Last quarter I saw something for the first time. I don't know what to call it, so I'll just describe it.
The student believed business was a matter of going to the local, state and federal government and getting permits, and licenses for a given business. Next, the student expected the government would provide a list of suppliers and customers. Also, the government would provide any necessary financing. After this, the student would be in business, and do well and live happily ever after. My job was to provide, in sequence, the steps and lists. One signed up at a government school to learn these things.
I was astonished when it dawned on me, through several emails, what this student expected. But here is the problem: the student argued, in essence, what were all these government programs for if not exactly what the student outlined? Was I suggesting that the taxes we pay for these services are a waste, and the people working in these government offices are not really performing any value, and that is largely a charade? Was not most of USA industry heavily reliant on government assistance? What was the commerce department and Small Business Administration for if not exactly what the student held to be true?
When I argued "well, yes, it is a waste," the student became indignant, and took his complaint to the school. In time even the school despaired of correcting the misapprehension on the student's part. The school was accused of cheating the student!
I've never met anyone, inside or outside of government, who actually believed in the "program." People always seem to understand, and in varying degrees know, that life is about compromises, and there is plenty of wackiness in the world, and gee, what are you going to do?
I have never met anyone who takes it all at face value, and lives in full confidence it is just as advertised: to start a business, you go to government, and it gives you customers, suppliers, finance and whatever else you need.
But who can argue with this? Is this not exactly what is true for most of USA industry? The biggest single customer in the world is the United States govt, so why not?
Trying to argue that one should be creative and base a business on customers, that is, not relying on the government, sounds downright foolish, if not seditious.
In time he will work out the steps himself, and then no doubt fail. Or maybe not, maybe this is exactly how Warren Buffett and Bill Gates think, but no, those two "get it." I wonder how this person will feel after he fails. One of the great safety valves in USA is the fact that no one really trusts the government. People who are fooled get very angry. Even dangerous. When the government fails, like Katrina, Wall Street Supervision, 9-11, we all just shrug our shoulders. Of course they failed. That is how come we do not depend on it. What a strange thing to see someone who completely buys the program!
It has dawned on me that all of us are not far from this particular student's position when it comes to education. Do we not mostly believe education is a matter where you go to the government, get told (SAT tests) where to go to school, at mostly government schools, and what to take, and then are given the money to succeed at education, all by government? And with our government-given education, we will succeed and live happily ever after? Are we not as delusional about education as this student is about business?
One comes across the strangest things when teaching.
Saturday, September 3, 2011
Never Seen This Before
Posted in busted, free market, govt regulation by John Wiley Spiers
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