At the Phoenix Center’s Law and Economics blog, Larry Spiwak examines the role of government stimulus in improving the economy:
During periods of economic sluggishness (such as the current situation), we found that government spending has zero effect on private-sector job creation. This result is consistent with the apparent impotence of huge federal government spending increases aimed at reducing unemployment. In contrast, when it comes to job growth, expansions in private investment are effective in both regimes, but its efficacy is greatest during economic stagnation. By implication, policies that discourage private investment may have more severe job-killing effects during economic downturns, since it is during the low growth periods that private investment is most effective at creating jobs.
While Spiwak is looking at the effect on the economy as a whole, it’s worth remembering that private investment in our broadband infrastructure — be it wired or wireless — continues to at a blistering pace. All the more reason for regulators to make sure not to get in the way and ensure its regulatory framework keeps up with the changing times.