Technology Investment and Stimulus Updated (Jaideep Venkatesan)

NY Times columnist Thomas Friedman argues that instead of bailing out what he views as the "losers" (Big 3 auto manufacturers), the Federal Government should invest in information technology by funding venture capitalists.

Start Up the Risk Takers. 

Friedman's simplistic approach taps into a definite rising popularity of a basic idea - that government can, and should, invest in the American economy through appropriate spending mechanisms. Whether or not funding venture capitalists is the best option, his idea that government must play a strong role in the American economic growth through strategic investment is a sound one.

Technology Investment and Stimulus (Jaideep Venkatesan

EE Times breaks down the different types of technology investment in the American Recovery and Reinvestment Act. Naturally, most of the "technology investment" is in clean or alternative fuel technology, and rightly so. I'd be interested in additional government investment in high technology, given its roles in the recovery from the most recent recessions (early 1990's and early 2000's). The only non-energy technology spending listed is $580 million for the National Institute of Standards and Technology for technology innovation and manufacturing standards programs. , according to EE times.


Stimulus breakdown: $43 billion for energy technology

Massive deficit spending is clearly the only way that the economy can regain confidence, if it is done intelligently. It clearly wasn't done intelligently in the 2001-2002 period, as the stimulus was not targeted at those income groups, or economic sectors, most likely to stimulate the economy. Indeed, even economists who have opposed government spending to stimulate the economy have warmed to the idea, recognizing a crisis where the nation's economy shed over a million jobs in the last few months alone.

Economists Agree Time Is of the Essence for Stimulus