A while back, Thomas L. Friedman was on the Daily Show to advertise his new book Hot Flat, and Crowded. It may be that he oversimplified his explanation for the show, but I am terribly unimpressed. He said we should overinvest in green technologies, cause a bubble, and reap the benefits.
He said that the dot-com bubble left us internet infrastructure and the financial crisis left us with overpriced condos, and now we need a green bubble to get us out of the financial crisis.
The definition of a bubble is putting in more money than it’s worth. Period. If it is going to pay off in the future, that would be called an investment. So this guy wants us to throw more money into an industry’s R&D than it’s worth, he wants us to lure people into investing in the training, experience, and time that is going to dump their job when the bubble comes due. Ask those bankers and financial analysts if there’s too many to go around. He wants us to do it right now so that we can solve or past excesses, not by learning from our mistakes but by repeating them.
The money that Friedman advocates wasting could be better used in making bigger differences on other problems. Those people who are now considering their careers possibly for the rest of their lives may have been more valuable to society learning and performing in other industries. Our current opportunities as they are, to make investments, could be better spent on less ridiculous schemes.
We did not have to overindulge in internet startups to benefit from investing in IT infrastructure. We didn’t have to make ludicrous choices about home ownership in order to gain what dubious benefits we will get out of this mess. And we certainly don’t have to do it again.
To recognize underinvestment is one thing. To deliberately waste money when there are better uses is absurd.