T.J. Rodgers, Founder, President and CEO of Cypress Semiconductor has an article in today's Wall Street Journal called "Subsidizing Wall Street to Buy Chinese Solar Panels."
In the article he updates the Law of Unintended Consequences with the corollary Law of Misguided Subsidies: "Whenever Washington disrupts a market by dumping subsidies into it, Wall Street will find a way to pocket a majority of the money while the intended subsidy beneficiaries are harmed by the resulting market turmoil."
In the Cowboy Safety approach the safety model aims to allow the intended beneficiaries to get the subsidies and aims to make a path so that harm is not done. To do this requires knowledge and understanding. It also means planning well in advance often at the point of firm formation. Government also plans well in advance and may even design the subsidy program to make it difficult for the intended beneficiaries to achieve any benefit. That is because they may have another agenda or may themselves be victims of The Law of Unintended Consequences. The Cowboy Safety approach is not to take a political position, not to be critical, but to understand, to benefit and to avoid damage.
Cowboy Safety goes beyond the concepts of tax planning that is looking for deduction s and deferrals. Cowboy Safety puts the business into relevant context and synthesis. Most accountants, and I started out as one, are left brain thinkers. Left brain thinkers can analyze but they cannot synthesize. Left brain thinking worked well with industrial age businesses that transformed low level materials into higher level materials. Each step added value. Left brained thinking cannot handle any other business concept. It cannot handle the dimensions of experiential and transformational business that is borderless not just geographically but borderless in concept and in time. Neither can government.
David Sneed
In the article he updates the Law of Unintended Consequences with the corollary Law of Misguided Subsidies: "Whenever Washington disrupts a market by dumping subsidies into it, Wall Street will find a way to pocket a majority of the money while the intended subsidy beneficiaries are harmed by the resulting market turmoil."
In the Cowboy Safety approach the safety model aims to allow the intended beneficiaries to get the subsidies and aims to make a path so that harm is not done. To do this requires knowledge and understanding. It also means planning well in advance often at the point of firm formation. Government also plans well in advance and may even design the subsidy program to make it difficult for the intended beneficiaries to achieve any benefit. That is because they may have another agenda or may themselves be victims of The Law of Unintended Consequences. The Cowboy Safety approach is not to take a political position, not to be critical, but to understand, to benefit and to avoid damage.
Cowboy Safety goes beyond the concepts of tax planning that is looking for deduction s and deferrals. Cowboy Safety puts the business into relevant context and synthesis. Most accountants, and I started out as one, are left brain thinkers. Left brain thinkers can analyze but they cannot synthesize. Left brain thinking worked well with industrial age businesses that transformed low level materials into higher level materials. Each step added value. Left brained thinking cannot handle any other business concept. It cannot handle the dimensions of experiential and transformational business that is borderless not just geographically but borderless in concept and in time. Neither can government.
David Sneed
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