Economy

What You Need To Know

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China’s government-dominated economy has a lot of Washington politicians wanting to imitate Beijing. Typical is Senator Mark Warner (D–VA): “I’ve been impressed with the Chinese model.” 

This segment of What’s Ahead exposes the folly of such thinking. The U.S. has consistently been at the forefront of invention and innovation because of our free-market economy. Government-dominated economies ultimately flop at fostering creativity because they can’t foresee the future when it comes to new technologies and their often surprising applications.

The U.S.’ record in playing the government-knows-best game has hardly been stellar, from supersonic airliners to fast-breeder reactors to environmentally harmful corn-based ethanol. Yet the Senate has passed a $250 billion boondoggle bill dubbed The U.S. Innovation and Competition Act.

Among the new bureaucracies this bill will create is one called The Office of Manufacturing and Industrial Innovation Policy to create a National Strategic Plan “to identify short-term, medium-term and long-term needs.”

You can’t make this stuff up.

And the bill allocates $52 billion in direct subsidies for new semiconductor fabrication plants. Already the politicians are dictating where these new facilities must be located.

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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.

Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,

Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.

Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.

Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.

Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional).

Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.

In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.

Read more at www.forbes.com

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