State of Innovation

Patents and Innovation Economics

Another Study Shows How Far the U.S. Has Fallen

Forbes magazine released its ranking of the best countries in which to do business.  The U.S. fell a spot to tenth on the list.  Canada jumped three spots to first place.  This is another list confirming that the U.S. is slipping economically because of the policies that it is pursuing.  Another recent list ranked the U.S. tenth in economic freedom.  The answers to our economic problems are not too complex to understand, it is easy to define which policies further economic freedom and individual rights and which do not.  The Obama and Bush administrations both moved us away from freedom and toward socialism (more accurately Fascism).  Both administrations introduced the largest, most expensive entitlement programs during their administration since Lyndon Johnson and Medicare.  They did this at a time when both knew that Medicare and Social Security were bankrupt actuarially.  Even Obama knew it was a LIE that Obamacare would save money – that was never his intention.  His intention was to move the U.S. towards his socialist vision and he stated this clearly if you listened to what he has said throughout his life,  not just the sound bites when he was pushing Obamacare.

Here are specific policies that we need to enact in order to avoid a financial collapse of the West.

 

1) Rationalize our tax system

We need a tax system designed to raise revenue as efficiently as possible.  A flat tax or a sales tax both fit the bill.  Any tax system should only be on earnings or spending and not on capital gains and estate taxes.  Our tax system is a national disgrace

2) Regulatory Bill of Rights

Our Bill of Rights has been completely circumvented by the regulatory state.  It is not enough to just roll back regulations, we need a real check and balance on the Regulatory state.  I have proposed such a system in my post Regulatory Bill of Rights.

 

3) Cut Government Spending and limit total government spending to no more that 15% of GDP.

The evidence is overwhelming that government spending destroys both the economy and our individual rights.  See Austerity: Why it is Key to Both Our Short Term and Long Term Economic Growth.  This means that we have to reform Social Security and Medicare and turn them into a private saving program.  Obviously, this will take time and the transition has to be fair to today’s seniors and in the long term should phase out these unconstitutional programs.

 

4) Strengthen Our Patent Rights and All Property Rights

Patents are the most important property right for economic growth.  We need patent offices that issues patents in under a year, courts that understand patent laws and protect the property rights of inventors, and we need patent rights to extend across national borders like copyrights do.  It goes without saying we need to repeal the AIA and the publication rule.

It is no coincidence that when patent rights are under attack then so are all other property rights.  This was true in 1970s, the 1930s and in every country that has limited property rights.

 

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October 11, 2011 - Posted by | -Economics | , ,

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