Mitch Daniels, in his response to Obama's SOTU, suggested Steve Jobs was a great job creator. The thing is, Jobs was a great job creator for other countries besides the US. And besides being lured by lower wages in countries like China, manufacturers are also lured by a manufacturing infrastructure.
Krugman goes on to explain why the auto industry bailout was so important even to Ford even though Ford did not receive direct bailout money. Without the bailout the producers and suppliers would have dwindled and that would have been disastrous for Ford, not to mention the unemployment rate would have soared even higher.Mr. Daniels first berated the president for his “constant disparagement of people in business,” which happens to be a complete fabrication. Mr. Obama has never done anything of the sort. He went on: “The late Steve Jobs — what a fitting name he had — created more of them than all those stimulus dollars the president borrowed and blew.”
Clearly, Mr. Daniels doesn’t have much of a future in the humor business. But, more to the point, anyone who reads The New York Times knows that his assertion about job creation was completely false: Apple employs very few people in this country.
Wow. Shades of Elizabeth Warren.And Chinese manufacturing isn’t the only conspicuous example of these advantages in the modern world. Germany remains a highly successful exporter even with workers who cost, on average, $44 an hour — much more than the average cost of American workers. And this success has a lot to do with the support its small and medium-sized companies — the famed Mittelstand — provide to each other via shared suppliers and the maintenance of a skilled work force.
The point is that successful companies — or, at any rate, companies that make a large contribution to a nation’s economy — don’t exist in isolation. Prosperity depends on the synergy between companies, on the cluster, not the individual entrepreneur.
http://www.nytimes.com/2012/01/27/op...cars.html?_r=2So we should be grateful to Mr. Daniels for his remarks Tuesday. He got his facts wrong, but he did, unintentionally, manage to highlight an important philosophical difference between the parties. One side believes that economies succeed solely thanks to heroic entrepreneurs; the other has nothing against entrepreneurs, but believes that entrepreneurs need a supportive environment, and that sometimes government has to help create or sustain that supportive environment.
This is the point that lefties have been trying to make. We don't hate business owners - hell! we don't even hate big business - what we want is economic policies that recognize that no man is an island and no business is either.



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