Patents against prosperity

By W.W. | IOWA CITY

AMERICA is still in denial, but among economists and wonks I think the hard truth is settling in: we're not as rich as we thought we were and our prospects for future high growth rates aren't looking so great. America's last best hope for breaking free from what Tyler Cowen has called "the great stagnation" is the discovery of new "disruptive" technologies that would transform the possibilities of economic production in the way the fossil-fuel-powered engine did. As it stands, growth, such as it is, depends largely on many thousands of small innovations increasing efficiency incrementally along many thousands of margins. Innovation and invention is the key to continuing gains in prosperity.

Zero-sum "win the future" rhetoric notwithstanding, it doesn't much matter whether the advances in new technology occur in China, India or America. Nevertheless, it remains that America is the world's leader in technical invention, and continues to attract many of the world's most inventive minds. That's why it is so important that America remain especially conducive to innovation. And that's why America's intellectual-property system is a travesty which threatens the wealth and welfare of the whole world. It may seem a recondite subject, but the stakes couldn't be higher.