
America's Productivity Paradox - robg
http://blogs.hbr.org/cs/2011/11/americas_productivity_paradox.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29
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bandushrew
One thing that is needed for startups and to achieve 'lots of innovation' is a
market where wealth is well distributed. Where wealth is concentrated in the
hands of the few, fewer decisions are made about how to spend it. In a
'healthy' economy where the wealth is well distributed, lots of differing
decisions are made about where to spend it and there is room for lots of small
companies doing many different things. Once wealth is concentrated, and fewer
people are spending it there are less decisions being made and there is less
room for lots of small companies.

One of the great harms caused by an economy where the government and just a
few big players are doing the spending is that innovative small companies
depend entirely on partnership with large companies to get past the
gatekeepers and do well.

