While most conservatives are focusing on the dangers posed by the Green New Deal proposals, few have taken notice of the dangerous rhetoric coming from the Sen. Elizabeth Warren’s presidential campaign.
If her proposals were to ever become law, the United States government would gain a massive amount of power over private corporations. The federal government would not only be able to dictate what can and can’t be sold, but also break up existing mergers and even large companies that it doesn’t like.
In a recent op-ed in Medium Business, Team Warren does make some valid points. It notes that large businesses such as Amazon, Google and Facebook have pushed many small competitors out of the market, used private information for personal profit, and used their power to get laws passed that would enable them to make even more money. Mergers between large corporations and up-and-coming competitors have left consumers with fewer options in many cases. However, Sen. Warren’s solution to the problem is almost worse than the problem itself.
The Massachusetts senator’s proposals would call for the federal government to take on more authority over companies by telling them what they can and can’t produce and sell. The proposals, which would kick in once a company makes $25 billion a year, mandate that companies (such as Amazon and Apple) that sell third-party products would not be able to sell their own products on the same platform. In fact, these and other companies would be designated as “platform utilities” that would have to meet government-set standards of fair, non-discriminatory behavior. Existing mergers would be forcibly broken up, including Amazon’s purchase of Whole Foods and Zappos, and Facebook’s purchase of Instagram and WhatsApp.
Warren cites the U.S. government’s action against Microsoft, noting that limiting Microsoft’s ability to dominate the search market allowed other companies (such as Google) to get off the ground. However, she fails to note the fact that the reason Bing didn’t do as well as Google is that Google offered a better product. Microsoft still provides a free internet browser with Windows; however, most people opt to download Google Chrome or Firefox because they consider these products better than Internet Explorer.
The team also fails to note the fact that there are millions of consumers in the United States who prefer generic products made by large companies to products made by their competitors. AmazonBasics’ new electronic cables, for instance, have been praised by consumers and industries alike for being both inexpensive and reliable. Apple uses its App Store to help users keep their iPhones secure on an ongoing basis. If Sen. Warren had her way, Amazon would not be able to manufacture goods, and Apple and Google would not be able to allow users to download their own apps on their app stores.
Companies that provide integrated services that improve daily living for people of all ages and walks of life would be forced to segregate these services in order to comply with Draconian new laws. Entrepreneurs who are wildly successful in the future would need to limit their success in order to avoid becoming a “platform utility” that would run afoul of the Warren administration.
While some of Sen. Warren’s proposals may sound like welcome suggestions, especially to those who have been hurt by Google, Amazon, Apple and Facebook, they are alarming to anyone who understands that the government has no business playing Super CEO. Giving the federal government authority to tell companies what to do and how to do it will stifle innovation without helping small and medium size business owners improve their lot in life. In fact, any government that is serious about creating an environment where innovation and small businesses will flourish should start by eliminating useless regulations that make it difficult for entrepreneurs to get a business off the ground.
~ Patriotic Freedom Fighter