Never one to propose popular or easy plans, Andy suggests rebuilding our industrial infrastructure and employment through financial incentives and taxing products of offshore labor and using the proceeds to incent companies to scale their American operations. He believes that this transfer of manufacturing and engineering expertise out of the country will ultimately lead to less innovation.
When my wife first mentioned this Job Wars research project she was working on a few months ago, I responded with the traditional view that start-ups are the vehicle of job creation and government policy should be to not get in the way of this ecosystem, as New York Times Columnist Thomas Friedman argues in "Start-Ups, Not Bailouts." I sent her a bunch of data to refute these claims. According to the Venture Impact Study sponsored by the National Venture Capital Association ("NVCA"):
- In 2008, Venture Backed companies employed more than 12 million people and generated nearly $3 trillion in revenue (11% of private sector employment and 21% of GDP)
- Venture Backed Company Job Growth was 8x private sector job growth from 2006-08
- In 2008, one U.S. job existed for every $37,702 of venture capital invested from 1970-2008
Perhaps a discussion worth having at your beach parties and barbecues this weekend. Enjoy the fireworks!