Technological innovation ignites economic growth feeding further innovation. But, has our relentless progress irrevocably tipped the balance from a virtuous circle of innovation and growth to a downward spiral of disaster and decline? We’re going to continue to drive, fly, throw away plastic, and tear down the rainforest. If we aren’t going to solve the problems we’ve created by regulating ourselves, we’re probably going to have to use technology — whether that’s to save species, or human lives, or to make sure that certain plants or coral reefs survive climate change. We don’t know the consequences of these future actions.
While it may seem tempting to target attractive market sectors and provide government-backed capital and direction, this typically does not end well. The efficient allocation of capital, demanding an appropriate return for given risks, is something private markets do extremely well. A handful of bureaucrats cannot match the collective wisdom of the capital markets, no matter how attractive the target.
WeChat has become the ubiquitous, full-service platform for communication and commerce in China. Essentially, the company has taken the mobile Internet and made it their own. The WeChat internet has a lot to admire — and emulate. While the United States sees big tech as a colossus that needs to be knocked down, the Chinese government saw tech companies as economic engines to be harnessed. They were right.