The American Economy has really only come into its own in the last 100 – 150 years. Consequently, the country does not have a great deal of experience in recognizing what does and does not work in terms of managing the economy. It is my perspective that many in the political arena are not clear as to what can stimulate the economy. Here in lies our current political debate. Does the government need to create more programs and spend more money? Or, should the government cut taxes and ease regulations on businesses the spur the economy? My answer is neither. Our economy is built upon innovation and the creation of demand. Without innovation, we have no NEW demand. Consequently, the economy slides into a battle over the redistribution of wealth. On the other hand, innovation can be created by anyone. Ultimately, people will continue to buy the things that they always purchased, but now they will see new technologies and want something new. This creates a new demand, new wealth, and redistributes money that is based on what people want and not based on an artificial and subjective assessment on financial needs. This is how you stimulate an economy. Let us not forget that the American dream has and will be built on the backs of small businesses. For decades, at least 55% of the working American population has been employed by small business. This is a signficant fact. All businesses started off small at some point, when their innovations were new. Therefore, the President is heading in the right direction when he speaks of creating green jobs and bio-technologies. This will create innovation. I’m believe in the green industries not solely because of environmental issues. I believe in them because they are good for our economy. This is the point that the GOP is missing in the conversation on green jobs.
At any rate, keep in mind, innovation is what will safe us.