By Bernie on 04 Oct 2012
Photo Credit: Hetemeel.com
Obama is right, no one creates anything without the help of others. For example, Einstein himself admitted that he could not have discovered the relationship between energy and matter without chalk. Going further, he could not have published his work without fountain pens, paper, and the Swiss Postal System through which he mailed his ideas to scientific journals.
But Nobel Prizes are not given out to people who build roads or fix bridges or manufacture fountain pens even though the Nobel Laureate cannot write his ideas down without some writing instrument or even get to the Nobel Ceremonies without traveling on a road or crossing a bridge or flying on an airplane.
In response to my article The Calandra`s Bakery Hoax, visitor Greybeard ascribes the success of that company's bakery to government help:
the business [Calandra's Bakery] was built without public roads, sewers, power grid, police protection, etc. Yep, just all alone out there, no public infrastructure at all.
Obviously Greybeard missed my article They Build Roads and Bridges in Russia But Where are the Entrepreneurs, where I noted that "the former Soviet Union had more natural resources, more timber, more mines, many times the land area and a larger population than the US," yet had practically zero successful businesses. Roads and infrastructure and especially government expenditures have nothing to do with business creativity, if they did, then the Soviet Union, which spent more on factories, roads, bridges, agriculture, housing, subways, schools and universities than the US, should have had more than a piddling 16 scientific Nobel Prizes (as of 2009), only a few handful more than tiny Israel which has an insignificant number of roads, bridges and infrastructure.
Sorry, Greybeard, the road to genius is not paved with asphalt but with freedom from government interference. Here is what Calandra`s Bakery would look like in the Soviet Union, with its roads and bridges and infrastructure and government help:
Bakery in 1963 Russia
Photo Credit: Heinar`s Website
Since Greybeard is not a careful thinker regarding entrepreneurship, allow me to explain why this shop has empty shelves: because the government did everything for the individual. In other words, businessmen did not have to do anything, the ordering, acquisition, purchasing and delivery of supplies and products were all done with the help of government. In the Soviet Union, truly one can say, "You did not build the business, you did not create that."
Anyone who believes that infrastructure builds businesses has no clue what drives innovation and creativity and business success.
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