I do not care if it’s a cartoon show, I love Spongebob Squarepants. No matter how old you are, you’re never too old for a laugh from a silly show. If you’ve never watched, one ongoing plotline is Spongebob working for a successful burger joint, The Krusty Krab. Meanwhile, Plankton, the owner of the competitor and nowhere near as successful a restaurant, Chum Bucket, tries a myriad of ways to steal the Krabby Patty secret formula, and always ultimately fails.
Like the Krusty Krab dominating the food scene of Bikini Bottom, since the end of World War 2, America has been the economic superpower of the globe. The difference is, that the secret formula for America isn’t a secret, it’s just that some people want to deny it: freedom and free markets. The fact that America has been the economic engine and innovator of the world should come as no surprise. Our First Amendment allows for the free exchange of ideas, and with it business ideas. Our relatively-strong system of property rights allows people to leverage property into wealth. Our culture of American exceptionalism encourages risk-taking and bold visions. We understand that businesses, especially small businesses, are what create value for society, not the government, and as a result, we reward those who are successful in a free market society. As President Calvin Coolidge said, “the business of America is business.”
We as Americans have been able to maintain this competitive edge despite a rapidly changing world. In the 20th century, America was the factory of the world. Today, you could argue that our number one export is ideas and innovation.
It’s sad to see then so much effort by some to mess up this not-so-secret formula. It seems like not a week goes by now without some new proposal, usually out of Washington, trying to target companies, especially technology companies, not because they’re harming consumers or failing to innovate, but because they’re too successful or we don’t like them. For example, for roughly 50 years we used antitrust only if a company was actively looking to restrain trade and harm consumers. Now, the focus is on targeting companies like Google because it’s somehow too monopolistic and bad for consumers, except nothing prevented me from going to AskJeeves a decade ago. I went to Google because it delivered better results. Today, nothing prevents me or anybody else from going to Duck Duck Go if I’m concerned about my privacy. The free market always provides alternatives, even if it’s not on my timeline. As tech expert Alec Stapp recently pointed out, we assume that because of how large some of today’s largest companies are, it is difficult to enter the market. Yet the internet has the opposite effect, lowering the costs for new competitors more than ever before.
Trying to deviate from the formula for America’s secret sauce of innovation, we risk America’s competitive edge in the world. Instead, we should seek to double down on what has given us our edge in the first place by improving things like our tax and regulatory environment. It’s why Beacon has called on Tennessee lawmakers to consider a regulatory sandbox for example. By creating the best environment for small businesses and entrepreneurs looking to create and invest, we can ensure Tennessee’s economy is a leader for generations to come. Unlike a Krabby Patty, the formula isn’t a secret, but alter it at your own peril.