Stumbling about blogs this AM took me to a new one, and I scanned the other posts the blogger had done. there was one up titled Theory: The US needs a new TVA, maybe several. I read a pretty well written discussion of why, but I don’t agree.

Below is my response, which, got me thinking about how I think the Government should and should not interact with the economy. It just kept growing, so in the current mindset of “going Green,” thought I’d reduce my blogging footprint by re-using the material…

With the very low Nationwide unemployment (and you’ll never reach zero), it’s an issue of why? to me.

Any given region may have low employment, but is that specific region ripe for a large scale project that will use federally collected dollars that will have national level impact?

I could see a major initiative for alternative energy, in that in a region (that has the resources, be it sun, water or crop waste, etc) that would be the beginning point for the work to re-engineer the power grid of the country as a reasonable idea because it, like the Interstate development, would spread out and benefit a large percentage of the population.

To take billions and funnel them into a small area, which is down on it’s luck is a misuse of my money. If an area is suffering, then it should be incentive to look ahead and get to work making a new industry to revitalize their area.

Examples include: The massive base closures after WWII, and then again the sweeping changes to the “footprint” of the military in the mid-90s. Many communities, which had made an entire living off the presence of a military base and the payroll of the servicemen, as well as the services they could provide for the base, are still doing well. Charleston, SC is a recent example. Greenville, SC is one from the 70s, Newport, RI has been there, too.

Unemployment is no where near what it was in the Depression, so why do you think it’s right for the Federal Government to move money from one area of the country to another?

I recently finished reading “Fresh Water Submarines.” While it is a book about building submarines on the surface, it is actually a great story about the Manitowoc Shipbuilding Company and how it kept itself viable from it’s formation in 1902, through the depression, into WWII, and it still a powerhouse company in the Great Lakes area. How? The owners kept their options open, they kept looking for needs in the market and leveraged their initial wooden ship building knowledge into where their was a market. They still build excellent cranes (used worldwide) and even have a major industry in food service machines, which was a track they developed because of what they had to do in building subs…they are a major supplier of vending machines, soda dispensers and chilled cabinets. Why? Because Mr. West, and his team kept looking ahead, not because the Federal Government handed them money. And…before you think it was because of the sub contracts alone, read the book and see they made about a 3% profit, and actually took on a few projects for the cost alone, because that’s what some companies did in WWII. There is a very detailed breakout of the financials of the wartime operation to support this in the book.

How much Federal funding has Apple received? Look what they have done with the industry, the employment and housing market…And Steve and Steve didn’t even do it because they were in a tough job market in CA. How about eBay? No federal funding there, but it’s gone worldwide, because one guy had an idea and coded it. The gaming software market? Yes, there maybe be some companies there (”Dangerous Waters” and “Falcon”) are two games I know got some money. the first was an unclassified version of simulator work on Navy contracts, the second, because it was so good, the USAF paid for the 2.0 version, so they could use it for initial training for their F-16 pilots.

What we need is people willing to step up and run their own businesses, and to not settle for just being employees. Hard work? Yes, but they are the one who actually drive the financial engine of this country.

Government, at any level, really has little place in the daily economics, in my opinion. They are to “provide for the common defense” role, which is law enforcement and justice, when translated within our national borders. Consumer protection would fall under that, too. When I used to live in Virginia Beach, many things were “fees.” That way, they could advertise themselves as having a low tax structure. The reality, when you added all the “fees” in, which sure felt like taxes (eg: “Storm Water Fee”), cost like taxes, were billed like taxes, were just that: Taxes for more and more and more projects.

I submit that are far more stories on how one or two people took a spark of inspiration and have created huge economic machines than there are stories of even moderately successful government conceived and funded, and, more importantly, managed projects, within our country, or outside of it. You may not like large corporations, but they once were small entities, that out maneuvered all the competition, either by end running them, or by seeing the “high ground” no one else was going for and they took it. Now everyone (who could have done the same) complains, but they shop there so as to keep more of their hard earned dollars in their own pockets.

The need for a much higher percentage of business owners is the prescription.

Anyhow, it looks like that blogger is off to a good start in the blogosphere. Jump over there and take a look.

Said xformed @ 11:05 am | Permalink   

1. Big Business uses Contract Companies to hire no U.S. personnel. The Contract Company is told to request certain information from a job seeker.
   Like the SS# (Social Security Number). The SS# is then given to the Big Business and compared to a Do Not Hire List. A person can appear on the Do Not Hire List in a positive or negative way and for any reason. If it is negative a job will not be offered. If they do not get the information they ask for you the Big Business will not offer a job. If a job seeker is found to be negative A JOB APPLICATION IS NOT filled out. The job seeker can be qualified for the job and not get it. He could be denied the job for being a U.S. citizen. The Big Business can then complain to the government saying they need H1B Visas to fill their jobs. There is no evidence that a U.S. job seeker applied for the job, because a job application was not filled out. Information Technology Contract companies hire no U.S. personnel from India. To see where these companies do business look for a large population of India people in the U.S.

   Comment by Anonymous — 1/26/2008 @ 11:49 am

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2. And just what exactly does your comment have to do with the Government sticking it’s fingers into every part of the economy? I was discussing the lack of need for a TVA like project just because an area is behind economically…

   Comment by xformed — 1/30/2008 @ 9:29 pm

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