Evidently having learned nothing from the inept government and Federal Reserve, leaders of Alcoa (NYSE:AA), Google (Nasdaq:GOOG) and Coca-Cola (NYSE:KO) have all called for even more spending as a solution to the difficult job market, as if more and larger government is the answer to the problem, rather than being a large part of the problem.
The usual idea of throwing more money at education and innovation is looked upon as the answer. The problem is the quality and focus of education, not a lack of money. For innovation, what they mean there is research and development, which has absolutely nothing to do with the purpose of government or even the ability of the government to determine what is needed best.
These companies need to start looking for market solutions and the creativity that has made America so prosperous, not going with their hat in hand begging for government handouts, which means more deficits or higher taxes.
The trillions already spent show there is no correlation between government spending and economic success. Most times the money is wrongly used and the result is redistribution to very poor projects, which ends up with money spent and nothing to show for it.
Alcoa's CEO Klaus Kleinfeld rightly noted, “America and the American dream are still very much alive. The foundation is there. Currently we have a scientific revolution going on like we have not seen before.”
His problem is he doesn't see his schizophrenia in relationship to how that has anything to do with entrepreneurship and the government.
There is no need to throw taxpayers' money at the private sector, that's why it's called the private sector. Great companies like Wal-Mart rise above the need for government and develop their own answers to challenges and needs. That's what has made America economically great, not the misguided use of funds to prop up university research programs, which is what this is really talking about.
