The U.S. Chamber of Commerce gathered top economists and business leaders this week to discuss how America will compete in today’s global economy. While discussion ranged from economic theory (what is productivity and how do we define it) to corporate tax policy, the part we found most interesting dealt with government regulation in the private sector.

Verizon Executive Vice President Tom Tauke led this discussion, citing three things that he says are crucial for U.S. competitiveness and innovation: people, trade and capital. The attraction of capital is tied to regulation, he said, with heavy regulation the equivalent of a heavy tax—it will deter investment and stifle innovation. Asked about regulation specifically in the telecom sector, Tauke explained that the Internet marketplace has had such robust growth and private sector investment because of de-regulation during the Clinton Administration. The problem now, he said, is that some people want to apply an old, monopoly-style regulatory environment to a multiple-player, thoroughly modern industry. Although Tauke argued intervention is not needed at all, he also said Verizon is a good player who will stand by the rule of law, he just hopes that rule of law makes sense. If we are going to regulate the Internet, he warned, the rules should at least be as modern as the industry, and are best decided by Congress, as he outlined in a speech at NDN last week.

As members of Congress continue to mull over the FCC’s National Broadband Plan, the role of regulator and enforcer, and who should play it, will no doubt continue to be a topic of great discussion. Be sure to follow that debate right here on NextGenWeb, and click below to watch archived footage of Tauke’s remarks.

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