The other day, I had a few friends over at the house, and we were discussing the latest and greatest technologies which will solve many of the problems that mankind faces, some imaginary, and some quite serious. Indeed one of the individuals reminded me that the government has just invested in one of these new technologies, a technology which I am personally fond of. However, he was dismayed at the fact that I was not in approval of my tax dollar being spent to bring these new technologies, products, and services into the free-market.
Indeed, I’d like to talk about this for a moment if I might, because he seemed to have coupled my vision for these new technologies, to the need for government to invest in them. You see, I am a Milton Friedman type economist, and I believe in free markets through and through. I do not believe that it is smart for the government to throw money at industry or a new technology. I believe in pure research, and that would be okay for the government to invest in, as it might serve many uses from military and protection of the American people to a solid energy choice.
Unfortunately, whenever the investment comes from government, it makes the industry weak, it’s like the easy money promotes inefficiencies, as opportunists line up to get their share of the free flow of money that is stimulating that new technology. If the technology is truly efficient and better, and if profit can be made through that efficiency, and if people and industry truly wants it, they will invest in it. That means there will be opportunity for entrepreneurs, corporations, and those that wish to bring it to fruition. We hardly need the government for that.
Okay so, what I’m saying is there will always be money for smart technologies, and we hardly need the government to get involved with our tax dollars. We’ve seen far too many bad loans, and poor government investments. It seems as if the government at all levels believes that somehow they are wiser than business people. The reality is that wise businesspeople are already in business, they are not in the government. Those that can’t compete in free markets often choose to go to the government side as a career path.
An industrial capitalist or entrepreneur is nothing of the sort, and we shouldn’t mix the two. Indeed I hope you will please consider all this, and although this is a very short article, and I can go on easily for 10 hours without taking a break on this topic, you can no doubt see where I’m coming from.