Concentration Has NOT Increased, yet Policymakers Insist on Favoring Small Businesses. This Hurts Growth and Social Welfare, Says ITIF
Riley Nelson[email protected]
WASHINGTON—In advance of the House Small Business Committee hearing today regarding competition and small business, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Julie Carlson, ITIF’s associate director of the Schumpeter Project on Competition Policy:
Policymakers keep focusing on the misguided notion that concentration in the U.S. economy has increased and that it’s harmful to small businesses. This is not true—concentration has not increased, yet policy still tilts significantly in favor of small businesses across a wide array of issues, including tax and spending.
Smaller entities face less stringent reporting and compliance requirements under environmental, disability, and civil rights regulations and laws. Meanwhile, the large companies pay workers more, hire more women and veterans, and do more R&D than small businesses.
If we want to spur growth and improve social welfare, we shouldn't demonize big business for their size. The evidence shows big business creates the best jobs, the most value for consumers, and many other things Americans care about.
The Information Technology and Innovation Foundation (ITIF) is an independent, nonprofit, nonpartisan research and educational institute focusing on the intersection of technological innovation and public policy. Recognized by its peers in the think tank community as the global center of excellence for science and technology policy, ITIF’s mission is to formulate and promote policy solutions that accelerate innovation and boost productivity to spur growth, opportunity, and progress.