{"id":18593,"date":"2024-09-10T05:10:31","date_gmt":"2024-09-10T09:10:31","guid":{"rendered":"https:\/\/mhgoldberg.com\/blog\/?p=18593"},"modified":"2024-09-10T06:03:10","modified_gmt":"2024-09-10T10:03:10","slug":"staying-out-of-the-way","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=18593","title":{"rendered":"Staying out of the way"},"content":{"rendered":"

I have frequently written about government keeping out of the way. The phrase “out of the way”<\/a> appears in about 25 of my posts.<\/p>\n

Twice, I used the same title, “Getting out of the way” [2012<\/a>, 2016<\/a>]. Earlier this year, in “Let the marketplace work”<\/a>, I describe government policies and regulations inhibiting capital investment by the telecom sector.<\/p>\n

So, it was with interest that I read a recent article on “The Hub”<\/a>, “Want to be a more productive country, Canada? Get the government roadblocks out of the way<\/a>” by Jerome Gessaroli. He says “policies relying on government intervention to replace the free market seldom produce improved growth and productivity.” His article includes 4 policy recommendations relating to government maintaining a smaller economic footprint. <\/p>\n

Mario Draghi’s newly released<\/a> report for the European Union, “The future of European competitiveness”<\/em> [Part A (A competitiveness strategy for Europe) pdf<\/a>, 3.4MB | Part B (In-depth analysis and recommendations) pdf<\/a>, 11.5MB], cites “inconsistent and restrictive regulations” among the hindrances for innovative company growth. The report calls for reducing the regulatory burden imposed on European companies. “More than half of SMEs in Europe flag regulatory obstacles and the administrative burden as their greatest challenge.” According to the report, “Regulation is seen by more than 60% of EU companies as an obstacle to investment”.<\/p>\n

In other words, I’m not alone in wanting government to stay out of the way.<\/p>\n

A few years ago, I quoted<\/a> Ronald Reagan’s 1986 remarks to the National White House Conference on Small Business. “Government\u2019s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”<\/p>\n

That approach gives the appearance of government doing something, but rarely achieves a positive long-term outcome. It seems to be where Canada is heading with its legislation on the digital economy. The Online News Act<\/a> and Online Streaming Act<\/a> already drove unintended consequences, as predicted. In addition, Canada is risking a trade dispute with the US<\/a> over its approach to taxing digital services.<\/p>\n

It is so very tempting to intervene in the marketplace. It takes much stronger leadership to trust in the power of competitive markets. Look at the telecom market. Canada ensured there are 4 well-capitalized facilities-based wireless service providers operating in most of the country, including all population centres. These service providers have sufficient spectrum and technology to compete in both mobile and fixed markets.<\/p>\n

Continued regulatory intervention in the marketplace threatens to return Canadian telecom to the haphazard Calvinball era<\/a> of a decade ago. Such an environment discourages investment, precisely the opposite of what is needed to drive productivity. <\/p>\n

Government needs to try a new approach. Stand aside.<\/p>\n","protected":false},"excerpt":{"rendered":"

I have frequently written about government keeping out of the way. The phrase “out of the way” appears in about 25 of my posts. Twice, I used the same title, “Getting out of the way” [2012, 2016]. Earlier this year, in “Let the marketplace work”, I describe government policies and regulations inhibiting capital investment by …<\/p>\n

Staying out of the way<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18593","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nStaying out of the way • Telecom Trends<\/title>\n<meta name=\"description\" content=\"I have frequently written about government keeping out of the way. The phrase "out of the way" appears in about 25 of my posts. 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