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Government’s Presence In The 21st Century
by Amal | on June 1, 2012
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Government’s Presence In The 21st
Century
Does government have a role in the 21st century? Go Daddy!
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2. By Chrystia Freeland (editor of Thomson Reuters Digital, Reuters.com)
The big economic question in much of the world today is usually framed as the fight between
advocates of austerity and advocates of growth. But another way to view the debate is as a
contest between those who think that 21st-century government can be effective and those
who don’t.
Indeed, some of America’s most outspoken capitalists have begun to fight the “Buffett Rule,”
which would set a minimum tax level for millionaires, and other calls to raise taxes for those at
the very top, with the argument that money is best left in the bank accounts of the superrich
because they are more effective at using it than the state is.
“I’m a job creator. I’m one of the guys who can help us out. I’m a Silicon Valley guy who can
invent and create,” T.J. Rodgers, chief executive of Cypress Semiconductor, told me. “If you tax
me more, I will either give less to charity or I will fund venture companies less, or I will sell the Posts
stock in my own company or other companies I own, like Intel and Google. I will do one of those
three things to return the money to the government.” Look Who’s Telling Big Brother Enough Is
If that were to happen, Rodgers told me, the economy would be hurt, because he is better at Enough
investing money than government bureaucrats are.
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“The money will go into cash for clunkers or another program. And somehow we’re supposed to Only For The Wealthy..
believe that taking money from the investments, my investments, out of Silicon Valley, where
they have been very, very good for the economy, and putting them into cash for clunkers, or
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the new scheme, whatever it is, is somehow going to make America’s economy better,” he said.
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“It’s just wrong. It’s going to hurt the people that they’re pandering to. It’s going to hurt the
very people that think if we vote for this, then we’ll get more money. What will happen is the
economy that they depend on will be less robust and they’ll be in worse shape.” “Cash for Online Shopping, Its Advantages And Why
It’s Become So Popular
clunkers” is a term for a U.S. government program in 2009 that provided rebates to those who
traded in older, fuel-guzzling cars for more efficient models.
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Edward Conard, a former partner at Bain Capital, the buyout firm once led by Mitt Romney, the The Internet While At Home
Republican presidential candidate, makes the same point in Unintended Consequences, a book
published this month. Conard, like Rodgers, argues that society overall benefits when the rich
are taxed lightly because the rich – by virtue of their wealth – have shown they are the best
investors of capital.
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As Conard writes: “For every dollar earned by a successful innovator or lucky risk taker, society
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captures forty cents of investment. Were society to pay the incremental dollar of income to a
middle-class consumer, he would charge society ninety to ninety-nine cents of consumption for
every penny of investment – a steep price. It’s cheaper for society to allocate income to the start now
rich.”
There’s a lot to unpack in this line of reasoning. For one thing, it is hard to escape the obvious
self-interest – it is certainly convenient to believe that low taxes for oneself not only are a
personal boon but also serve the collective good. The debate is also ideological. The right has
long been campaigning to reduce the power of the state and to increase the power of the
individual.
One reason for that gap may be that while our private and business lives have been transformed
by the technology revolution, government largely has not.
“Just as technologies are disrupting industries – retail or publishing or whatever – technologies
can also disrupt the way you do government,” Nilekani told me. “The thing is that we don’t yet
know how to do it well.”
“If you have grown up using a tablet or a smartphone, with nice user interfaces, and one click,
you get everything, you get maps everywhere, you’re used to a certain level of responsiveness
and efficiency,” Nilekani explained. Government is often not very good at delivering either, he
said, which can make us more frustrated as citizens than we are as consumers.
Nilekani thinks this transformation of the state is one of the world’s most urgent challenges
because he believes that without a powerful and effective government, private entrepreneurship
is impossible.
“I think innovation is something best done effectively in the private sector,” he told me. “But it’s
the role of governments to create public goods which are platforms for innovation. If you look
at the U.S., the Internet was a government defense program on which today you have this
huge innovation ecosystem. GPS is another example.” That system “was designed for military
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3. applications. But today it’s used for maps or car navigating systems or whatever. So the ideal is
to create these global public goods or these national public goods that are platforms. And then
make them open so that people can innovate.”
That’s an important paradigm shift. Instead of arguing over whether to shrink the state or
expand it, or whether money is better spent by the private sector or by the state, maybe we
should be focusing more on reinventing the state for the 21st century.
Is This A Scare Tactic By The Rich?
Trying to be as educated and responsible as possible when it comes to responding or even
forming a opinion on subjects like this, but the comments made by the wealthy seem to always
come off as scare tactics. There is a constant theme being preached if taxes on the rich are
increased.
How about bettering the educational systems, provide better resources and assist with the most
modern up to date technology through out all communities and I’m sure many more innovators
would be produced. Use some of the riches to help those not as fortunate which would decrease
the most common problems plaguing this country today.
Stop with the vale threats, pay the taxes or donate more money (as if the tax benefits from
donations won’t be amended to capitulate to the rich anyway) and play a role in bringing
fairness and equality.
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About The Author: Amal
A former latchkey kid leading to being INDEPENDENT, self-reliant, DEDICATED
follow er in my belief, FATHER of 3 men, HUSBAND, somew hat EDUCATED, filled
w ith HOPE, GRATEFUL for life, HUNGRY for SUCCESS, alw ays w illing to give a
helping hand, community facilitator, school board member, experienced in various
industries, ENTREPRENEUR and a MAN STILL ON THE GRIND.
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