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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Don Earl who wrote (99651)11/12/2008 9:11:09 AM
From: Hawkmoon1 Recommendation  Read Replies (2) of 110194
 
The light bulb, the cotton gin, the airplane, the automobile and too many others to name were decidedly not government projects.

Yes... but it required government funding for the requisite infrastructure to fully utilize those inventions. Power grid (battle between Edison's DC grid, and Tesla's AC proposal immediately comes to mind), military and postal use of aircraft which advanced the technology and trained the pilots..

And Eli Whitney's greatest contribution was not only the cotton gin, but interchangeable parts that ushered in mass production. Of course, this was financed by a "socialist" government contract and he stole someone else's idea and made it practical.

The sad part about Eli Whitney is that he was forced to spend most of his profits defending his cotton gin patent from infridgement, as people copied his design to avoid paying for his services. (Predatory Capitalism?) Was it justice for infringing upon De Gribeau's idea?

en.wikipedia.org

en.wikipedia.org

And the Wright Brothers were merely the first to make the first practical controlled flight. There were many otehrs who flew previously, but in an uncontrolled manner. The Wright's were the first to introduce pratical control surfaces.

en.wikipedia.org

But look at the modern airline industry. It was heavily subsidized by the government to serve their cargo purposes (primarily mail service), as well as military applications. There simply was little private market inducement to build military aircraft without government contracts. And 2 engine bombers led to 2/3 engine passenger/cargo aircraft, then to 4 engine aircraft.. and ultimately to jet engine aircraft.

These were inventions that were all driven by the needs of the government, which was the only entity with the requirement and the financial means necessary to justify the cost.

The internet came out of the need for the government to have secure communications that could survive a nuclear conflict. It was created by DARPA, a government research agency. Within that framework private innovation, often financed by gov't contracts have provided a totally new business model and advanced the sharing of information in an incredible fashion.

Thus, even with private innovation, there is a need for "socialized" public financing of innovation.

The partnership is not unhealthy, so long as government involvement does not overwhelm and stifle private use of new innovations. And probably one example of this stifling is the space program, where private industry (financed by deep pocketed investors like Branson) are attempting to create a private space market. But it's difficult when government funded space programs, like the shuttle, create unfair competition for services.


Today, the American auto industry is on the verge of bankruptcy because the quality has been so far compromised, it is unable to compete with Japanese products.

While "planned obsolescence" was more of an issue in the past, which gave the Japanese their edge (as they followed the teachings of Charles Deming and TQM), I think the trend has definitely changed for the better. Quality of American products in the auto industry has drastically improved. My father purchased a Chevy Silverado 4x4 ('84) and managed to get 250,000 miles out of with only a minor carburaetor repair and normal maintenance. He then sold it to this kid who worked for him and it went another 100K before the kid wrecked it). That's pretty good quality in my book.

In the past 4 decades, America has changed from an energetic nation full of hope for the future, to an oppressed people, groveling in despair.

Well, I think that most of this has to do with political culture, as well as the media. It seems that the news and political industry makes a fortune in telling us how wrong things are, and how good it used to be "the good old days". Maybe it's because our expectations have run beyond what is warranted, or deliverable..

We all have a "herd" instinct and a desire to have someone inspire us. I guess that's why Obama was voted in on the basis of some undefined "change" that he promises to bring. I just hope he's going to lead us to the "promised land" and not over a cliff like a pack of Lemmings.

Hawk
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