In a recent article (see http://www.mrglobalization.com/change-and-innovation/innovating-out-of-crisis ), we argued that America has a capacity for generating an entrepreneurship- and innovation- driven path out of crisis.  One of our readers, Gary Judd QC, disagrees with this proposition, and has shared the following thoughts with us.

I disagree with the proposition that US capacity for generating an entrepreneurship- and innovation- driven path out of crisis will lead to recovery.  If there is recovery it will be temporary and at a lower level.

The US is in dangerous state (most of the world is, but the US is the most important).  US government policies have progressively moved from the nearest any state has been to capitalism to increasing restrictions on business.  Companies like Microsoft, Nokia, Google, Blackberry (RIM) have been able to succeed in spite of these policies.  They are constantly under attack through the vicious anti trust laws  because they are too successful.   Lip service only is paid to entrepreneurship and innovation.

To this is to be added the increasing pervasiveness of an 'entitlement state' mentality which is economically and culturally destructive (compare Asian countries where this mentality does not exist, a critical competitive advantage).

The US has been in an accelerating decline, albeit with occasional moves in the other direction, since the 1950s, although the seeds were sown earlier.  There have been descending plateaus, the current economic and philosophic/cultural situation being the lowest.  The "remedies" for the economic decline introduced by Bush and added to by Obama are enacting the causes for the next downwards lurch in economic performance and the well being of the American people.

Historically, all civilisations have eventually declined and fallen.  The US could be an exception if it could recover the values it once had, but unless radical steps are taken it is likely to be in terminal decline.

The present Republican leaders will not initiate the radical steps which are required.  A Republican administration which does not understand and desire capitalism will preside over a worsening situation which the Democrats will blame them for, paving the way for
further Democrat onslaughts on the vestiges of capitalism which remain.

Gary Judd QC