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 | http://www.gilder.com/ | Issue 311.0/September 21, 2007

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HEADLINES:

-  The Week / Forbes Picks Sagamore for Telecosm Conference
-  Friday Feature / Gilder on Basic Economics
-  Friday Blogger Bonus / Those Silly Moon-bats …
-  Readings /


SPECIAL OFFER


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Hosted by George Gilder & Steve Forbes | October 16 – 18
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Gilder/Forbes Telecosm 2007 is sponsored by Gilder Publishing, LLC;
 
Forbes Inc.; Verizon; Qualcomm; EZchip; Wave Systems, and Acton Media.

 

The Week / Forbes Picks Sagamore for Annual Telecosm Conference

Richard D’Errico, The Business Review (Albany, NY) (9/14/07): An annual high-tech conference spearheaded by Steve Forbes, president and CEO of Forbes, is coming to upstate New York after a decade on the West Coast.

The 11th annual Gilder/Forbes conference is scheduled for Oct. 16-18 at The Sagamore in Bolton Landing [NY].

 

The event brings CEOs, chief technology officers and other senior executives together to debate and discuss future technology. Several hundred people are expected to pay $1,995 to attend.

 

Forbes, who also is Editor in Chief of Forbes magazine, said having the conference on the East Coast, after years at venues such as Lake Tahoe, was a positive sign about the conference's reach.

Forbes said New York was chosen because of its promising technology sector.

 

"We are familiar with what's happening and this is one of the good legacies of [former Gov.] George Pataki," Forbes said.

 

Forbes, a former Republican candidate in the U.S. Presidential primaries in 1996 and 2000, is currently national co-chair and a senior policy adviser to Rudolph Giuliani's 2008 campaign.

 

"New York, as a whole, if it got its economic act together, the area could truly take off in terms of what's happening in high-tech," Forbes said. "What needs to happen? Where does one start? Taxes. Much too high. Politics, spending, still out of control. And regulations are still pretty heavy-handed. And if they could take an ax to some of that stuff, there's some beautiful areas and a lot of universities, plenty of intellectual capital that could provide the foundation for some pretty exciting things."

 

He said Pataki's support of high-tech, including the investment of millions of dollars into the state University at Albany's College of Nanoscale Science and Engineering, is showing signs of progress….

Michael Relyea, who is overseeing the development of the Luther Forest Technology Campus, said he is looking to see what role local economic developers might play in the conference. Advanced Micro Devices Inc. has said it plans to build a $3.2 billion computer-chip plant at Luther Forest…. [READ ON]

 

Register FOR TELECOSM ONLINE today: http://www.telecosmconference.com/

The Gilder Telecosm Forum

The
web’s premier technology investment discussion forum, the Gilder Telecosm Forum is a powerful network of talented, tech-savvy investors and thinkers who collaborate online daily with George Gilder and the Gilder Telecosm Forum analysts and editors.

Become a GTF member today: http://www.gildertech.com/


Friday Feature / Basic Economics

Gilder Telecosm Forum Member (9/15/07):  George, I went to High School Theodore A. Burczak. What exactly is he writing about? I made a “C” in Economics and I got lost in the write-up when you mix Socialism + Private and Democratic altogether.

About
Socialism after Hayek, by Theodore A. Burczak: Socialism after Hayek reinvigorates the socialist quest for class justice by rendering it compatible with the social and economic theories of F. A. Hayek. Theodore A. Burczak advances a new vision of socialism that avoids Hayek's criticisms of centrally planned socialism while adhering to a socialist conception of distributive justice and Marx's notion of freely associated labor. In contrast to the socialist models of John Roemer, Michael Albert, and Robin Hahnel, Burczak envisions a "free market socialism" in which privately owned firms are run democratically by workers, and governments engage in ongoing redistributions of wealth to support human development, yet markets are otherwise unregulated.

Theodore A. Burczak is Associate Professor of Economics at Denison University. Visit his website at:
www.denison.edu/economics/faculty/burczak.html.
 
Nick Tredennick
, Gilder Telecosm Forum (9/15/07): Hayek and Marx are oil and water. Free markets and socialism are oil and water.

The reviews you cite make the thesis sound suspicious. Reviews use terms such as "free market socialism," "class justice," and "abolition of exploitation." These terms imply that there's some judge of class justice or some measure of exploitation and that there's some authority that will determine redistribution of wealth.

