Innovation


By CARL J. SCHRAMM:

Trump should set a goal: fix the business climate so a million Americans a year can start companies. . . .

More people have joined the ranks of the chronically unemployed, slipping into poverty at alarming rates as their skills decay and dependency on public assistance grows. Considering population growth, America needs at least 325,000 new jobs every month to stanch the growing numbers of discouraged workers. . . Merely bringing back factories from overseas will not solve this problem. Technology has made every factory more productive. Fewer workers make more goods no matter where they’re located. At the same time, fewer U.S. businesses are being started. . . .

New firms are the country’s principal generator of new jobs. Data from the Kauffman Foundation suggest companies less than five years old create more than 80% of new jobs every year. . . .

This absence accounts for an estimated seven to 10 million jobs that, had they existed, could have provided employment for every one of the nation’s discouraged workers. Simply put, the U.S. will never reach full employment without more startups. . . .

First, increase economic growth. More businesses start when GDP expands at 4% rather than 2%. Existing businesses look for new markets, often turning to young companies for innovative ideas. . . .

Mr. Trump should also focus less on Silicon Valley, which already receives disproportionate attention from Washington. . . .

Government must also widen the scope of innovation by stepping back and letting the market find the future. By promoting trendy ideas and subsidizing politically favored companies, government dampens diversity in creative business ideas. Why start an electric-car company when the federal government already has picked the winner?

The new president must also make it possible for local banks to get back in the business of financing startups. For 200 years, community lenders were the principal source of capital for startups. The application of complex Dodd-Frank provisions has led community banks to finance fewer and fewer promising businesses—despite their unique knowledge of local markets. . . .

Mr. Trump can also reverse regulatory sprawl and cut government-imposed requirements that add to every entrepreneurs’ costs and risks. Anti-growth policies like ObamaCare and minimum-wage increases make hiring workers prohibitively expensive. Municipal regulation is particularly onerous. Cities commonly use sanitation and building codes to protect incumbent businesses. Uber cannot operate in many cities because officials have chosen to protect local taxi cartels, denying their citizens the innovative efficiencies of the shared economy.

With these policies in mind, President Trump should set another goal: that his administration will create an environment that enables one million Americans to start companies every year.

 

Here

Pols and regulators should butt-the-hell out of corporate mergers and other actions that disrupt the status-quo. See Democrat primary loser and hypocrite for supporting corporate shill Hillary Clinton Bernie Sanders for example. Trump also said he opposes it.

Employees of the merging firms must figure out how best to serve their customers and shareholders.

Remember folks, firms have to work within the current regulatory and legal framework. If gov’t wants to do something useful it should deregulate telecom and scrap net neutrality. Those constrictions led the decision-makers in this deal to view a merger as a way to drive growth.

The interventionist fear is based on outdated definition of monopoly. Standard Oil’s so-called “monopoly” lowered kerosene prices “from 58 to 26 cents from 1865 to 1870. Competitors disliked the company’s business practices, but consumers liked the lower prices.” https://en.wikipedia.org/wiki/Standard_Oil.

Yet, some politicians and activists want to stop this merger because they are simply afraid of change.

You can let firms experiment and innovate to figure out how to serve customers and grow, or you can let politicians protect the status quo and continue with 1% GDP.

 

Project Belle  is a website that allows licensed cosmetologists to schedule appointments with prospective clients. Instead of going to a salon, customers can have hairstylists or makeup artists come directly to their homes or businesses (Source).

The connect professionals for haircuts and styling, yoga, makeup, manicures, personal training, beauty & health.

Looks like it serves the Nashville, TN area.

 

Charles Koch:

. . . Every American’s life is now immeasurably better than it was 80 years ago.

What made these dramatic improvements possible was America’s uniquely free and open society, which has brought the country to the cusp of another explosion of life-changing innovation. But there are dangerous signs that the U.S. is turning its back on the principles that foster such advances, particularly in education, business and government. Which path will the country take?

. . .

It was once widely accepted that progress depends on people challenging and testing each other’s hypotheses. This leads to the creation of knowledge that, when shared, inspires others and spurs the innovation that moves society forward and improves lives. It is a spontaneous process that is deeply collaborative and dependent on the contributions of others. Recall Sir Isaac Newton’s statement that he achieved so much by “standing on the shoulders of giants.”

Scientific progress in seemingly disparate fields creates opportunities for fusion, which is where the greatest innovations often occur. The British writer Matt Ridley has brilliantly described this process as “ideas having sex.” Today, this creation-from-coupling is evident in, for example, the development of driverless cars, which combine advances in transportation and artificial intelligence. When seen through this prism, the opportunities for life-altering innovation are limitless.

 

Here.

That is the title given to Robert Tracinski’s piece. I would change the title of this piece to read “Obsolete Post Office Politics” because both parties are stuck in the past. President Obama’s “investment” in solar company Solyndra is no different than Governor Rick Perry’s (R-TX) state-level venture capital fund.

That is the lesson of the government’s failed experiment with solar panel maker Solyndra, which President Obama touted last year as the wave of the future, and whose technology was rendered obsolete before they even finished building their gleaming new factory backed by $600 million in federal loan guarantees. And it’s not just Solyndra.
. . .
Yet here is Barack Obama, our Post Office President, bitterly clinging to the theories of the past and doubling down his investments in failure, while new ideas and innovations pass him by. Such is the fate of anyone who presumes to place the static judgments of an entrenched bureaucracy over the rational thinking and creative efforts of free minds.

Free minds and free markets.

Here.

Thanks for all the great gadgets you brought to market and the positive, transformative effect you had on commerce and culture.  Stay well. You’ll be missed.

Here’s Felix Salmon:

It’s a sad day: only this morning I was reminiscing about my days exploring the Apple Macintosh in Palo Alto in 1984. Like much of the world right now, I’m reliving Steve Jobs’s greatest hits on YouTube, I’ve got a bit of a tear in my eye, and yet I can’t imagine how Jobs could possibly go out on a higher note than this.

Thanks, Steve.

Dan Froomkin tries to stir up hatred of people who work for, and invest in, oil companies:

A good chunk of these profits is coming right out the pockets of the American public, thanks in part to astronomical gas prices and to $4 billion to $8 billion a year in deficit-increasing tax subsidies that oil companies continue to get, long after the incentives those subsidies were designed to create ceased to make economic sense.

Rather than invest their profits in such things as product development, new facilities, hot talent or research — things that could create jobs, improve consumer offerings and accelerate alternative energy production — three of the five big oil companies are spending large amounts of that money buying back shares of their own stock.

Economics Professor Mark J. Perry has a little fun with this silly story by changing the industry and companies.

On a serious note, people who work for oil firms are investing the way Froomkin says. It’s just invisible and not headline grabbing.  It would be good to eliminate all corporate subsidies and lower the tax rate but people who think like Froomkin wanted the subsidies incentives in the first place.  That’s crony capitalism and Froomkin was for it before he was against it.

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