A small section of a big law causes big problems…and normal for small businesses in America has yet to materialize. Could large tech companies lead the way?

Earlier this year, the CEO’s from Facebook, Amazon, Google, and Apple testified before the US House of Representatives Antitrust Subcommittee and declared that their business models speak for themselves. Their design for success and growth without the heavy hand of government regulation stifling their innovation and creativity made them what they are today. In their opinion, the best path forward for the future is to continue in the same way of the past. Not everyone agrees.

As the same group of Tech leaders prepare to testify again later this month – only this time before the US Senate’s Commerce Committee - the US Department of Justice and Attorneys General across the nation are involved in active investigations as to exactly how responsible these companies are in their business.

At issue in this hearing will be Section 230 of the Communications Decency Act. Tucked inside the Communications Decency Act of 1996 is this section that has protected tech companies from liability over the content posted by users on their online services even while moderate that content.

Section 230 says that "No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” Advocates of free speech maintain this section has allowed them to advance their ideas without fear of retribution or censure. Opponents of this section see it as a legal loophole enabling false information to be foisted on an unsuspecting public that can’t tell the difference between truth and lies.

The issue is complex. Absent this section of the law, it is doubtful the tech platforms would have been able to find their niche in the market to become powerful engines of innovation. The protections of Section 230 have, without doubt, allowed questionable information to be broadcast without regard for its accuracy and effect. Section 230 is unique to U.S. law. European nations, Canada, and Japan do not have similar statutes on the books. This raises the question for many on both sides of the political aisle as to what, if anything, should be done?

The American economy is sputtering. Total non-farm payrolls rose by 661,000 in September and the unemployment rate fell by about a half a percentage point to 7.9% for the month. This improvement was weaker compared to prior months—in June the economy added 4.8 million jobs, in August 1.5 million.

Overall, the nation is down 10.7 million jobs from where it was in February, the month before the pandemic hit the U.S. in full force. Long-term unemployment, where people are out of work for 27 weeks or more, is on the rise.

Alignable, a small business referral network with vast connections to almost every sector of the economy, has been doing detailed research on the status of small business in America. Its latest findings show some positive developments in the adjustment and innovation of many of America’s small businesses to adapt to the new normal created by the pandemic.

Yet, as we come into the 4th Quarter of the year, their survey finds that more than 42% of small businesses may not survive into 2021. That is a staggering figure. The potential for a widespread contraction in the economy in the 4th quarter is probable as government funds injected directly into the economy have come to an end.

For recovery to continue, innovation must remain a priority. Perhaps now would be a good time for the large tech companies to invest in small businesses so that new businesses could emerge out of the rubble and one success could build on another. That is exactly how these tech giants were born, and that has always been the path of recovery in a free market economy. Investment by others to empower new growth has always been the engine of American ingenuity.