While we have been bailing out folks for awhile now, in the next few months as the Obama team and the powerful Dem Congress set and implement their agendas, expect more bailouts via tax cuts, mortgage adjustments, and spending on everything from bridges to “National Bee Museum” parking lots.
We offer up a nugget from Schumpeter’s 1934 work The Theory of Economic Development, in the hope that some policy makers will remember that creating new things (not preserving old ones) is at the core of sustainable growth that raises living standards. Here is J A Schumpeter explaining a core motive of entrepreneurs:
“there is the joy of creating, of getting things done of simply exercising one’s energy and ingenuity… Our type seeks out difficulties, changes in order, delights in ventures”
We hope that policy makers take this simple idea — that the creation of the new, not the protection of the old, is what keeps entrepreneurs and economies moving into the future. So spend if you will, but please find people and groups focused on facing challenges and creating new futures, not preserving ‘glorious’ pasts and avoiding more difficulties.