Blog Stupid

This question was asked by Barack Obama 9 days ago on LinkedIn regarding Government Services. A friend gave this answer:

Look to what has worked in the past to make America the most competitive country on the planet, and also look at what has stifled that competition. In general, when you bet on the imagination, drive, and determination of the American people, you win. They find and fix problems before government is even slightly aware of them. They outpace government actions at every turn. The free market has also made America the economic and competitive powerhouse that it is. In general, it too outpaces government in almost every respect. So, look to enhance the ability for the people and the market to do what they do best.

The best way, in the past, for the government to do this is simply to get out of the way as much as it can. That means less interference, less regulation, and less taxation across the board. You want better healh care? Take out the middleman that interferes with the market working, don't insert another 800 lb gorilla. When people have to pay for services, the cost of the services plummet. Encourage the widespread adoption of low-cost catastrophic health care insurance, and the reduction of low-level insurance. Get the patients and doctors in direct financial contact and medical costs will drop hugely. Put a cap on court awards and it will drop again. The government can then pay for those who can not pay for themselves (NOT with 'insurance' though) Generally speaking, giving people more choices is generally better than removing them. More educational choices is almost universally a good thing. It gives the country as a whole a more diverse educational experience and makes us more competitive.

Don't abhor profit. Profit is the engine that fuels research and development, jobs, and competition. Exxon/Mobil made a lot of it - but they also put out a LOT of money to get it - and putting out 130 billion to make 11 billion is not a 'windfall' by any measure. That 11 billion will hire more people, explore for more resources, and generally do good things. Also, taxing the evil corporations only raises prices for the CONSUMERS - you and me.

Reward R&D - and I do mean reward. 103% tax credit for pure research, 101% for development. You want to see change and innovation - make it worth making some mistakes. Drill Here Now. IF in the early 80's we had expanded our nuclear and domestic oil programs, we would not be in this situation today. IF we do it now, we will not be in this situation in the future. 5 years is a blink of an eye. DO IT. Continue to research alternatives too - energy is our lifeblood.

Understand economics and use it to our advantage. Using oil (above) as an example, if the supply is stable and demand goes up, so will prices. Standard econ101 stuff. But speculators who BET on the price of oil look at many other factors, chiefly stability of supply and demand. Much oil comes from the middle east - not exactly stable. If the US Congress told the domestic oil companies TODAY that they could drill the OCS or ANWR or the harvest Rocky [Mountain] shale - the speculators would see stability of supply (America is pretty darn stable!) and the futures price of oil will drop immediately.

You have to really UNDERSTAND economics to use it to our advantage and compete with those who do understand it. Get us back in the space business. With a overall ROI of more than 5100%, you really can't beat it. There's He3 on the lunar surface, and it's the next oil if we have the will to go get it and use it. Plus we will learn even more.

Do not try to get into social engineering - it always fails and ends up being discriminatory in practice. For example, prohibition. Depend on real science - science that is peer-reviewed, challenged, argued, and debated. Any one who says "The science is settled" is usually 100% wrong. For example, the science isn't settled on GRAVITY. It certainly isn't on global warming. Making policy based on bad science is anti-competitve almost by definition.

[Nicely put.]