Comments on: Do Bailouts Suppress the Creative Class http://www.creativitykilledtherecession.com/do-bailouts-suppress-the-creative-class/ Wed, 26 May 2010 17:47:14 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jonathan http://www.creativitykilledtherecession.com/do-bailouts-suppress-the-creative-class/comment-page-1/#comment-197 Jonathan Sat, 07 Nov 2009 04:33:37 +0000 http://www.creativitykilledtherecession.com/?p=79#comment-197 @Taylor: I think it’s less about bailing out greedy companies than about bailing out the victims (e.g. workers, retirees). The younger people are probably going to be alright and can transfer their skills to another corporation, but it’s the retirees that are going to have the hardest time, many of them depend fully on GM to live the rest of their lives. I suppose there is the government backed pension guaranteed corp. to act as a safety net, but in no way does it guarantee to cover everything. As for whether putting the money into small businesses and entrepreneurs will help, I’m sure it does and Obama knows it. http://www.dailypress.com/health/sns-dc-obama-small-business,0,4486626.story I’m sure he recognizes the role small businesses’ play in innovation, but he probably also understands the huge negative consequence of not bailing out big companies, that’s why he’s trying to seek a balance. I’d think in the long run, smaller businesses will fill in the gaps of bankrupt corporations if they are not bailed out, and everything will be just fine, but in the short run, things are going to get very messy. Small businesses are not going to generate the same amount of revenue large corporations do and replace the jobs lost in one day or anytime soon. It’ll be a long process, and maybe that process is just too painful to bear for a lot of people. And it’s not like economics is the only thing that fuels creativity and innovation. Like you said in your other article, true entrepreneurs and true inventors will start their own businesses and invent regardless of the economic conditions. The extra money will definitely help motivate those that are on the fence, but creativity will happen regardless. If innovation is going to happen no matter what, then this is not really about choosing one over the other, it’s more about whether you want to speed up one and neglect the other. And if you think about it that way, it probably isn’t worth the pain. @Taylor: I think it’s less about bailing out greedy companies than about bailing out the victims (e.g. workers, retirees). The younger people are probably going to be alright and can transfer their skills to another corporation, but it’s the retirees that are going to have the hardest time, many of them depend fully on GM to live the rest of their lives. I suppose there is the government backed pension guaranteed corp. to act as a safety net, but in no way does it guarantee to cover everything.

As for whether putting the money into small businesses and entrepreneurs will help, I’m sure it does and Obama knows it.

http://www.dailypress.com/health/sns-dc-obama-small-business,0,4486626.story

I’m sure he recognizes the role small businesses’ play in innovation, but he probably also understands the huge negative consequence of not bailing out big companies, that’s why he’s trying to seek a balance. I’d think in the long run, smaller businesses will fill in the gaps of bankrupt corporations if they are not bailed out, and everything will be just fine, but in the short run, things are going to get very messy. Small businesses are not going to generate the same amount of revenue large corporations do and replace the jobs lost in one day or anytime soon. It’ll be a long process, and maybe that process is just too painful to bear for a lot of people.

And it’s not like economics is the only thing that fuels creativity and innovation. Like you said in your other article, true entrepreneurs and true inventors will start their own businesses and invent regardless of the economic conditions. The extra money will definitely help motivate those that are on the fence, but creativity will happen regardless.

If innovation is going to happen no matter what, then this is not really about choosing one over the other, it’s more about whether you want to speed up one and neglect the other. And if you think about it that way, it probably isn’t worth the pain.

]]> By: Taylor http://www.creativitykilledtherecession.com/do-bailouts-suppress-the-creative-class/comment-page-1/#comment-5 Taylor Mon, 17 Aug 2009 19:25:17 +0000 http://www.creativitykilledtherecession.com/?p=79#comment-5 I personally think the idea behind letting everything fail and re-start again is not a bad one. Why are we bailing out companies whose main goal is ridiculous profit? Companies who are putting people out of work for this exact reason and in turn are ironically losing more profit because their potenial buyers are now unemployed. Corporations are not humane, they are not creative, they are destructive. The key is small business, more community and locality. The GM workers making $75 an hour should split that pay and employ a friend,. I personally think the idea behind letting everything fail and re-start again is not a bad one. Why are we bailing out companies whose main goal is ridiculous profit? Companies who are putting people out of work for this exact reason and in turn are ironically losing more profit because their potenial buyers are now unemployed. Corporations are not humane, they are not creative, they are destructive. The key is small business, more community and locality. The GM workers making $75 an hour should split that pay and employ a friend,.

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