From: utzoo!dciem!mmt
Newsgroups: net.politics
Title: Re: Roots are still rotten
Article-I.D.: dciem.196
Posted: Sat Feb 26 19:22:27 1983
Received: Sat Feb 26 19:40:31 1983
References: houti.218

Various contributors to this quasi-religious discussion suggest that
we look at the results of capitalism and socialism. Perhaps it would
be a good idea to do that, in respect of countries where the two kinds
of government alternate. From my reading of the situation, Conservatives
get in, ruin the economy, and then lose an election to the Socialists,
who are shot at by all the businessmen until they sort out the economy
and are then replaced by the Conservatives at an election, to start
the cycle over again.
   More seriously, there are many overriding factors beyond type of
government that determine a country's economic health. Fifty percent
of the variance is determined by the amount of money invested in research,
for example. That means that all other factors COMBINED cannot have any
greater effect than the amount invested in research. Why was the US so
successful after WWII? I guess it was not because of Capitalism, but because
of all the scientists evicted from Europe by Hitler, or who came to assist
in the research effort against Hitler. Why is the US now declining? Because
Nixon started to cut back on research funding, and Carter was unable to
bring it back up as he had proposed. What will happen now? Abrupt decline
because Reagan is cutting back even more. It isn't Capitalism. There is
no real incentive for a small company to invest in research, because no-one
knows where the real benefits will appear. The more basic the research,
the longer the gamble and the more dramatic the results when it pans out.
Government has to support basic research, large companies can afford
mission-oriented research, and small companies can afford development.
Of course, small companies that do buck the odds successfully and win
from basic research get to be big companies quite quickly, but they were
probably naive and lucky. Basic research benefits us all. Development
benefits whoever does it.
		Martin Taylor