Egyptian Muslim Scholars: Suicide is against God’s plan

Responding to a recent increase in self-immolation (suicide by setting oneself on fire in protest) among Muslims, Muslim scholars in Egypt spoke out (here via Jordan Times):

CAIRO — Egypt’s Al-Azhar, the most prestigious centre of religious learning in the Sunni Muslim world, said on Tuesday that Islam bans suicide for any reason.

“Sharia law states that Islam categorically forbids suicide for any reason and does not accept the separation of souls from bodies as an expression of stress, anger or protest,” said Al-Azhar’s spokesman Mohammed Rifa al-Tahtawi in a statement on state news agency MENA.

“Al-Azhar cannot comment on the cases of people who had burned themselves, as these may be suffering from a mental or psychological condition that forced them to do so,” he said.

terrorists brainwashing children, congratulating very young boy (6?) for being dressed as suicide bomber
Terrorists’ Brainwashing Children

It might seem odd to some, but the Muslim scholars are actively pushing an idea which devalues the Islamic terrorists’ main weapon, suicide bombings.  & they do so in a very definitive way.  Even though the escape hatch of narrowly aiming their critiques to only self-immolation is obvious, they still don’t speak in political terms or try to limit themselves to suicide by fire.

Instead of taking the easy path; they took the moral one and stated directly that suicide in any form is forbidden under Islam and recent attacks may well involve psychological issues.

Which interestingly enough, brings us back to the Arizona shooting debate (DA post here) where I argue that rhetoric or guns can’t cause a free and moral people to suddenly and irrationally take up arms.  Indeed by proffering so, people are ignoring the fact that America, as well as many other semi-free countries, has a culture whereby the vast majority agree that killing is not an appropriate reaction to someone else exercising their free speech (agree vocally & through our legal system).

I juxtaposed American culture against some religious fundamentalist examples.  One, the Muslim online magazine (Inspire), which in mid-2010 was still pushing for revenge against Danish media for daring to print Mohammed cartoons.  Not only pushing, but the cleric writing the article stated (paraphrased) assassinations, bombings, killings, etc, are all valid responses to religious “slander”.  Additionally, I used the recent assassination of a provincial governor in Pakistan in which clerics (500+) issued decrees that anyone caught grieving for the slain governor can be punished.

The governor’s sin?  Agreeing with the national government of Pakistan that blasphemy laws currently on the books should be repealed.

Both are examples of a different a culture where killing in response to slander or blasphemy (both forms of speech) is acceptable.  Therefore, a culture in which vitriol about the blood of patriots or having to get your pitchforks out means something entirely different than it means in America.

So much in the same way that America isn’t culturally like a lot of Pakistan when it comes to the belief that violence is a respectable tool in almost any case, neither is Egypt.  As Egypt also has a societal belief, proven in their laws and willingness to prosecute terrorists (more…)

Paul Krugman Exploits Arizona Shooting ~ More Idiocy Asserted, Still No Facts

As an update to Wednesday’s post, the idiocy continues, in this case, with Paul Krugman (here via Daily Caller):

When you heard the terrible news from Arizona, were you completely surprised? Or were you, at some level, expecting something like this atrocity to happen?

Put me in the latter category. I’ve had a sick feeling in the pit of my stomach ever since the final stages of the 2008 campaign….

 Now it’s obviously impossible to know whether Mr. Krugman was honestly surprised about the horrendous events of this past weekend or not, but it seems hard to believe that anyone who heard about the incident thought, “yep – saw that coming.”

But in the grand scheme, it really doesn’t matter whether he was truly surprised as that’s not his main point.  Before he gets there though, he has to set up the framework (article cont’d):

…And you could see, just by watching the crowds at McCain-Palin rallies, that it was ready to happen again….

That’s some prescient vision he has there.  Without any proof, without any examples, without anything at all, he can “see” what was inevitable.  Not sure why he didn’t stop it or call for the possibility as loudly as possible.  It seems like the only moral actions when you “know” violent acts committed against innocent parties is inevitable. 

Additionally, this uncanny ability of his makes one wonder if the people from Miss Cleo’s office has contacted him yet to see if he’s looking for a career change?   Or maybe the CIA would like to test his capabilities?

But I digress, extra-sensory perceptions aside, Mr. Krugman continues framing the argument using a government report (article cont’d):

The Department of Homeland Security reached the same conclusion: In April 2009 an internal report warned that right-wing extremism was on the rise, with a growing potential for violence….

