A fundamental principle of information theory is that you can’t guarantee outcomes… in order for an experiment to yield knowledge, it has to be able to fail. If you have guaranteed experiments, you have zero knowledge
George GilderRead
A policy of subsidizing failures will end in an economy strewn with capital-guzzling industries long past their time of profitability - old companies that cannot create jobs themselves, but can stand in the way of job creation.
Interpretation
What this quote means
Subsidizing failing businesses hinders economic growth and job creation.
George Gilder's quote underscores the negative impact of government policies that support failing businesses through subsidies. Such practices can lead to an economy burdened by outdated companies that consume resources without contributing to innovation or job creation, ultimately stifling entrepreneurship and growth within more dynamic sectors.
Themes
SubsidiesEconomyJob CreationBusinessInnovation
In practice
Example use cases
During a debate on government spending, one might use this quote to argue against supporting failing industries.
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