Tuesday, August 28, 2012

Government Entrepreneurship Training?

By, Chris Rossini

I'm not making this up.

Government, the institution that coercively takes your money and then arbitrarily disperses it, is teaching entrepreneurship!

This same institution, that does not use price signals and does not use profits or losses as a guide, is going to teach you how to be an entrepreneur....For free!!!

BusinessWeek, which should be chewing this to pieces (but isn't) reports:
After Kim Osterhoudt lost her human resources job at a financial services firm in a 2009 downsizing, she tried to eke out a living selling homemade jam near her home in Belle Mead, N.J. To improve her odds of success, she enrolled last year in Entrepreneur University, a free, 60-hour, local entrepreneurship training program. Launched by the New Jersey Department of Labor in partnership with the nonprofit Intersect Fund, the program supports small business development in poor and distressed areas of the state.
Today Osterhoudt’s 18 varieties of jam are popular at farmer’s markets and distributed at a handful of specialty markets. Osterhoudt says her business is on track to hit $60,000 in revenue this year—double that of 2011—but she has yet to turn a profit and has been living off the proceeds of a home she sold shortly after she lost her job. Her goal this year is to pay back the $15,000 she withdrew from her retirement account in order to start the company.
Sounds about right.

Government taught her how to generate losses. Perhaps they're showing slides on how the U.S. Postal Service or Amtrak operate.

There's more:
Because these programs are new, their long-term economic impact remains unproven. That doesn’t bother Brian McGowan, former chief operating officer of the U.S. Economic Development Administration, who applauds the uptick he has encountered this year in local programs to encourage entrepreneurship.
Losses to the taxpayers for funding this charade?

Losses to the poor people that start a business after this education?

Don't worry about it! The important thing is there's an uptick in these types of programs.

Bottom line: The chance of government teaching you how to be an entrepreneur is about as likely as Donald Trump teaching you etiquete skills.

Want a real education on sharpening your entrepreneurial skills? First you have to learn how markets work. Learn about exchange, prices, the importance of profit & loss signals, and how central banks throw wrenches into the economy and create unbelievable distortions.

Read Rothbard for all of the above.

Then you'll at least be in the right mindset to start using capital to take advantage of potentially profitable opportunities.

You'll also understand that the very last place to ever learn entrepreneurial skills are from government.


  1. What will they think of next?
    Hypocratic Oath Courses - by Joseph Mengele
    Vegitarian Recipes - By Jeffrey Dahmer
    Responsible Investing - By Bernie Madoff

    You can't make this stuff up.

  2. Um... the Post Office and Amtrak are loosing money becuase of stupid regulations. I'm ok if they want to show slides on both so long as is part of the course where you teach the would be entreprenuers the effects of government regulations.

    1. Ah...the PO and government choo choo are losing money because of inefficiency, lack of need to innovate, no cost or profit structure, AND because of public pensions. Keeping a statist institution because nobody would like to use them or because innovation is making them obsolete.....are NOT reasons to romantically keep them publically funded just to continue to keep losing money....as they will....regulations or not. Its the laws and regulation that keep them from going bankrupt....as they should.....and return these and ALL services to the private sector.

  3. Starting a business is one thing, starting one that cannot generate enough working capital to at least pay the bills is reckless without an adequate funding source. If this is what the government is teaching people, it is setting them up for a huge and expensive failure.

  4. Retirement account! Sounds so wonderful!

  5. I'm guessing that at 40 - 50 hrs of the course must be spent on how to deal with all the government regulations that are in place to interfere with your ability to start a business in the first place.