The New Normal
With regard to Mr. Schwaretz’s article on the “new normal”( NY Times “Jobless and Staying That Way”, 8/7/2010), both camps are right. Unfortunately, the same forces that created the new normal are fuel for the cyclical trends. The cycles are partly a reaction to inefficiency in the wider market; when the world’s wealth is not tied to, or moving in parallel with, value creation. The wrong market players are getting all the money.
Entrepreneurs know ideas are nearly worthless; Execution creates value. I promise that very few, if any, of the investment bankers are executing on tens of millions of dollars of value creation. They are siphoning.
This continent was settled by the religious but the United States was founded by entrepreneurs. Entrepreneurs will use whatever infrastructure we give them to build real value. They will use whatever safety net we give them, like loans and health insurance, to take more risks and try new things.