Big Think

Chuck Martin on February 19, 2009, 4:59 PM

Dear Dean Knetter,

All of those companies that you mentioned were startups. Perhaps the lesson to learn is that encouraging entrepreneurship is important.

In my experience, there are many people who are interested in becoming entrepreneurs. They are aware that it is not an easy path. They are willing to risk the loss of income during those first few years. But the one thing that stops them is the lack of affordable health insurance.

Also, with all the layoffs our health care system is about to face a flood of uninsured sick people. My understanding is that we all pay indirectly for the uninsured anyway.

What are your thoughts on making health insurance reform part of the economic recovery plan?

Thanks,
Chuck Martin, MBA

Jim Allard on February 19, 2009, 5:00 PM

Mr. Knetter first describes how wealth created during the 80’s was a result of large successful companies building capital by producing.

Then he cuts to a conclusion that we need government “stimulus,” which takes capital out of an economy and redistributes it, and place caps on the ability of companies to produce.

By what logic does this conclusion follow? Are there any actual business principles that support this conclusion or is this just propaganda?

Mike Knetter on February 26, 2009, 11:04 AM

Chuck:
For many reasons, I think health care reform is an important opportunity that we can seize in this country. Too many decision makers in our system do not bear enough of the economic consequences of the decisions that they make in my opinion. The result is over-prescription and over-consumption for many people and exclusion from coverage for others. If we can tackle this, it could help us well beyond encouraging entrepreneurship.

Mike Knetter on February 26, 2009, 11:05 AM

I understand your concern. Private companies were responsible for much wealth creation, as I mentioned. And I want an environment that is conducive to entrepreneurship. But there are also many public projects that can have positive effects on productivity—investments in education, transportation infrastructure or public utilities can boost productivity and lower the cost of business, for example—and tax reform can strengthen incentives to work, save and invest and also to curtail consumption of goods that have harmful side effects (such as carbon fuels). Government policy, even the stimulus, can be guided by sound cost-benefit principles just like private investment. But you can argue that it takes more leadership in government because you are making decisions with other people’s money.