tag:blogger.com,1999:blog-4186415378654488861.post5065762108830574978..comments2023-12-27T06:22:48.057-08:00Comments on Blended Purple: "An Innovation Slump"Purplehttp://www.blogger.com/profile/15279006503378899442noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4186415378654488861.post-60565643234784050732010-03-21T16:38:16.861-07:002010-03-21T16:38:16.861-07:00Hi. You write: "Without innovation in new ind...Hi. You write: "Without innovation in new industries, leading to productivity growth, there will not be substantial new private investment." Okay, sure, and: "In the meantime, there will be weak growth and a lot money slopping around in the financial sector or funneled into emerging markets, and more crisis."<br /><br />You see financial crises as a <i>result</i> of the lack of innovation. I would say the opposite. I think dogmatic policy created excessive reliance on credit, which raised costs and reduced profits in the productive sector, which made the financial sector our most successful growth industry. There was PLENTY of "financial innovation" because that was where the profit was. <br /><br />Innovation will return to the productive sector on the heels of decent returns...<br /><br />(An attempt to practice clear thought and expand on an interesting topic.)The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com