There are some parts of the proposed economic stimulus bill that I think are really great. And those parts involve spending to spur technology. There is no doubt in my mind that economic progress depends on technological innovation. Some of the greatest technologies in our history have started from government programs -- including the Internet. And I hope that the current stimulus plan can get us some significant technological progress.
Here are the parts -- which merge alternative energy and information technology -- that I think have that potential:
- Using renewable energy sources, like wind turbines and solar panels, on a smart grid that could handle inconsistent electricity production;
- Creating more energy to lower the cost of running big computer servers;
- Employing variable pricing for peak hours since the smart grid could send signals in both directions, potentially expanding the Internet's reach;
- Extending other forms of broadband lines to rural and under-served areas; and
- Moving health records online which would open new markets for digital connections, data storage and consumer services
I worked with one of the architects of these elements of the stimulus plan, Jason Furman, in the 2004 presidential campaign. I know he is very smart and works well with people who have big egos and big ideas. I am eager to see these proposals get funded and look forward to the point where they spawn entirely new industries that can suck up venture capital investment and create exciting growth companies.
And in the interim, these high tech investments will put people to work making the U.S. less dependent on foreign sources of energy and improving the quality of health care while lowering its cost.
Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College. His eighth book is You Can't Order Change: Lessons from Jim McNerney's Turnaround at Boeing.
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
Reader Comments (Page 1 of 1)
2-10-2009 @ 2:01PM
TX CHL Instructor said...
The trillion-$ porkulous bill was designed to 'stimulate' the pocketbooks of BHO supporters, and it will definitely succeed at paying off the people that bought BHO his new job. It will also buy lots of votes from people who think the government owes them a living.
The rest of us, well... we're 'unpatriotic'.
--
www.chl-tx.com
2-10-2009 @ 8:23PM
william lindblad said...
Peter, with all due respect as I think the commentary is sincere --
I advise you to take a hard look - a real hard one.
The cost of alternative energy - referring to wind and solar in particular will at least, double all electric bills. The cost to clean up coal is not a hell of a lot less. 75% of power production is currently from coal and the best we can expect from wind/solar is 20%. Natural gas, although a fossil fuel, is probably the most cost effective major source. There is also the matter of hydro which seems to far to the back seat that it does not even get mention. That is what bothers me the most about our leadership as there are so many dams that were (and still are) hydro electric equipped. These systems are antiquated but could be modernized and brought back on line, supplying at least another 10-15 of power. As it stands it takes the back seat because it would require manpower and maintenance. That would also mean permanent jobs - are we crazy? The wind and solar require minimum maintenance and are usually too far from the existing grid and rely on natural sources that can vary widely that profitability remains sketchy. The nukes work, but are costly to maintain and cost a fortune to construct. Wind, solar and nukes all have something in common. Nobody wants them in their backyard.
As to the web being rural? I am rural and I am typing this? How far in the boonies are you referring too?
As to med. records. Great idea. The company that founded and created went bankrupt and was brought up by GE.
Medlogic.
2-13-2009 @ 2:36PM
Thomas Paine said...
The point is: stagnate or innovate. Imagine 120 years ago, when electricity was making its way into American homes. Boy! What an expenditure that must have seemed, but they managed to forge ahead with that worthy goal.
Then, part way into putting Mr. Edison's inventions into homes, a totally different concept emerged. Mr. Tesla proposed that we use Alternating Current, instead of Edison's Direct Current. Tesla's way was more efficient, more economical and safer.
Edison retaliated by *very publicly* electrocuting animals with AC power, culminating with the Coney Island circus elephant. You see, Edison stood to lose a lot of money. KWIM?
Long story short: Tesla won out. A massive *ongoing* public works project was totally revamped. It HAD to be done, for our future. Our FUTURE.
Come on, McFly, tell me that you're getting at least some of this. Show me a sign.