Why Isn't the US Government Funding Research?

thesandbender writes "The recent post about GM opening its own battery research facility led me to wonder why the US government is pouring billions into buying companies instead of heavily funding useful research. You can give $10 billion to a company to squander or you can invest $10 billion into a battery research and just give the findings to the whole of the US industry for free. From a historical standpoint, the US government has little experience with commercial enterprise ... but has an amazing record for driving innovation. The Manhattan Project and the Apollo moon missions are two of the pinnacles of 20th century scientific achievement, yet it seems to me that this drive died in the '70s and that's when the US started its slow decline. To be true to the 'Ask Slashdot' theme, what practical research do you think the US government should embark upon to get the most return for its citizens and the world?"

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You're full of shit.

[copponex]

From the Brookings Institution.

That Canadian banks are more closely, or carefully, regulated is fairly well-known. The specifics, however, deserve more attention.

The Canadian regulatory edifice is more centralized. There is no provincial equivalent to America's state-chartered banks. All of Canada's banks are federally chartered and overseen by federal agencies. One government-owned entity -- the Canada Mortgage and Housing Corporation (CMHC) -- plays a dominant role in shaping mortgage default-insurance policy. It and five other government bureaus in Ottawa -- the Department of Finance, the Canada Deposit Insurance Corporation, the Bank of Canada, the Financial Consumer Agency, and importantly, the Office of the Superintendent of Financial Institution -- set standards, coordinate the overall regulatory structure, and enforce it with sanctions. The Superintendent, for instance, has the power to remove miscreant bank directors and senior officers.

http://www.brookings.edu/papers/2009/0423_canada_nivola.aspx

The Commodity Futures Modernization Act of 1999 basically overturned Glass Steagall. Take a look at any housing bubble chart you'd like. When did the spike start? About the same time the deregulation fantasy took effect, and corporations knowingly created bad mortgages and passed off the bad debt as good debt because no one had their eye on them. In summary, they knowingly created huge leveraged risks in order to pocket huge comissions and leave someone else holding the assets. If you can come up with a more plausible explanation, please go ahead.

Re:What research we should do

[crmarvin42]

This effect is why you see so many exciting scientific reports, like "Scientists cure 10 kinds of cancer in mice with white blood cell treatment!" or whatever, that never even go into human studies or trials, much less make it to the drugstore.

you could not be more wrong. The reason that you have these kinds of reports is that the scientists doing the research are not the ones writing the press releases, never mind the actual articles that get published. Most employees in the press and in corporate/university press offices are not scientists. They are Humanities majors, and don't know shit about how science actually works. Terms like Goodness of Fit, Extrapolation, and the difference between conclusions and implications are lost on these people. Their job is to make headlines, not report the facts accurately.

2) Potential medicines or treatments that may be extremely useful but cannot be patented and so never get funding for research, because the company who spent 15 million to do the research would immediately get outcompeted by other companies who wouldn't have to recoup the research investment. Hundreds of these exist. For example, scientists discovered decades ago that the hormone progesterone dramatically increases the speed of wound healing (first noticed when it was observed that pregnant mice heal faster than other mice). It has never been studied as a potential treatment for wounds, however, because progesterone can't be patented.

Progesterone is a steroid hormone, and as a result has anti-inflamatory properties. The reason that it aids in wound healing is that it suppresses certain components of the immune system. Fine if there is no contamination of the wound because it prevents inflamation from causing the wound to get worse before it gets better. However, if there is bacteria already present then this is a bad idea, becase the infection will do even more damage that the attenuated immune response will take longer to control. There is no need to look at progesterone within the scope you describe because we already understand how it does this, why, and why we shouldn't use it in most cases. In cases where we do want to suppress an overactive immune response, there are other drugs (many not under patent) that physicians prefer to use.

I'm not knocking the idea of government funded health research, but I can assure you that they already do that. Most biomedical research in this country is funded directly by federal agencies to the tune of several hundred billion (if it's not now up into the trillions collectively) dollars a year.