When To Bail On Bailing Out.

The article quoted on one of my other blogs;

Schmupeter argued that this was an essential strength of the American economy: economic destruction breeds creative success. From The Library of Economics and Liberty:

Schumpeter was among the first to lay out a clear concept of entrepreneurship. He distinguished inventions from the entrepreneur’s innovations.

Schumpeter pointed out that entrepreneurs innovate not just by figuring out how to use inventions, but also by introducing new means of production, new products, and new forms of organization. These innovations, he argued, take just as much skill and daring as does the process of invention.

Innovation by the entrepreneur, argued Schumpeter, leads to gales of “creative destruction” as innovations cause old inventories, ideas, technologies, skills, and equipment to become obsolete.

NavigatingVenture.com/Entrepreneurial-Silver-Lining-In-TodaysClouds

I agree, and I have already amplified this unique viewpoint and perspective.

The Diverse Forces of Capitalism Itself is What Has Created the Current Global Economic Collapse, however it is the current processes by which the US government in particular exercises in its "selective aid' by way of tax breaks, bailouts and/or other such incentives, to industries or financial companies which perhaps should have gone under.

When the US government as an entity views; lets say certain US auto manufacturers, for example, as important infrastructure for a healthy US economy solely because they are employers;

"regardless of weather or not their products are; well designed, economical to own and operate, or competitive with other products manufactured elsewhere that are perhaps of better quality, at lower costs to own and operate"

I use this example to illustrate a point, not necessarily stating that specific companies in the US auto industry should not have been bailed out. Rather I use this example to point a very important "missed opportunity" on the part of the US government.

If the US Government was actually going to respond to a privately held company's request for a bailout (a move towards socialism) it should have attached the kind of purse strings effectively guaranteeing that this public expendenture of funds would be successful, or at least move the nation into a more sustainable product, such electric cars that would run without using gasoline as its primary fuel source.


Stephen C. Sanders, first draft of a longer upcoming article.