I took a few minutes to go back over President Obama’s speech before the National Governors Association delivered yesterday. Mr. Obama’s argument that the nation must make opportunities available for Americans to pursue higher education makes economic sense given the needs of our evolving economy. The general welfare of the nation relies on a healthy and productive work force and education helps gets us there.
It is only part of the fix. What Mr. Obama should also be focusing on is getting productive capital into the hands of producers and getting consumers to think more like entrepreneurs, ever ready to leverage their resources into productive pursuits.
As I shared in an article on capital and the wealth gap last month, “The primary role of a government in a capitalist, free market society is to facilitate the delivery of capital into the hands of those willing and able to produce. Government, if it is to promote the validity of a capitalist economy, has to continuously address capitalism’s number one problem: the lack of capital.
Without land, money, and knowledge, citizens in a market-driven economy face increased barriers to building wealth and sustaining themselves or their families. Your stock of capital, properly used and invested, generates income and provides a buffer against downturns in the economy.”
Education is a good start, but government should do more to encourage capital accumulation.