Politicians also have a love affair with the 'small business exemption.' Too much paperwork? Too heavy a burden? Not enough time? Just exempt small businesses from the rule. It sounds so pro-growth. Instead it's an admission that the costs of a regulation just can't be justified.

The American formula for creating business is not to have the government create business.

Not since the steam engine has any invention disrupted business models like the Internet. Whole industries including music distribution, yellow-pages directories, landline telephones, and fax machines have been radically reordered by the digital revolution.

The Internet creates as well as destroys. Social networks, search advertising, and cloud computing are multibillion dollar industries that didn't exist 10 years ago. They are products of the same force that has rendered the Postal Service's core business obsolete.

Energy and environmental regulation, transportation, and broadband policy all benefit when legislators have a basic grounding in the technical concepts behind business models, products, and innovation.