OPINION:
Americans don’t expect and really don’t want the government to run the economy. Instead, they hope it will create conditions in which jobs are created, wealth expands, and new businesses not only survive but also thrive.
Achieving this state has been one of President Trump’s primary objectives. So far, he has kept his eye on the ball. In his first term, he cut taxes, slashed red tape and put the interests of working Americans ahead of those of multinationals and money movers who had closely aligned themselves with Barack Obama and Joseph R. Biden.
Mr. Trump’s second term began auspiciously, with the White House focused on securing favorable trade deals to enable American industry to prosper. Some in Congress, unfortunately, have other ideas and have kowtowed to well-heeled special interests at the expense of working men and women.
That must change, and Mr. Trump must take the lead. One of the American system’s significant innovations is the respect built into it for the individual’s right to property. It is mentioned in the Constitution, as the Founders believed the success of the nation rested in many ways on the ability of people to secure rights to the property gained through their labor.
After more than 200 years, the definition of property has expanded, and it now encompasses not only tangible things but also intangible ideas. The recognition and protection of intellectual property, the products of human thought, are even more critical now that the global economy runs as much on zeros and ones as it does on fossil fuels and ball bearings.
For some time now, what used to be referred to as “Detroit” has flexed its power in the marketplace and on Capitol Hill, pushing independent mechanics and parts suppliers out into the cold, leaving them unable to access the thousands of bits of information involved in fixing cars and trucks. It has created an auto repair monopoly for vehicle dealerships. The people who build our cars and trucks also want to be the only ones who can service them. From the free market perspective, that’s not fair.
A bipartisan measure making its way through Congress addresses the issue effectively. The REPAIR Act makes the distinctions necessary to protect the rights of innovators producing new products that are truly cutting-edge while preventing auto companies from using IP law to stifle competition from local small businesses that service vehicles and often serve as a gateway to the middle class for working Americans.
This is about the foundation of the U.S. economy. The vehicle supplier industry, which supplies the parts needed for vehicle repair, is the largest piece of the nation’s manufacturing sector. It involves more than 4.8 million Americans, mostly working-class individuals or small-business owners and operators. They’re also Trump voters whose interests are of great concern to the White House.
If Congress fails to step up, this economically essential network of manufacturers, mechanics and suppliers remains at risk. If current trends continue, by 2035, consumers could face additional costs of $34 billion on top of what they should be paying for car and truck repairs. Even now, they are paying the price.
Today, more than 60% of independent repair shops experience weekly, if not daily, difficulties making routine repairs. Just over half of independent repair shops report sending as many as five vehicles each month to a dealer for repair because of data restrictions imposed by “Detroit.” It’s a perversion of the concept of property rights, which means consumers have fewer options, face longer wait times and pay higher prices.
You would think that the restrictions might lead to safer vehicles on the road, but you’d be wrong. In testimony before Congress, Jonathan Morrison, named by Mr. Trump to lead the National Highway Traffic Safety Administration, explained that the hoarding of data has a deleterious effect on the nation’s automotive fleet.
“The ability of vehicle owners to service and maintain their own vehicles, or have their vehicles serviced or maintained at the facility of their choice, is important to ensure safety,” he said, promising to support efforts such as the REPAIR Act that, in his words, “provide consumers with secure access to data necessary to maintain or service their vehicles.”
It’s not just about keeping the nation’s vehicle fleet running safely. It’s about what’s best for consumers. Independent shops can perform the same work as dealerships, just as well, if not better, for about two-thirds the cost. Forcing commercial vehicle operators to use the more expensive option by involving nebulous IP concerns drives up costs for essential goods and services.
This is precisely the kind of anti-competitive behavior the Trump administration wants to eliminate. Mr. Trump believes in free markets, intense competition and empowering the American worker rather than compromising with monopolistic entities that squeeze consumers and strangle small businesses.
That’s why the REPAIR Act is necessary. It restores balance by ensuring that independent repair shops and aftermarket parts manufacturers have access to the critical data needed to perform their jobs.
The Trump movement is about shaking up the status quo to deliver results. The REPAIR Act is a textbook example of how to achieve this, leading to lower prices, increased competition and support for jobs in America in an environment that promotes growth rather than protectionism.
• Stephen Moore is a co-founder of Unleash Prosperity and author of the book “The Trump Economic Miracle.”
Please read our comment policy before commenting.