Here’s a revelation, regardless of your industry: The internet economy has grown seven times faster than the total US economy over the past four years and now accounts for 12% of US GDP. This comes from a relatively young industry that has captured the attention and the imagination of the nation, and it is according to the latest edition of a report, formerly titled “The Economic Value of the Internet-Funded Ecosystem. advertising, ”from the Interactive Advertising Bureau and John Deighton, Harold M. Brierley Emeritus Professor of Business Administration at Harvard Business School, a report I was fortunate to see emerge in 2008 when I was marketing director at the IAB. Now the fourth version of this comes in a 136-page report, with a new, somewhat lengthy title, “The Economic Impact of the Market-Making Internet – Advertising, Content, Commerce and Innovation: Contribution to US Jobs and GDP.” This one headline marketing bite is probably meant to show just how big the economic impact has become!
The Internet Economy’s Contribution to U.S. GDP Grows 22% per year since 2016, in a national economy that is growing between 2 to 3% per year. In 2020 alone, the advertising-supported internet economy contributed $ 2.45 trillion to the country’s $ 21.18 trillion GDP. mind boggling.
The report continues to establish that the ad-supported Internet is a source of innovation and jobs, not just for big companies, but for thousands of small ones across the country. To witness it:
- Over 17 million jobs in the United States have been created by the commercial Internet, 7 million more (!) Than four years ago.
- More Internet jobs (38%) were created by small businesses and the self-employed than by larger Internet companies (34%).
- And every congressional district lives in part on internet-dependent jobs – and in many cases, at least 10% of their residents work directly in the internet ecosystem, which represents 9% of total internet jobs in the United States – United.
In fact, the study shows something that one might not assume. Jobs generated by the digital economy have flourished across the country and aren’t concentrated just in places like Silicon Valley that most people would expect. To quote the report itself: “Despite the popular impression that Silicon Valley and a few other regions are home to the Internet, the top 10 congressional districts had only 12% of the jobs and 25% of the jobs were distributed. in the 50 lighter. % of congressional districts. No district had fewer than 347 internet-dependent jobs, as infrastructure workers were widely dispersed, as were people selling or creating on the internet.
This news comes as more and more people in Washington, DC believe they know better than leaders in the digital economy how to get into operations and run the businesses that have given us new avenues for communications and entertainment – and jobs. Politicians who have never worked in a digital company before are claiming the expertise to be able to decide which direction those same companies should take. Digital media, as it fuels the nation’s thirst for growth like no other source, has become the easy target from which every politician can create a new populist donation campaign strategy, even if they are uninformed.
Suddenly everyone is an expert. Do you have a seat in Congress and no real world job? These qualifications obviously make you an expert in how digital media works. For goodness sake you have used social media and research to raise money to fund your campaigns and have read newspapers and magazines your entire life. You know how it works …
These days it seems the only thing the left can get along with with the right is that digital needs their bottomless intervention to work properly. Put a leash on this crazy internet and voila, happy America. It doesn’t matter where you are on the political spectrum, whether you’ve started a digital publication or are a leader in cable news broadcasts, or whether you are in the lower or upper house of Congress in Washington. , you are an expert on what is wrong and how to fix multibillion dollar businesses that employ millions of people across the country.
The national conversation is inundated with naive – and constitutionally dangerous – ideas that include asking business owners to monitor in real time and gag the dynamic rhetoric they are supposed to understand as “unacceptable.”
This same inability to understand digital advertising, and why the solutions are really more harmful than useful, applies to the bipartisan proposed legislation by Senator Amy Klobuchar (D-MN) and Senator Chuck Grassley (R-IA). Without any supporting data, he cites unforeseen “damage” to competition, online businesses and consumers. If you want to know who and what will put the country in danger, read the text of the legislation.
What the data tells those of us who aren’t drawn into the emotional tornado of blaming the internet is that the existing, ad-supported internet is creating new markets and driving job growth for Canadians. big and small enterprises. Today’s leaders in the field are constantly faced with challenges and competition from small businesses. There is competition like investments are flowing in new emerging companies, not just the supposed “Big Tech” boogie man – a 124% increase in overall seed funding / VC funding in the US in the past year alone. Does Senator Klobuchar want to reverse the booming investments in small tech in Minnesota, which were not hampered by big bad tech but instead? saw an increase of 643%! Who do we trust more to drive this type of investment and innovation? A former lawyer and her bipartisan colleague who has served in Congress since 1981 or a market of tech pioneers?
The National Economic Research Associates (NERA) has just published a report which estimates the total economic costs of seven recently proposed congressional antitrust bills targeting tech giants. The cabinet estimates that subjecting these companies to the restrictions suggested by lawmakers would ultimately cost consumers $ 300 billion. Remember that all politicians’ claims that “companies” will take the note forget that the note is always passed on to you-know-who.
But wait, it’s getting worse. NERA’s analysis also shows that such antitrust measures would disproportionately affect American companies, hampering their competitiveness on a global scale.
Is there any doubt that members of Congress on opposite sides of the aisle can’t even agree on who was elected president last November, but we have to trust their sudden agreement on this? I don’t know about you but I wonder why a question of historical importance to the survival of the country is relegated to the tactics of intervention in industries. And in the case of the legislation in the two people’s questions who have not led anywhere near the number of jobs and dynamic economic change than the advertising-supported Internet.
Another ill-advised bill, the “Ending Platform Monopolies Act”, sponsored by US Representative Pramila Jayapal (D-WA) from Amazon’s home district in Seattle, forcing Amazon to choose between its proprietary and third-party retail platforms. It doesn’t matter whether Amazon’s third-party sellers have created a estimated at 1.8 million jobs in the United States to manage, operate and support their Amazon related activities. Even if this number is a little inflated, it is a lot of jobs that will disappear if the law passes.
Damn it. Can’t we just do as we usually do and agree to disagree? Wouldn’t that be less of a concern than jumping all together on the same delusional score that if only the politicians in Washington got involved in running the internet, we would finally sort out what’s wrong with our nation?
Billions of dollars are currently flowing through the open market to businesses of all sizes and to employees and the self-employed (hello!). Instead of trying to stifle our best deals with the flawed common wisdom of reckless legislation, we should be encouraging these companies to help fund the historic ideas we have for infrastructure and the entire Build Back Better agenda.
Lawmakers claim that all of this legislation is bipartisan and popular and good for you. But let’s face it, like castor oil, it’s a really dated, even bitter treat. Furthermore, none of its claims to cure ailments are supported by real data.