Academic

STRANGLING INNOVATION WITH RED TAPE: As a Democrat whose politics are undeniably liberal on socia?

By Glenn Reynolds

STRANGLING INNOVATION WITH RED TAPE:

As a Democrat whose politics are undeniably liberal on social issues, I lamented the outcome of the midterm elections. But as an entrepreneur with two software start-ups under my belt, I couldn’t help but celebrate – and more than a little. As the fall campaigns wore on, I had found myself listening closely to the Tea Party, nursing the hope that its message would push both major parties to change the way they do business.

To understand my motivation, pick up the November issue of Washingtonian magazine. The annual Salary Survey notes on Page 81 that top trade association leaders (industry lobbyists) make multimillion-dollar salaries to “keep tabs on what the federal government was doing or might do.”

These outsize earnings are symptomatic of a disease that is slowly killing the American economy. We are creating so much regulation – over tax policy, health care, financial activity – that smart people have figured out that they can get rich faster and more easily by manipulating rules on behalf of existing corporations than by creating net new activity and wealth. Gamesmanship pays better than entrepreneurship.

This will always be true as the government grows more powerful. The solution is obvious, but the government — and those who get rich by manipulating it — are unlikely to be persuaded.

UPDATE: As the economy continues to tank, blaming hoarders and wreckers. Boy, I never saw that one coming . . .

Full post as published by Instapundit.com on November 20, 2010 (boomark / email).