6/17/2010

U.S. Blows It Again

Is it any wonder 'green' jobs haven't been created here?

With the US government spending far too much time trying to kill off traditional energy sources, they really haven't spent nearly as much time trying to promote production of green energy sources as they should. Could that be why a lot of potential American energy jobs have been heading to China instead?

It seems any time there are alternative energy projects that actually look like they may actually work as advertised, the government wants nothing to do with it, or worse, works to kill them. But they'll sink tons of money into questionable projects with little chance of return on investment, or that will require endless government subsidies to survive.

Despite the ABC report above that the government of China controls the economy from top to bottom, meaning they can make offers others can't, the reality is quite different.

According to report from Cornell University, China's free enterprise economy works from the bottom up.

Entrepreneurship is taking off in China and with little input from the government, reports a new Cornell study. It is the capitalism of the private sector -- not government -- that is powering China's huge economy, say the researchers, making the rise of capitalism in China very similar to the West's.

"The surprising finding is how little government actually is needed to enable entrepreneurial activities," said Victor Nee, Goldwin Smith professor of sociology and director of the Center for the Study of Economy and Society at Cornell, who led the study. "Where markets rule, profit opportunities naturally draw in new entrepreneurs, no matter how adverse the institutional environment may be initially. Once a critical mass of private firms operates in specific niches, social norms and networks fulfill many of the functions that textbook economics assigns to government and legal institutions."

So ABC says one thing, and a study from Cornell says just the opposite. Who am I willing to believe?

Cornell, of course.

Chinese entrepreneurship is echoing that of the US long ago. Entrepreneurship is an endangered species here in America, seeing that the government doesn't appear interested in keeping US innovation, ideas, and inventions here where they can create new jobs, if not entirely new industries. We are indeed becoming far too much like Europe, where the government has taken control of many aspects of the economy. They stifle innovation, either by making financing new ventures more difficult or less profitable, or burying them under an avalanche of regulations that all but prohibit new economic activity unless the government can exercise control over every aspect of it.

Is it any wonder US companies are finding China far more receptive to new ideas and new technologies than the US?