IPI Publication Press Release
IPI Issue Brief
Related Publication Title:
The Real Economic Costs of the Microsoft Decision
Released by Sonia Hoffman on 06/29/2001
IPI Issue Brief
Related Publication Title:
The Real Economic Costs of the Microsoft Decision
Released by Sonia Hoffman on 06/29/2001
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For IMMEDIATE RELEASE
Friday, June 29, 2001
Contact: Sonia Hoffman, (972) 874.5139 or shoffman@ipi.org
Dallas, TX: The decision of the courts in the Microsoft case doesn’t make up for the real economic damage already done by the Fed’s pursuit of the company, but it does help avert further harm that would have cost the average American $507 in foregone goods and services and the economy 44,900 jobs, according to a study by the IPI Center for Technology Freedom.
"Initial investor fears over what might happen to the future profitability and viability of the software giant increased risk, and with it, the cost of U.S. capital," say IPI Senior Research Fellows Gary and Aldona Robbins, authors of the study. "Workers, savers and investors – and even the government in the form of reduced tax revenue – would have suffered the consequences of these higher capital costs. In these economic conditions this is all great news."
Now that the course of events has turned, Americans and the economy have been spared losses that over the next several year (2000 to 2010) would have resulted in:
· GDP would have dropped by $147.2 billion. By 2010, the annual loss would have been $20.1 billion;
· Personal income would be lowered by $59.6 billion;
· Gross saving would have fallen by $77.6 billion;
· Investment would have fallen by $65.8 billion; and,
· U.S. exports would have decreased $14.6 billion
Standing by the penalties would also have cost federal and state governments at least $52.5 billion in foregone tax revenue. Federal receipts would have declined by approximately $34.1 billion and those of states and localities by $18.4 billion.
This information is taken from the IPI Center for Technology Freedom's Issue Brief, "The Real Economic Costs of the Microsoft Decision" by Gary and Aldona Robbins. For copies or further information, visit www.ipi.org or call Sonia Hoffman at (972) 874-5139 or by email at shoffman@ipi.org.
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