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Political Factoid
An American Economic Cycle:
- Phase-1
- The Government (using taxpayer money) funds Research and Development
- DARPA, NASA, tax breaks, tax credits, etc.
- Adds to the federal deficit and national debt
- Phase-2
- Basic research (mostly govt) is followed by applied research (privately funded with tax breaks)
- This provides an environment for American innovation.
- Phase-3
- Numerous start-up companies generate new American jobs
- Applied Research and subsequent production
- Helps the economy grow
- Phase-4
- Within a few years these new companies produce profits of business owners and leaders.
- Phase-5
- American workers from these companies begin paying back U.S. Government (and the other American taxpayers) for the subsidized R&D investments.
- Income taxes from the government R&D workers
- Income taxes from private, for-profit company R&D employees
- Income taxes from private, for-profit production company employees
- Phase-6
- CEO's transfer this U.S.government initiated technology offshore for production at lower labor rates by non-Americans.
- This cuts off income tax payback to the U.S. Government.
- This results in U.S. layoffs and unemployment.
cf. 374
- Phase-7
- Fully predictable results
- adverse economic conditions ensue.
- Phase-8
- American CEO's and conservative politicians blame lack of enough U.S.Government investment in R&D.
- This will increase national debt
- To be funded by China.
| Govt |
Phase 1 |
Phase 2 |
Phase 3 |
Phase 4 |
Phase 5 |
Phase 6 |
Phase 7 |
| Investment |
Tax funded |
2 |
3 |
- |
- |
- |
- |
| Payback |
- |
- |
3 |
4 |
5 |
Reneged |
FPR |
cf. FPR
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