Yesterday, the Progressive Policy Institute hosted an event on communications and job growth in the economy, featuring Rep. Ron Kind.  At the event, economist Michael Mandel released his paper, “The Coming Communications Boom? Jobs, Innovation and countercyclical Regulatory Policy.”

From the paper’s findings:

“Studies have produced a wide range of estimates for the size of extra costs, but it’s only with firms engaged in wireless telecom and computer systems design, seem to be emerging as ‘job leaders’ in the next economic expansion. Unfortunately, these companies are also embroiled in struggles with federal agencies – and among themselves – over whether more regulation is required to police competition in communications.”

“With unemployment stuck at just under 10 percent, federal policy makers would be wise to take a countercyclical approach to regulatory policy as well as fiscal policy. No serious economist wants to clamp down on public spending or raise taxes until the economy starts creating jobs at a more rapid clip. By the same token, there should be no rush to regulate sectors of the economy that are finally beginning to reweave the severed connections between innovation and new jobs.”

Some more highlights from the event:

Rep. Ron Kind: “We need to keep this innovation growing -  the growing job market is in the broad communications sector. We need to find the best policies for competitive positioning for our country.”

Michael Mandel: “As table one (in the paper) shows, the most innovative industries are shedding jobs – EXCEPT broad communications companies (table 3 shows the past industries that grew during recessions). Industries that grow in recessions tend to be the leaders in the next boom and continue to grow, setting up counter cyclical regulatory policy – as evidenced by past ‘booms & busts.’” Heavy handed regulation is not needed now as it is easier in the busts to encourage growth – regulation would only stifle that growth…in a boom and bust you need to loosen up to encourage innovation which will lead out of the bust.”

You can read Mandel’s full paper here.