By Gary Shapiro
President and CEO at Consumer Technology Association
President and CEO at Consumer Technology Association
Politicians are fixated on regulating tech. Yet, tech regulations don’t even make the top 10 list of Americans’ concerns. But, guess what does top their list– inflation.
Let’s allow the facts to speak for themselves:
Tech has been the biggest deflationary force in American economic history. The price of technology products consumers use has gone down each year as the quality and offerings increase. For example, in 2000, Best Buy sold a 32-inch analog tv for $499. Today, Best Buy advertises a 32-inch HDTV for just $159 and its picture is more than 12 times better, it uses four times less energy, and is a Smart TV with access to far more content. Since 2000, TVs and other tech product prices have dropped while their quality has improved. Meanwhile, from 2000 to 2021, the overall consumer price index has risen a total of 68 percent. (The same can be said for telephones, laptops, desk top computers, navigational devices, and a myriad of new products like tablets, smart watches, and smart speakers.)
The tech industry has been extremely beneficial to most Americans. Not only do we depend on these low-cost services and products, but we have benefited from having them as investments in our IRAs and 401(k)s. Only now, with the regulation drumbeat from government did tech stock valuation go down.
Tech prices are creeping up, but Americans know why. The combination of government-imposed tariffs, supply chain issues, shippers overcharging, and chip shortages have forced some services to rise in price. The many popular American services like Twitter, Facebook, and Google, as well as Amazon, have provided Americans extremely free or low-cost options to get their products, services, and entertainment. More, these technologies have helped Americans survive Covid the last two years. Without the tech industry, the pandemic would have been tremendously worse for Americans.
Many absurd proposals are coming out of government. None of them get to the root of the problem and the number one concern for Americans. If government wants to get serious about reducing inflation pressure it can immediately remove tariffs (aka taxes) and eliminate the shipper antitrust exemption. Political rhetoric isn’t going to fix our economy, but addressing inflation will.
