Washington, D.C. (10/13/2022) – The Bureau of Labor Statistics released the latest Consumer Price Index (CPI) on Thursday, confirming that inflation is still historically high for Americans. The CPI shows that inflation increased 0.4% last month, a clear sign the economy has a long way to go before it recovers. While inflation remains a problem, some in Congress are trying to pass the American Innovation and Choice Online Act (S. 2992), a bill that would raise prices even higher by breaking up popular, cheap products and services consumers enjoy every day. Experts have been sounding the alarm for months on how S. 2992 would harm consumers.
In June, Krisztina Pusok and Steve Pociask of the American Consumer Institute wrote that large online platforms “help small businesses reach a large pool of consumers” and noted that small businesses “say online marketplaces help them compete with larger retailers.”
Economists from the Small Business & Entrepreneurship Council warned in January that S. 2992 could “significantly alter the very digital conveniences…entrepreneurs and their employees use to access the open consumer marketplaces” and that the bill “ignores this market reality.”
Last December, an analysis from the Disruptive Competition Project found that “increased use of digital tools by both consumers and producers tends to put downward pressure on prices by enhancing competition,” something S. 2992 would change fundamentally.
It’s clear the experts agree online marketplaces help to lower inflation. Congress should take note before passing a bill that threatens services whose products help combat inflation.
Read more about how S. 2992 could worsen inflation here.
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