There is a market cost for for social injustice. Prejudicial hiring practices, for example, create wage differences that competitors will exploit. The consequent competitive advantage will discourage prejudicial hiring.

Exploitation is generally the pejorative term for profit. Someone thinks the price of labor's services is too low. But it is profit that provides the incentive for efficiency, invention, and improvement. Except in unusual circumstances, competition will cause the price of labor's services to rise to its market value.


George Gilder, Gilder Telecosm Forum (9/15/07):  A remedy for such toxic sludge is Basic Economics by Thomas Sowell (Basic 2007), who was trained as a Marxist in his youth and is one of the world's leading interpreters of Hayek. I am giving the Sowell text to all my kids.

The key insight is that entrepreneurial startups are already controlled by their workers, who are also owners. Any further extension of "democracy" to such economic entities turns them into cumbersome bureaucracies. And taxing and redistributing profits eliminates the ability of the owner-workers of small companies to expand.

This entire Hayekian socialist concept is further evidence for my point in response to Bret's excellent post on the "Big Boom." The belief that demand drives economic growth allows theorists to imagine that demand can be redistributed without damage. The notion that markets precede entrepreneurial creativity prompts the idea of market socialism. Markets must be entrepreneurial and profit driven to be effective in promoting growth.

To read more posts by George Gilder, Nick Tredennick, and the Gilder Telecosm Forum members, visit http://www.gildertech.com/ and log on today.
________________________________________

Friday Blogger Bonus / Those Silly Moon-bats …


Bret Swanson, Disco-tech blog (9/13/07): Quick, Jon Chait, which raving supply-side moon-bat wrote this today?

”In the past 50 years, there have been two macroeconomic policy changes in the United States that have really mattered. One of these was the supply-side reduction in marginal tax rates, initiated after Ronald Reagan was elected president in 1980 and continued and extended during the current administration. The other was the advent of "inflation targeting," which is the term I prefer for a monetary policy focused on inflation-control to the exclusion of other objectives. As a result of these changes, steady GDP growth, low unemployment rates and low inflation rates -- once thought to be an impossible combination -- have been a reality in the U.S. for more than 20 years.”

 

Yes, of course, it was that frothing fringe dodo named Robert E. Lucas, Jr., winner of the 1995 Nobel Prize.

In 2007, U.S. GDP will approach $14 trillion, tax revenue will easily top $2.5 trillion, and the budget deficit will drop towards a trivial 1% of GDP. Despite recent volatility, domestic stock markets remain near all-time highs achieved earlier this summer. Riding a worldwide surge of tax cuts, free trade, and innovation, global output this year will surpass $50 trillion. But in reading Jonathan Chait’s new book The Big Con, one would assume that the Reagan and Bush economic programs had plunged the U.S. into depression and the global boom did not exist.

One would have to assume. Because in this book about “crackpot economics,” Chait has remarkably little to say about economic growth, tax receipts, budgets, or the epochal story of globalization. With all the global evidence refuting Chait’s predetermined conclusion that supply-side economics doesn’t work, he retreats to a political analysis of the Republican Party and petty defamation of some of the era’s most important economic thinkers….

 

Read my complete review of Jonathan Chait's book The Big Con:
http://www.disco-tech.org/2007/09/the_big_boom.html

 

Check out the Disco-tech blog: http://www.disco-tech.org/
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Readings /
 
Announcing "The Observatory:" sine scientia ars nihil est
http://arstechnica.com/news.ars/post/20070919-announcing-the-observatory-sine-scientia-ars-nihil-est.html

‘Don’t Cut,’ Says Wesbury
http://blogs.forbes.com/digitalrules/2007/09/dont-cut-says-w.html

Hands On with the TI Cellphone Projector

http://www.engadget.com/2007/09/20/hands-on-with-texas-instruments-cellphone-projector/ 

The Weekly GTI
http://www.gtindex.com/

Top 10 Laughably Bad Tech Ads
http://crave.cnet.com/8301-1_105-9781224-1.html

Canadian dollar climbs to parity with greenback
http://www.boston.com/business/articles/2007/09/20/canadian_dollar_climbs_to_parity_with_greenback/

Deutsche Telekom to Offer iPhone in Germany
http://www.nytimes.com/2007/09/20/technology/20iphone.html?_r=1&ref=technology&oref=slogin

__________________________________________


FRIDAY LETTER STAFF

Editor: Mary Collins George / mcollins@gilder.com

Research: Sandy Fleischmann / sfleischmann@gilder.com

 

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