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Really interesting blog from Robert X.  Wealth through productivity vs wealth through accumulation and the important but seriously declining role of IPO's. excerpt: "Big business grows by economies of scale, economies of scale are gained by increasing efficiency, and increased efficiency in big business always - always - means creating more economic output with fewer people. More economic output is good, but fewer people is bad if you need 100,000 new jobs per month just to provide for normal U.S. population growth. This is the ultimate irony of policies that declare companies too big to fail when in fact they are more properly too big to survive. Our policy obsession with helping big business no matter which party is in power has been a major factor in our own economic demise because it doesn't create jobs. Our leaders and would-be leaders are really good at talking about the value of small and medium size businesses in America but really terrible about actually doing much to help. Now here comes the important part: if small businesses, young businesses, new businesses create jobs, then Initial Public Offerings create wealth. Wealth creation is just as important as job creation in our economy but too many experts get it wrong when they think wealth creation and wealth preservation are the same things, because they aren't." ................. The fundamental error of trickle-down (Supply Side) economics is that it is dependent on rich people spending money which they structurally can't do fast enough to matter, and philosophically won't do because their role in the food chain is about growth through accumulation, not through new production. ..............................................

I'm less than convinced that IPOs create wealth, in terms of the aggregate wealth of the nation. Most of the "wealth" created by IPOs goes to the previous owner's of the business, plus whatever speculators can maneuver to acquire through capital gains. But waving the "IPO wand" does not magically boost productivity, business outputs, or business profitability. So if "wealth" is created, it is faux wealth. I think Cringely ventures too far from what the real argument is about: levels of government taxation and creating jobs. Supply Side economics is in reality an argument against taxing the wealthy. But Cringely doesn't even touch on the taxation issue. I also do not agree with his "Steve Jobs created 50,000 new jobs" schtick because he does not take into account how many jobs were destroyed in the process. But modern information technology has unquestionably destroyed more jobs than it has created; the technology never would have succeeded had it not boosted individual productivity to a point that massive numbers of employees could be laid off. For example, remember the days when you could call a business and have a human being answer the phone and direct your call to the right person? That lady doesn't have that job anymore because of voice menu/mail technology. IT is all about doing more with fewer people. In the context of jobs and taxation levels, the fundamental error of Supply Side Economics is not the distinction between wealth accumulation and wealth creation. The real fundamental error is globalism, government policies that create enormous incentives to invest capital outside the U.S. Supply Side Economics simply blinks past that enormously inconvenient reality. To illustrate, let's try remodeling trickle-down economics in a way that has a prayer of producing more and better-paying jobs in the U.S. (Over-simplification warning.) -- The U.S. withdraws from all trade agreements standing in the way and repeals all laws inconsistent with the goal of