The current administration’s controversial federal regulatory policies (the US Treasury Department’s stunningly bad bet on Solyndra, the NLRB’s tone death sanction against Boeing, the EPA’s onerous new rules imposed on, well, everything) place heavy-handed bureaucrats in Washington squarely behind the wheel on the road to America’s economic future.  In each of these cases, the White House has empowered federal regulators to decide outcomes best left to the free market.  Washington, it seems, knows best. Against this backdrop of regulatory overreach, we await another major decision – the approval by the Department of Justice and the Federal Communications Commission of the potential merger between AT&T and T-Mobile.

Of economic concern, however, is not the Federal government’s decision to approve or reject the deal, but whether the FCC will use its responsibility and power to approve the deal to also impose new regulations on the entire telecom industry. Doug Holtz-Eakin warns, “already we are seeing calls for a presumptive regulatory response.” He worries that “the U.S. will continue down an overly regulatory, prescriptive approach to competition that is doomed to fail.”

The greatest risk to a free, wide-open Internet is that overreaching regulators are using the merger review process to mandate new policy – circumventing the congressional review process to impose regulatory restrictions such as the controversial “net-neutrality” rules. “The job of regulators should not be to choose the best market strategy,” wrote James Gattuso, a Senior Research Fellow with The Heritage Foundation in a May report.  “It should be simply to make sure that the marketplace itself is working. In wireless, it’s working remarkably well, and there is every reason to believe it will continue to do so after the acquisition is completed.”

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Washington News Observer today covered Republican Leader John Boehner’s economic roundtable which featured economic experts such as Doug Holtz-Eakin and Larry Lindsey. Our coverage may be viewed below or on our website, www.washingtonnewsobserver.com

Boehner stated: “You have to remember that President Obama, Speaker Pelosi, and Majority Leader Reid, have never run a business, much less ever had a real job in the private sector. So how would they know what it takes to create real jobs?”

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