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Showing posts from October, 2012

Sandy: More Broken Windows

And now we see the Broken Windows Fallacy taken to an extreme — on CNBC of all websites.

Damage From Sandy? What About Potential Economic Boost? - Asia Business News - CNBC
The positive multiplier effect of reconstruction after Sandy could be as much as five times, according to Frank Holmes, CEO and CIO of money manager U.S. Global Investors. If the cost of the damages comes up to $20 billion, the economic boost in terms of spending and activity could be $100 billion, he said. Hurricane Sandy might appear to create economic activity, but such activity is not going to have the multiplier effect some theorize. At least, not based on the experiences of previous disasters. By this twisted logic, the horrible events of Sept. 11, 2001, should have been an economic boost: buildings and transit lines had to be rebuilt. Instead, the economic effects linger for many families and businesses.

Sandy is just one more thing New York and New Jersey didn't need.

There are many, many problems with v…

Entrepreneurs Do Create… and Create Jobs

I am a "serial entrepreneur" by nature. As early as junior high, I was trying to sell my services as a computer tech and programmer. I also knew I wanted to sell my creative writing. Business fascinated me — I tracked the stock market, the precious metals, and the general commodities when I was in the fifth grade.

Not everyone is an entrepreneur; I understand that. Unfortunately, many people don't seem to understand what motivates entrepreneurs and how we help economies and society overall. On an older blog post, the following comment was recently posted:
So instead of viewing him [the entrepreneur] as a 'job creator', he's just another consumer. He may consume other peoples' labor (time/skill/effort) in creating a corporation to earn him profits, but he's not a job creator. The market demand creates jobs. Not entrepreneurs. Entrepreneurs just chase demand and buy labor in order to earn even more revenue and make profit. Entrepreneurs do not create …