economy. Perhaps the clearest example of the president’s about-face can be seen with “net neutrality” regulation — the idea that the Internet should be frozen in place by regulations, rather than be allowed to evolve and grow. President Obama campaigned on the issue, and Federal Communications Commission Chairman Julius Genachowski quickly positioned the agency toward formally imposing the regulations.
Then the results of the midterms came in. Conservatives pointed out that all 95 Democratic candidates who pledged support to net neutrality lost on Election Day. The pro-net neutrality advocates pushed back, arguing that nobody actually cared about net neutrality enough to vote on it.
Either way, it immediately became apparent that net neutrality regulations were neither a political nor economic winner.
In the administration, the tone changed. The president’s first trip overseas (to India) was all about American jobs.
At the National Association of Regulatory Utility Commissioners convention in Atlanta last week, Genachowski gave a speech, but never mentioned net neutrality — a significant omission.
Instead, he said, “At the FCC, our primary focus is simple: the economy and jobs. We’re focused on seizing the opportunities of communications technologies to catalyze private investment, foster job creation, compete globally, and create broad opportunity in the United States.”
The reason for this shift in FCC focus is not hard to fathom. As the Wall Street Journal reported shortly before the election, surging demand has brought happy days to U.S. companies that supply wiring, chips, and services related to the mobile Internet — a market that represents the Internet’s future.
This has resulted in higher sales. And that has spurred jobs. Moreover, the tools these companies provide have their own broader jobs multiplier effect.
With high unemployment remaining a stubborn reality, the administration seems to have warmed to the fact that it’s worth taking a few nasty press releases from some “consumer watchdogs” to protect one of the economy’s few bright lights.
Consequently, working to increase consumer demand (as some recent government reports suggest), instead of compelling providers to serve, has taken a greater priority.
Former Democratic FCC Chairman Reed Hundt says the FCC’s main mission going forward should be “jobs, jobs, jobs.” The president’s staunchest allies — the unions — agree.
Increasingly, those jobs are connected to a growing and vibrant Internet — a medium that for the past five years has remained unregulated. This has brought about a flood of new investment and innovation, “saving or creating” millions of new employment opportunities for Americans.
It’s a model that works — keeping government rules to a minimum and, in doing so, boosting our economy. America’s job creators have waited long enough to leave their bunkers.
If the Obama administration wants to distance itself from its midterm shellacking, it won’t ever return to job-killing regulations like net neutrality.
