Business

I purposely never write about politics or religion on this blog.  It is not that I do not have my convictions, it is more that there is a time and place for such things… and I have yet to feel like the Business and Culture Blog is my proper forum.  The purpose of this blog is to address those areas of innovation, leadership, entrepreneurship, technology and community that lie at the intersection of business and culture.  Last week our House and Senate leaders approved a bill that lies at this intersection.  So, I am going to address it.

Since its inception, I have had real trouble with the economic stimulus plan – which is expected to be signed into law by our new President this week.  I think there are many good things in the package (e.g., $150B increase in spending on education), but for a bill that's ONLY goal is to stimulate the economy, I find it disturbing how many of the funds are earmarked. 

In particular, I am disturbed that very little of the money is set aside for innovation and entrepreneurship.  These have always been and always will be the chief driving forces of our economy.  Much of my legal practice is in entrepreneurial law, funding law, venture capital law and, in general, helping business clients raise capital in their route towards business success.  These businesses only grow through innovation and excellence.  These are the key factors in promoting business success... which creates jobs... which creates incomes... which creates wealth... which creates spending... which improves the economy.

For plan funds dedicated to the State level, there is no direction to the States for funds to be used to promote the economy.  Indiana is to get roughly $200M from the package – which it can spend however it wishes.  As the plan is about to be approved, local politicians and business leaders are getting in line to try to grab their portion.  Our Indiana House Speaker wants to use the money on local road projects.  One of our Senators wants to use funds to help the failing RV industry (yes, recreational vehicles).  The City of Gary wants funds to improve their airport infrastructure. 

At the Federal level, the ideas are not much better.  One group of politicians wants to use $6M to improve the Jefferson Memorial in Washington D.C.  This as part of an economic stimulus package!

Don’t get me wrong – these things are important.  But how are these the areas that will help jump start our economy?  Improving local roads, 3^rd tier city airports and recreational vehicles?  It is as if our leaders have taken off their thinking caps and forgotten this simple goal - improve our economy! 

It is innovation and entrepreneurship that promote economic growth.  As stated in a recent in Business Week article “A recovering economy does not come from ‘relief packages’ but rather from the creation of businesses, products, and services that, in turn, create jobs and fuel growth.”