Which would be interesting to note, if only it were true.  There was and is a DHS report detailing the potential for increased radicalization and recruitment due to a very unique climate, but the report itself begins with this easily comprehendible statement:

The DHS/Office of Intelligence and Analysis (I&A) has no specific information that doemstic righwing terrorists are currently planning acts of violence, but rightwing extremists may be gaining new recruits by playing on their fears about several emergent issues.

The report continues as it details what it sees as specific climate variables for which rightwing extremist groups might exploit, but noted, in the 2nd paragraph the threats which concern Mr. Krugman so much, are “largely rhetorical and have not indicated plans to carry out violent acts“.

But Mr. Krugman sees, so a potential for increased recruitment and radicalization based upon societal factors and an increase in the potential for real harm are now the same.  I doubt that’s true for most objectively viewing the same data, but I don’t think most people think like Mr. Krugman.

Nonetheless, our vaunted author continues.  With an increase in threats (real) and vandalism (possibly real, no studies, no proof offered), Mr. Krugman’s vision sees the obvious results (article cont’d):

One of these days, someone was bound to take it to the next level. And now someone has….

Who was that guy again? 

It’s true that the shooter in Arizona appears to have been mentally troubled.  But that doesn’t mean that his act can or should be treated as an isolated event, having nothing to do with the national climate….

So even though Mr. Krugman believes the shooter is likely insane, the national climate is somehow involved.  Not only involved, but (article cont’d):

…something about the current state of America has been causing far more disturbed people than before to act out their illness by threatening, or actually engaging in, political violence.

His proof?  Increased levels of violence?  Increased crime rates?  Nope.  (more…)

Healthcare & Government Threats

As most know, late last week, smaller health insurance companies sent out press releases detailing a simple fact – when mandates increase, so will premiums (via WSJ here):

…Aetna Inc., some BlueCross BlueShield plans and other smaller carriers have asked for premium increases of between 1% and 9% to pay for extra benefits required under the law, according to filings with state regulators….

To most, this might seem an obvious consequence of the legislation.  The economics and logic of these required rate increases are undeniable.  If someone, in this case the government through force of law, tells a private business that they must increase their spending, under force of law, some, if not all, of those new expenditures will be passed on to consumers (WSJ continues):

…Weeks before the election, insurance companies began telling state regulators it is those very provisions that are forcing them to increase their rates….

…Aetna, one of the nation’s largest health insurers, said the extra benefits forced it to seek rate increases for new individual plans of 5.4% to 7.4% in California and 5.5% to 6.8% in Nevada…

…Regence BlueCross BlueShield of Oregon said the cost of providing additional benefits under the health law will account on average for 3.4 percentage points of a 17.1% premium rise for a small-employer health plan…

…In Wisconsin and North Carolina, Celtic Insurance Co. says half of the 18% increase it is seeking comes from complying with health-law mandates….

Not only should this seem obvious, but in a free country, any company should be able to set their rates for their services.

This of course assumes you don’t work for the government – then the news is shocking (WSJ continues):

…The White House says insurers are using the law as an excuse to raise rates and predicts that state regulators will block some of the large increases.

“I would have real deep concerns that the kinds of rate increases that you’re quoting… are justified,” said Nancy-Ann DeParle, the White House’s top health official. She said that for insurers, raising rates was “already their modus operandi before the bill” passed. “We believe consumers will see through this,” she said….

Not only shocking – but so wrong that even more force is needed.

Enter the Department of Health and Human Services threatening private business, for making private decisions, solely because those decisions disagree with the government’s predictions (via HHS website – bold added):

It has come to my attention that several health insurer carriers are sending letters to their enrollees falsely blaming premium increases for 2011 on the patient protections in the Affordable Care Act.  I urge you to inform your members that there will be zero tolerance for this type of misinformation and unjustified rate increases….

…We estimate that that the effect will be no more than one to two percent….

…Given the importance of the new protections and the facts about their impact on costs, I ask for your help in stopping misinformation and scare tactics about the Affordable Care Act.  Moreover, I want AHIP’s members to be put on notice: the Administration, in partnership with states, will not tolerate unjustified rate hikes in the name of consumer protections….

Think carefully about some of  these words/phrases used by government officials against private businesses in a free country: zero tolerance, misinformation, not tolerate, unjustified….all for raising theirs rates at a greater rate than the government assumed.

Maybe it’s just me, but when the government threatens people for fishy emails, then moves forward to threaten private business for deciding what to charge for their services…. well, it certainly doesn’t appear to be a free society.

