While the U.S., in general, has seen a good deal of economic downturn, one industry is playing a critical role in financial recovery while also creating new jobs – the communications industry. In a CNN online editorial, Michael Mandel, founder of Visible Economy LLC, called for “countercyclical regulatory policy” in order to ensure that this positive economic development continues. Mandel writes:

“The communications sector is one of the few bright lights in an otherwise dismal economic picture. Facebook just reported its 500 millionth member; Droids are flying out of stores; and the iPad is the latest “must have” in technology. To enjoy the new toys, Americans are paying for more powerful mobile connections, too…

This strength signals that the broad communications sector can help drive recovery, because businesses that hire during a recession usually carry that strength into the subsequent upswing. If history is any guide, these job leaders may grow at least twice as fast as the rest of the economy during the next expansion.”

Because of this positive trend, Mandel argues, government should do everything it can to maintain a regulatory environment that promotes investment and innovation. He calls on Washington policymakers to “hitch a ride on the communications sector and find ways to stoke the jobs and spending engine a little bit.” But, Mandel states, “Proposals to regulate Internet activity now before the Federal Communications Commission would do the opposite.” So what do we need in order to continue this unprecedented growth?

“What’s needed from regulators now is some creativity and humility — in the form of “countercyclical regulatory policy.” This gives innovators a bit of breathing space at the start of an economic recovery, but sets the stage to tighten regulations later on if excesses develop…

This approach does not mean regulators can go to sleep nor does it mean they can raise the flag of laissez-faire. What’s needed is the nuanced judgment of sentries posted at a tense border spot. With watchful eyes, regulators must practice thoughtful restraint that allows space for job leaders to innovate and hire, while remaining ready to aggressively confront violations of law or abuses of consumer rights if they take place.”

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