Job losses at icon brand companies make big headlines. Politicians are addicted to giving taxpayers money to large businesses, including trying to lure them into their electorate. We all love the idea of having the next Apple or Google in our electorate, but look at the US economy and its poor performance over the past decade despite having these two emerge as giants over that period.
It’s hard to name icon companies from Singapore or Netherlands or Austria yet these are some of the richest, most productive economies in the world. It’s a reminder to government that any modern economy is diverse and complex, even a Google is a tiny player within it. What matters much more than having a few of these star companies is that thousands of less-than-household name companies can do business easily. e.g. an efficient retail sector is a stark difference between highly productive and less productive economies. I know this isn’t sexy, but it seems to be the truth.
This means that government should concentrate on infrastructure, on good and simple laws, less red tape, flexible workforces, access to training/re-training.
I note that Australian government investment in Roseworthy Agricultural College, and the Waite Institute, and setting the levy that funded the Grape and Wine R&D Corp has returned an astonishing return – creating Australia’s modern export wine industry (and better wine for Australians). But all attempts to save the industry in times of a high Australian dollar and so on (e.g. the 1980s grape vine pull) did little good, just put money in the pockets of a few lucky businesspeople.
I suspect there are many similar examples in many other industries.