As Thomas Jefferson stated so many years ago:

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

Moral Markets

Over @ Concuring Opinions, Nate Oman has an interesting post about the defenses of a free market (whole thing here):

Broadly speaking, I think that there are three families of arguments that can be made in defense of markets. Most commonly within the legal academy markets are defended on the basis of efficiency….

The second defense of markets is libertarian. This looks a lot of like the efficiency argument but is actually quite different, notwithstanding the fact that libertarians frequently confuse the two. In the libertarian argument what matters is not welfare but freedom. Freedom is taken as a good in and of itself, even if choices might result in reductions of welfare for the chooser….

The third argument is a defense of markets as markets.

Both the efficiency and the libertarian defenses of markets are reductionist in the sense that they see the good of markets in a unitary way. Markets are good because — properly constructed — they move resources around to maximize welfare….

Markets are good because they provide cooperation in the face of disagreement over the definition of the good and “social stability.”…

It’s a very decent article, though as a non-card carrying libertarian, I need to disagree with some of his minor points.  Namely, that libertarians are by group interested in freedom alone.  In fact, libertarians, just like other demographic groups get to the same answers through different paths and all three paths are prevalent in the current party.

For some libertarians, it is an…. intellectual/efficiency argument alone.  They believe markets aren’t necessarily moral or perfect at rationing, but they firmly believe that a free market leads to the best possible solution for the most people.

For me, I take the freedom approach.  To maximize individual welfare means one must maximize individual choices.  This might seem as too moralistic or philosophical for some as to be practical or useful, but it seems logical that reducing one mans’ freedom is antithetical to maximizing welfare.

& to be thoroughish, lots of libertarians are just tired of all the other parties and joined that cool one with that goofy, “Who is Ron Paul” stuff.  In reality, like most organizations, libertarians are not absolutists either way using a combination of thoughts to form their basis for their beliefs, but I digress.

The author continues about the third way:

On this view, traders are not cowardly, greedy, souless parasites (see, e.g., Shylock) constantly tempting the virtuous away from the path of justice with filthy lucre. Rather, commerce encourages courage, honesty, and fidelity. It encourages cooperation rather than predation. It allows people with widely disparate views of the ultimate ends and purposes of life to peacefully cooperate with one another. Commerce rewards the frugal and the farsighted, while punishing the wastrel and the spendthrift…..

But he tells us….

The third, pluralist view of the good of markets gets scant attention…

While this maybe a true statement, but the reality is that all three defenses coexist to form both a cohesive political and philosophical framework (though I do have issues with libertarians on foreign policy).

If we can start with the idea that maximizing welfare includes maximizing freedom, efficiency, freedom, & moral markets work together.

When starting with the paramount of freedom in economics, one also gets into the land of (un)intended consequences and perverted incentives.  Hayek talked about this a great deal – the fact that due to the shear size and complexity of the market, any attempted centralized interference will change incentives and unlikely for the better.  Unlikely, because the “status quo” we all question exists through millions and millions of individual transactions.

For lack of a better term, a collective wisdom emerges, order out of chaos.  An answer, that we might not like, but something for which a centralized system is (highly) unlikely to do better than free individuals.  The result is the most efficient use of resources we can hope to achieve while maintaining the most individual freedoms we can.

What about the morals? Well….it’s not as if we don’t have recent examples to help us out.  Leaving out the current mess of a tax code, take the recent financial crisis.

Predatory lenders?  Sure.  Fraudulent and speculative borrowers? Sure.  The reason why it worked so well?  Government incentives pushed quasi-government agencies to purchase loans without much oversight.

Why no oversight?  No skin in the game.  They couldn’t fail.  The market believed it & they believed it.  & in the end, the government proved them right.  Do the wrong thing, over and over and over and over again until it finally collapses and someone else ends up paying the bill….

So while the author is probably correct that we don’t use a moral market argument much, especially in an atmosphere of language such as “fat-cats”, he’s incorrect that this moral option is a “third” argument.  It is indeed part and parcel of the framework that markets are more efficient, better at maximizing freedom, and yes, even better at incenting moral behavior as well.

More on market morals here

Infinite Monkey Theorems 20100713

Come on…. we can’t find any good justices to nominate to SCOTUS?  This is what… the third (including the previous administration) uninspired justice nominated in just 5 years.

