John E. Schwarz:Tax.Spend.Create great jobs

Schwarz, a professor emeritus at the University of Arizona published his article at the Washington Post,August 30, 2008 on page A15:

The history of today's economy demonstrates that, to the contrary, govermental activism has been indispensable to the growth of many of our most prosperous industries and well-paying jobs in the United States. Such view is a strong rebuttal to Friedman's Theory in my past blogs. Schwarz wrote: " The government has responsibility for national security,defense,protecting public health, providing education and the like." My comment: Positive externalities are clearly noted from graphic presentations in my lectures three decades ago. Schwarz stated further: "A pivotal role for government is to offset lapses of the free market that confine the market's ability to generate basic, large-scale innovation on its own. The federal government has arguably been as important to the creation of new technologies, industries, jobs and wealth within the private sector over the past half century in USA as has the private sector itself." This is identical to my past blogs apropos the mix of private and public sectors in any economy. Here we may readily detect the nature of China's economy with market system. The common ground of Sino-American Economics is hereby validated by such empirical evidence nowadays.
Francis Shieh a.k.a. Xie Shihao. August 30, 2008.