Comments on: Government Innovation http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/ The Diatribes of a Laissez-Faire Individual Mon, 06 Sep 2010 05:43:54 +0000 http://wordpress.org/?v=2.2.1 By: Geoff http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-113 Geoff Tue, 21 Jul 2009 18:51:18 +0000 http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-113 I heard Timberlake's Tequilla was invented by the government with the cooperation of the FDA. In either case, I'll drink it like a son of a gun. I heard Timberlake’s Tequilla was invented by the government with the cooperation of the FDA. In either case, I’ll drink it like a son of a gun.

]]> By: Erica http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-112 Erica Tue, 21 Jul 2009 18:19:33 +0000 http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-112 I say we drink to that in 3 weeks time... I will be bringing an example of private innovation in the form of Justin Timberlakes new tequilla 901...and then we will use it for the greater good of society in WVA :) I say we drink to that in 3 weeks time… I will be bringing an example of private innovation in the form of Justin Timberlakes new tequilla 901…and then we will use it for the greater good of society in WVA :)

]]> By: Geoff http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-111 Geoff Tue, 21 Jul 2009 18:13:42 +0000 http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-111 I agree with you about GM and about a lot of things Drew says. The second comment is an example, not a fact, although the US government had a large role in developing the flu vaccine through the military with further advances later on in the private sector. Furthermore, as I understand it the CDC is spearheading the swine flu vaccine so the example isn't so far off. I also didn't mention insurance at all. It's an example of an externality...a case in which private markets are inefficient on their own. My general point is that I feel like too often the thinking is just "government bad...private good." In general, I agree with this. There are always exceptions that are important to recognize. I agree with you about GM and about a lot of things Drew says.

The second comment is an example, not a fact, although the US government had a large role in developing the flu vaccine through the military with further advances later on in the private sector. Furthermore, as I understand it the CDC is spearheading the swine flu vaccine so the example isn’t so far off. I also didn’t mention insurance at all.

It’s an example of an externality…a case in which private markets are inefficient on their own.

My general point is that I feel like too often the thinking is just “government bad…private good.” In general, I agree with this. There are always exceptions that are important to recognize.

]]> By: Erica http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-110 Erica Tue, 21 Jul 2009 17:56:15 +0000 http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-110 -would a market exist for them if there wasnt a govenrment?- i don't know, the government is their market- NASA specifically, yes it is innovative, but it doesnt earn money and it doesnt do anyone any good to walk on the moon just because we can, so i would think no- there wouldnt be a market for it since it is useless...its progress, but useless. and govt is the only entity that would spend money on something useless that I know of As for military based innovation, governement should spend money on this as its a constitutional obligation of the fed govt to support and build up a military and defense for the nation- and a private company helps with that innitiative I am not sure what you meant by your second comment Geoff...i know at my company, they pay for its employees to get a flu shot every year which works with both private insurance and the provate company-no govt at all- and as far as I know, most vaccinations and medicinal drugs are created by and paid for private research pharmicutical companies. I think Andrews point is there are some research industries that are better suited without the government- i believe its most all industries personally, but as for GM thats a definite. There is no motivation to compete with other car companies like Honda or Ford, when you dont have the strain of worrying about losing your business, which obviously GM wont b/c of constant bailouts. Their cars will always be sub-par to those companies that have to make a profit, and they will NEVER be able to re-pay the American people because they will never be able to sell as many cars to do that because of that very reason. -would a market exist for them if there wasnt a govenrment?- i don’t know, the government is their market- NASA specifically, yes it is innovative, but it doesnt earn money and it doesnt do anyone any good to walk on the moon just because we can, so i would think no- there wouldnt be a market for it since it is useless…its progress, but useless. and govt is the only entity that would spend money on something useless that I know of
As for military based innovation, governement should spend money on this as its a constitutional obligation of the fed govt to support and build up a military and defense for the nation- and a private company helps with that innitiative

I am not sure what you meant by your second comment Geoff…i know at my company, they pay for its employees to get a flu shot every year which works with both private insurance and the provate company-no govt at all- and as far as I know, most vaccinations and medicinal drugs are created by and paid for private research pharmicutical companies.

I think Andrews point is there are some research industries that are better suited without the government- i believe its most all industries personally, but as for GM thats a definite. There is no motivation to compete with other car companies like Honda or Ford, when you dont have the strain of worrying about losing your business, which obviously GM wont b/c of constant bailouts. Their cars will always be sub-par to those companies that have to make a profit, and they will NEVER be able to re-pay the American people because they will never be able to sell as many cars to do that because of that very reason.

]]> By: Geoff http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-109 Geoff Tue, 21 Jul 2009 17:14:11 +0000 http://wheredidmycapitalismgo.com/2009/07/12/government-innovation/#comment-109 Sorry, 1,000 patents. Either way the point remains. I think the whole "Hands Off" argument fundamentally ignores the fact that some research may not be as beneficial to any private firm as it is to the society as a whole. Inventing a flu vaccine not only prevents the flu for individuals who take and pay for the vaccine, but also prevents its spread. Preventing the spread of the flu is not something the firm will internalize, but the government might. Thus, the government may pay for the beneficial vaccine to be developed when it would not have been developed without the government. Sorry, 1,000 patents. Either way the point remains.

I think the whole “Hands Off” argument fundamentally ignores the fact that some research may not be as beneficial to any private firm as it is to the society as a whole. Inventing a flu vaccine not only prevents the flu for individuals who take and pay for the vaccine, but also prevents its spread. Preventing the spread of the flu is not something the firm will internalize, but the government might. Thus, the government may pay for the beneficial vaccine to be developed when it would not have been developed without the government.

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