For such a prestigious and life long appointment, we should expect much better (via Cato here):

Elena Kagan, President Obama’s nominee for the Supreme Court, seemed to shock many people when she dodged questions about the Declaration of Independence during her testimony before the Senate Judiciary Committee…

DA posts here & here

Via Freakanomics here, which will hopefully put to rest the idea that nurses go on strike to “help” patients, from the NBER paper:

…Controlling for hospital-specific heterogeneity, patient demographics and disease severity, the results show that nurses’ strikes increase in-hospital mortality by 19.4% and 30-day readmission by 6.5% for patients admitted during a strike, with little change in patient demographics, disease severity or treatment intensity….

Robert Reich via Salon.com here demonstrates once again how much politics effects his economic analysis.  According to him, this whole economic mess, including a potential backslide can be blamed solely on deregulation:

…starting in the late 1970s, and with increasing fervor over the next three decades, government did just the opposite. It deregulated and privatized. It increased the cost of public higher education and cut public transportation. It shredded safety nets…

Which he believes is causing greater wage disparities:

…We’re back to the same ominous trend as before the Great Recession: a larger and larger share of total income going to the very top while the vast middle class continues to lose ground….

Because with deregulation, of course, companies can become EVIL:

…Companies were allowed to slash jobs and wages, cut benefits and shift risks to employees (from you-can-count-on-it pensions to do-it-yourself 401(k)s, from good health coverage to soaring premiums and deductibles)….

I submit what Mr. Reich fears is freedom – freedom of business owners to hire and fire as they wish, freedom of employees to change jobs easily (401K allows this, pension does not), just freedom.

Secondarily, you can see in his writing that the only thing the government has ever done wrong, is by not getting involved enough.  He doesn’t mention government meddling, deficit spending, enormous new health care expenses, entirely new federal agencies which more money will be needed, idiotic regulations like a moratorium on all oil drilling due to one company’s failure….

Nope, for Mr. Reich, it’s all because the government hasn’t taken enough control over the little people.

Via Cato here, more news on the Obama Administration’s transparency:

The Social Security’s trustees’ annual report is, by law, supposed to be published by April 1. This year, however, the trustees have postponed its release indefinitely. The program’s financial condition continues to remain hidden from public view — and by many accounts will continue to be so until the end of the fiscal year….

Wonder if Reich views this as an issue?

Infinite Monkey Theorems 20100701

More bad news for Obama & the Democrats for 2010 elections.  Via The Atlantic here:

Chris Cillizza’s Morning Fix reports new data from Gallup showing that independents now favor a generic Republican candidate for Congress over a generic Democrat by 12 points….

& as is continually the case with this congress, more bad news for freedom.  Via The Hill here:

The 30-second campaign ad could become a thing of the past for third-party groups if the Democrats’ campaign finance legislation becomes law.

Media strategists argue the new disclosure requirements would eat into the majority of their ad time….

& while we’re talking about lack of freedom…. what might Kagan do about this “disclose” act?  Via Reason.com here:

As solicitor general of the United States, Elena Kagan argued in front of the Supreme Court that the federal government had the constitutional authority to ban certain political pamphlets. She also strongly implied that some political books, if they were partisan enough, could also be censored…..

Does is matter that she’s against free political speech?  Unlikely…. via Yahoo News here:

…Kagan’s performance in the Judiciary Committee drew praise from Democrats and compliments even from some critics, putting her on a path to confirmation by the full Senate sometime in July.

“She will be confirmed. I believe she will be confirmed,” said Republican Orrin Hatch, a member of the Judiciary Committee, predicting there would be at least some Republican support…..

& least we forgot, there’s still an oil spill…. which is being screwed up by the same government that is promising to “fix” healthcare….  Via The Heritage Foundation here, all kinds of people are offering help, but we’re still considering it:

In total, there have been 27 countries and 5 international organizations offering boom, dispersants, skimmers, vessels, bird rehabilitation equipment as well expertise. Along with the other important action items for the administration to undertake, accepting international assistance must be a more urgent priority. The Department of State has a chart that lists the equipment and expertise sitting on the sidelines with most of the status orders “under consideration.” Owners of the equipment have been rapid in their response to government queries but the equipment remains idle. It simply needs to be better….

Not to mention the economic killing impact the asinine moratorium is having:

Meanwhile, the Gulf continues to suffer. It’s not just government incompetence when it comes to the environmental cleanup; the administration’s policy decisions are making the economic harm much worse – especially the offshore drilling moratorium. Although the ban was only meant to affect those rigs operating in water 500 feet or deeper, it has led to a de facto ban on shallow water drilling….

