Becoming "shareholders" and protagonists of growth

Is there a link between the recent scandals relating to the management of Italian state resources for political parties, and the continuing crisis of productivity and inefficiency of a government corrupted and unable to pursue the public interest above party interests? There is. We are convinced that moral and economic decline are two sides of the same coin. The moral issue, the productivity of labour, and the system of rules are intersected spheres that influence each other, to the point that their concomitant weakness makes clear the state of anthropological devastation, economic decline, and disrepute rules under which we have been suffering for too many years.

It is an illusion to think that economic growth will magically appear in our lives without a policy action able to focus on the moral, political and economic importance of "human capital." In other words, a policy program that is able to project a clear vision of the link between productivity, innovation, and economic creativity.

By "creativity" we mean the virtue of initiative that from the perspective of Christian anthropology is closely related to the "creative subjectivity" of the human person. It is, to use an analogy made by the neo-Austrian economist Israel Kirzner, the ability to see the profile traced by the earth's surface in the ocean over the horizon, where others, throughout centuries, had only seen clouds. By "creativity" we mean that ability to discern between a large number of options and locate one to give life to with productive effort.

The main form of wealth was believed for centuries to be land; today, there is no doubt that in a politically and economically healthy system, knowledge is the most reliable source of wealth that mankind has ever known. The best way to express such a virtue seems best summed up in the words of Peter Drucker. He emphasized the notion of knowledge and returned the human factor to an economic science: "Now we know that the source of wealth is something specifically human. If we apply knowledge to tasks we already are able to do, we call it ‘productivity'. If we apply knowledge to tasks that are new and different, we call it ‘innovation'. Only knowledge allows us to achieve these two goals."

The translation of these ideas as part of a policy program for the next Italian parliamentary term may therefore be summed up in a series of concrete actions that can lead our production system to a complex process of restructuring and competitive realignment.

On one hand, it is necessary to clean up political ethics as well as aesthetics--focusing on a serious and responsible leadership rather than on Emulating improbable cartoons. On the other hand, we should look at creativity and knowledge as public goods used to promote and safeguard, supporting the establishment of university centres of excellence, encouraging merit and competition in schools and among schools, and appreciating the most innovative companies.

In the front of the dynamism and competitiveness of the global economy, rather than looking forward to talent and training as levers for competitiveness, for too many years we have been chained to the defense of myopic advantageous positions. Only if we walk on the path of knowledge can we expect a slow but necessary awakening of our beautiful  (though still sleeping) Republic.

Flavio Felice is Adjunct Fellow American Enterpise Institute and President of Tocqueville-Acton Centre Studies

 

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Monday, June 17, 2013 | 6:00 p.m. – 7:00 p.m.
Brainwashed: The use and misuse of neuroscience

Join New York Times columnist David Brooks as he engages the authors of “Brainwashed: The Seductive Appeal of Mindless Neuroscience” Sally Satel and Scott Lilienfeld, in a discussion of popular neuroscience.

Tuesday, June 18, 2013 | 9:00 a.m. – 10:15 a.m.
The next digital crossroads: Regulating competition in the Internet ecosystem

Please join us for a preview of the revised and updated edition of Jonathan Nuechterlein and Philip Weiser’s influential 2005 book “Digital Crossroads: Telecommunications Law and Policy in the Internet Age” (MIT Press).

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Tuesday, June 18, 2013 | 5:30 p.m. – 7:00 p.m.
Economic liberty and human flourishing: Perspectives from political philosophy

At this event, three expert panelists will examine this relationship from the perspectives of influential philosophers such as Aristotle, Alexis de Tocqueville, and representatives of the Scottish Enlightenment.

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Wednesday, June 19, 2013 | 9:00 a.m. – 11:00 a.m.
Neighborhood watch: A time to lead in the Americas

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Wednesday, June 19, 2013 | 12:30 p.m. – 1:45 p.m.
Is college worth it?

At this event, Bennett and Wilezol will present their book, higher education finance experts Richard George and Richard Vedder will provide discussion, and a coffee reception and book signing will follow.

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Wednesday, June 19, 2013 | 3:30 p.m. – 5:30 p.m.
Is Big Brother watching you?

Join General Michael Hayden (ret.), AEI’s Marc Thiessen, and other leading experts in national security for a panel discussion on the significance of the NSA leaks.

Thursday, June 20, 2013 | 1:00 p.m. – 2:15 p.m.
Balance: The economics of great powers from ancient Rome to modern America

Please join us for an event celebrating the release of Glenn Hubbard and Tim Kane’s “Balance: The Economics of Great Powers from Ancient Rome to Modern America” (Simon & Schuster, May 2013).

Friday, June 21, 2013 | 10:00 a.m. – 11:00 a.m.
Washington's ongoing assault on free speech: An address by Senate Minority Leader Mitch McConnell

In light of the emerging Internal Revenue Service scandal, Senator McConnell will again join AEI to comment on the use of government power to stifle speech and will propose solutions that protect the individual rights that are guaranteed to all citizens of the United States.  

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