Tuesday, January 25, 2011


From Dilbert: the unforeseen consequences of government's pro-business policies...

1 comment:

  1. It's an interesting question.

    For example, the likes of Sidney Harman who founded Harman/Kardon and is generally to the fore of US business, would be a great proponent of government industrial strategising and an advocate for national industry policy and corresponding tax incentives etc.

    But then you see the results of our own government's 'industrial strategising' wrt the FIRE economy!!! And we are still on the edge of our seats waiting for the results of their 'industrial strategising' wrt the so called knowledge economy and green economy... God save us.

    No doubt, the ideal of doing away with such industrial strategising is as Michael Polanyi put it, "People freely making their own choice of problems and pursuing them in the light of their own personal judgment... co-operating as members of a closely knit organization. ... Such self-co-ordination of independent initiatives leads to a joint result which is unpremeditated by any of those who bring it about... Any attempt to organize the group ... under a single authority would eliminate their independent initiatives and thus reduce their joint effectiveness to that of the single person directing them from the centre. It would, in effect, paralyse their cooperation..."

    Do we need this direction from the centre? Perhaps not if we want to innovate and create goods and services that are of great value. But, personally, I think we really do need it at our current stage of social development with respect to protecting our community life, craft standards, forests, rivers, arts, and in general the innumerable forms of private and public life, etc... (that do not affect profits etc), from the vagaries, and frequent myopia, and indeed unbridled greed and stupidity, of laissez faire and market economy in its current form.


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