Butler said that only one of his four drill rigs are operating; all four were drilling before the spill. Spartan has six contracts that would put his entire fleet back to work, but he can’t get going until the permits come through, he added. The week before last, Butler said he had to lay off 72 employees. Come Tuesday he’ll have to let another 140 go. “That’s 140 families, is how I look at it,” Butler said….

Not only incompetence in the clean-up, idiocy in quickly implemented, but poorly thought out regulations (DA post here), The Atlantic takes all this and poses an interesting moral question here:

In this video from Climate Desk partner Need to Know, Atlantic correspondent and oil expert Lisa Margonelli talks to Jon Meacham about halting drilling in the Gulf. She explains her view that Americans don’t have a right to drive cars and use gasoline unless we’re willing to drill for it in our own backyard….

For good news – research conducted on parents and children in reference to video games demonstrates that most parents actually don’t need government help.  Via The Technology Liberation Front (here):

  • 93% of the time parents are present at the time games are purchased or rented
  • 64% of parents believe games are a positive part of their children’s lives
  • 86% of the time children receive their parents’ permission before purchasing or renting a game
  • 48% of parents play computer and video games with their children at least weekly
  • 97% of parents report always or sometimes monitoring the games their children play
  • 76% of parents believe that the parental controls available in all new video game consoles are useful

It might be scary to those in government who are continuing to try to push more laws concerning how parents raise their children as it discounts the need for those laws, but for us normal folk – it gives us what we see everyday:

Once again, these findings illustrate that parents are parenting!

(Non)Education in America

The high school, which erupted over hurt feelings when some wore flag shirts to school on Cinco De Mayo, and then erupted further when an incompetent management structure got involved has apologized.

The statement given ignores any of the real issues.  Like all political statements, they even pretend something is true that they know isn’t.  Their school & their decisions, are anti-free speech and to pretend otherwise should be seen as the absurdity it is.  He then talks about being “proud” of the students for handling the media coverage…

You mean the ones’ who protested, to get media coverage?

…On Thursday, May 6, about 50 students, many carrying the Mexican flag, walked out of classes. The students told reporters that they thought it was disrespectful for the students to wear the American flag on their shirts while others were celebrating Cinco de Mayo….

First, what the hell were they protesting?  Maybe it’s just me, but if Joe Friday sticks by the facts it seems it went like this:

  1. Some students wore American flag t-shirts on a Mexican holiday.
  2. Some fragile students complained that they were “hurt” by this.
  3. Incompetent management then forces the students to change or go home.

For all intents and purposes, it seems the idiots protesting won the fight.

But yesterday, according to the  statement…. “they (the students) wore purple and white for solidarity”…. so all is well I suppose.

Meanwhile, you still have children who were “taught” in this “teachable” moment that they should never, ever have to be disrespected.  I’m unsure where this belief about respect has come, but I believe it’s a dangerous and intolerant belief.  I seem to recall when respect was earned, not deserved, but I digress.

It seems logically obvious that true freedom is to allow things you won’t/don’t like.  Allowing freedom actually means  (please read carefully you spoiled little brats) people are going to do things you don’t really like and there’s absolutely nothing you can or should do about it.

Additionally, on the plethora of things you should be grown up enough to deal with in a free society, speech by way of t-shirts is the least intrusive and offensive thing I can think of.  Seriously, I have what some would call a pretty dark sense of humor, and the things I can think to wear if I were to purposefully wanted to disrupt Cinco De Mayo…. well, let’s just say while it make me laugh, my imagination can lead me to t-shirts which might actually be cause for a protest (assuming the school allowed it).

In a free country, not only do we not allow the cops to arrest people simply for demonstrating their beliefs, but we also respect freedom in general.  For instance, when some comedian or cartoonist creates something satirical, yet disparaging to the Catholic Church, no one demands protests, no one demands censorship, and no one ever demands death.

Sure, people rightfully offended might debate about it, write about it, might boycott products, but they don’t close schools to protest over being disrespected.  They prefer to get their respect through their actions towards helping others, not through mob scenes.

What’s also buried in here,  is that no one (especially the “Mexican” students) seems to understand the holiday has nothing to do with Mexican independence and its history is actually a shared American/Mexican holiday for a Mexican victory of one battle over the French.  It was a hard fought victory for 4000 barely-trained Mexicans over 8000 well-trained and well-equipped French.  So the holiday was never meant to be “celebrated” exactly, as it was meant to be more like a D-Day remembrance.   (Mexican Independence day is the 16th of September)

Indeed, to be really offensive students could’ve chosen to have worn French flag t-shirts, not American flag t-shirts.

