Government Is A Premier Entrepreneur

Teamwork of businesspeople work together and combine pieces of gears. Partnership and integration concept

I know that there are many out there that still believe that “government is the problem”, but I will again try to convince you that without our government many of the things that we deem essential today would like not have happened. If that argument won’t appease you, then I will try to convince you that government is where the “people’s business” has to happen. How’s that for an ambitions post? 🥸

Many of the innovations of today would not have happened without an alliance between the public-sector funding and private-sector ingenuity. Let me give you some examples. The current primary example is the Covid-19 vaccine which will soon put this pandemic to rest was a result of government/private sector cooperation. Another example is climate change. Climate change is simply too big for any country, let alone a private-sector company to be able to fully address. It will likely take more of an effort than we have yet seen in this world up to now.

Many of the biggest technological breakthroughs in American history have not sprung from the private sector. They have instead been the result of collaboration between private companies and the federal government. An example of that is the Internet. It started out as a Defense Department project. But that is not all, transistors, jet planes, satellites, artificial limbs started out in government R&D labs and moved into the private sector. How would we live without those advances now.

M.I.T. economists Jonathan Gruber and Simon Johnson point out in their recent book, “Jump-Starting America” said “Almost everything about your computer today — and the way you use it stems from government funding at the early stages.” The reason is because for profit companies in general just don’t fund research without a clear product in mind.

One of the things that has slowed incorporating all our advances in medicine and technology throughout the world is that there are almost 200 different independent governments who are only very loosely attached. Yeah, I know that the United Nations was supposed to provide a common link between us, but it is just too bogged down with unnecessary baggage to accomplish even the simplest things.

I suspect that most people don’t remember that the US started out with the Articles of Confederation (1777- 1781) which was a very loose connection between the 13 colonies, kind of like a United Nations. As the Revolution dragged on it became obvious that the ragtag alliance was not going to allow us to win our independence. In 1781, a more tightly formed alliance was formed but even that, within a decade, proved lacking. Finally, in 1789 we formed a Federal government and that has existed since.

If we as a world don’t kill ourselves off before then, there will eventually be one government for the world. When that happens it will finally provide that “common bond” that is needed to solve worldwide problems. The way that will happen is a strong government/private sector alliance to look at things from a worldwide view.