One of the interesting tidbits from the special report on America's competitiveness included the prediction by a number of economists that the cheap energy from natural gas from shale is worth a half-percent per year in GDP growth. We are still the biggest investor in R&D in absolute terms. Even the government schools run by the states area undergoing significant change, although, agains, California is not mentioned.
Seventeen now offer vouchers for use in private schools to some students or give tax breaks to people who donate to scholarship funds. Thirty-eight are experimenting with new pay structures for teachers or principals, often with a performance-related element.
Because immigration law is fully in the hands of the feds, it is not a bright spot. I have covered the idiocy of our current policy in this space many times. The absurdity of a very low limit on H-1B visas (85,000 per year), one of my major complaints, is highlighted in this series.
In her dystopic novel Atlas Shrugged, Ayn Rand touched on this theme, but imagined a world where those responsible for the dynamism of capitalism gave up. What she didn't considered in that novel was that technology and innovation might outpace government's efforts to screw things up, making government increasing irrelevant. If you we buy into the latter thesis, then we see rearguard action, like limiting the intrusion of the ACA, as helpful. Such actions give the private sector enough breathing room to invent a better solution to delivering health care. Potentially, the delivery of health care under an alternate model might become so economically attractive that people would forego the need for anything but catastrophic health insurance, mooting the entire effort of controlling medicine by controlling the health care insurance industry. If such an event happens, it will start with the well off experimenting with alternate means of receiving health care and might spread to most of society. Then government regulators will be off in search of something else to kill off, even if they are never fully successful.