Back to the history:  It was used in early American history, mid-1800s, by Mexicans & Americans in California to tick off the French.  Now, I’m all for doing anything that irritates the French, but that obviously died out over time.  The holiday, then became almost nonexistent.

However, with money to made…. over the past 30 years or so, corporations & a willing populace have changed everything.  The remembrance, which should come from such a bloody, yet surprising victory, was turned into a holiday to sell more Mexican food, beer, and flags;  just like St. Patrick’s day might have one time had something to do with St. Patrick, but now serves only as a reason to drink green beer and buy “Kiss me I’m Irish” stuff.

My point: that looking at this from each angle seems to show the American public should be angry at one thing only.  How high school kids, in a well-funded school system, in one of the richest states in one of the richest countries in the world are so… frustratingly ignorant of their ancestral history and know nothing about even about the basic idea of freedom itself.

Big Government = Less Medical Innovation

Over @ HBR Blogs, Jeff Goldsmith asks the following question: Has the U.S. Health Technology Sector Run Out of Gas?.  Looking historically, he notes the amazing progress since the 1970s, but a decline in that growth since 2000:

…Technological innovation — in pharmaceuticals, biotechnology, medical devices including imaging, and enterprise IT — exploded in the thirty year period 1970 to 2000…

…Then about a decade ago, the US medical technology sector entered a prolonged innovation drought. In pharmaceuticals, new drug introductions declined by almost two thirds, while drugs patented in the latter part of the boom period lost protection, this despite a near tripling in R+D outlays. (New drug introductions rebounded modestly in 2008 and 2009, but still haven’t regained their 2004 levels)….

He goes further to note that this dip in activity wasn’t just about new drugs:

…The drought wasn’t confined to pharmaceuticals and biotechnology. Imaging, a dazzling success story for three decades, has seemingly run out of gas. Imaging equipment sales collapsed precipitously in the US, by roughly 40%…

…Enterprise clinical information technology seems to have hit a similar flat spot. The major commercial IT platforms for hospitals and health systems are more than a decade old.

& all of that makes complete sense based upon what we know about the last couple of decades.

Since the mid-1990s (well really, since the 1960′s), we have increased regulation on the medical industry on a constant basis.  From minor changes in who qualifies, to new regulations such as HIPA, to very large new regulatory pressures such as the Medicare Prescription Drug Benefit, resulting in an explosive growth in government expenditures of health care:

US Goverment health care expenditures from 2000-2012 (est)

There have also been additional pressures.  Increases in financial and IT regulations through SOX and other legislation have increased companies’ weariness to put themselves at risk and increased costs of doing business.

These pressures in increasing the costs of doing business, combined with the federal government expenditures crowding out private spending, has resulted in higher costs for businesses and therefore consumers as well.  The new heath care and financial overhaul bills will continue this pressure.

The big cost however is what the author notes:  the lack on innovation.  When the government seeks to consistently erect new and more costly barriers to entry, competition will naturally decline.  The correlation to that behavior is that costs will grow more rapidly as we know competition in the long-term generates downward pressure on prices.

As we see now – prices are increasing, availability is decreasing, as the government decreases the availability of future competition in industries the government tightly controls such as health care.  Conversely with those industries with fewer barriers to entry have downward pressure on prices, such as cell phone or internet providers.

While I consider this failure of centralized control as a major factor, Mr. Goldsmith posits three contributing factors, risk aversion from management, size and increasing bureaucracy, and the fact that we are losing out globally for scientific talent:

  1. Firms that used to be run by scientists and engineers are now run by attorneys and marketing executives….
  2. Their ability to foster innovation has succumbed to a bureaucratic management culture….
  3. Bright young foreign science and technology graduates are returning to India or China instead of staying here and creating new products or companies….

While I agree with all of these things, I think reasons 1 & 3 can be combined easily to a more basic point about government interference and centralized control.  Indeed they are symptoms of the problem and not necessarily the disease.

Having said that, I think it’s also important to note that reason number 2 exists due to the same thinking reasons 1 & 3 do – the belief that centralized control is a nominal good (DA post on business trends here).

The author seems remiss in not making the connection, even if he did eloquently, maybe unwittingly, stumble across it when writing about global competition:

…If they have more freedom to innovate in their home countries, that’s where they’ll go….

For as long as we continue to discuss symptoms and not the actual disease, we will continue to miss the point.