Competition and Innovation
In response to today's Thomas Friedman column, I sent this letter to the Houston Chronicle:
re: "The American Capacity to Innovate Is Steadily Eroding"
Thomas Friedman is correct in at least part of his central thesis: innovation is central to economic prosperity. Unfortunately, Friedman continues to advocate increasing government regulation of the economy; such intrusion has a negative impact on innovation. It is competition in the free market that spurs innovation, not government regulation or research grants. Rather than increasing the size and scope of government, a better way to promote innovation and economic growth is to decrease government. Lower taxes on capital investment and, yes, on profits unleash the private sector, promoting an atmosphere conducive to capitalism's creativity. The government does not have any special expertise at promoting which areas of investment provide the best returns, and government subsidies and grants promote giveaways to special interests at taxpayer expense.
Sincerely,
Dave Smith




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