The View From 1776
Sunday, January 22, 2012
Kodak vs. Solyndra
Liberal-progressive-socialist state planners are not as successful as private investors in satisfying consumers’ wants.
The collapse of Solyndra and Kodak’s bankruptcy filing illustrate the difference between a socialistic planned economy and capitalistic free enterprise. Under state planning, uneconomic companies can be created and failing ones propped up by the state. Under free enterprise, only companies that have a good chance of prospering will be bankrolled by investors, and those that don’t prosper will be left to fail.
Kodak for generations was an international icon of private technological success. Solyndra never even got off the ground.
In the first decades of the 19th century, when the doctrines of socialism were being codified, the concept of social engineering emerged. Belief in the possibility and effectiveness of a planned economy is the central economic doctrine of liberal-progressive-socialism.