26 September 2011

Monday funnies

Just how bad was the government cock-up on Solyndra? Pretty bad:
That Custom-Tailored Obama Scandal You Ordered Is Finally Here
Government should not be picking winners. Government should let the market innovate (making the pie bigger) under simple rules -- distributing the pie -- that protect citizens (not jobs!)

2 comments:

Anonymous said...

Yes, big screwup for sure. Using this as an argument against any sort of innovation policy is flawed. The market can't attain efficient levels of innovation on its own due to an inability to capture spillovers. Obviously this is more severe in basic research than later-stage development, but I wish you'd been a little more nuanced.

David Zetland said...

"The market can't attain efficient levels of innovation on its own due to an inability to capture spillovers" As if the government is better? Not only is it MORE myopic (one big bet) but it's also subject to political influence and corruption.

Basic research (e.g., math and physics) is fine, but "development" (engineering) should be done outside government influence.