Dependence on Government
Emily Maltby writes an article today detailing some of the challenges small companies have in obtaining Federal contracts. The last two paragraphs worry me:
“Mr. Lebolo, however, is shifting his firm’s strategy to primarily focus on government work. “I made a determination to look hard into the federal market because it was the only place with money,” he says.
“He says he’s not frustrated by the relatively small price tag of his first government assignment. Now that the process of landing a contract is behind him, he says there is no going back to commercial construction. He hopes to grow and begin hiring again by the end of this year. “This is a long-term decision,” he says.”
When the government becomes the sole or dominant market for several sectors in the economy, what will happen? Will that prove beneficial to the economy? Will that situation increase or decrease innovation? Will it stimulate creative solutions to business and human problems?
I’ll have more to say about these questions, and this increasing trend of reliance on government for business’s economic well-being. But I don’t think it bodes well for the economy, creativity, innovation or America’s competitiveness in the global marketplace.