Capitalism Works, If Government Would Just Get Out Of The Way

 

By Richard Larsen.

 

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As a matter of fact, according to the Small Business Administration, small businesses represent 99 percent of all employer firms, employ half of all private-sector employees, pay 45 percent of total U.S. private payroll, generate 80 percent of new jobs annually, create more than 50 percent of nonfarm private gross domestic product, comprise 97 percent of all identified exporters, and produce 26 percent of the known export value to our GDP.

Yet every time new governmental regulation is imposed on businesses, the costs increase. Whenever the government increases taxes on companies, the costs increase again. In order to stay in business, they must pass those costs on to their customers, or find other ways to reduce costs — such as eliminating jobs. That’s why it makes no sense to tax companies since we all end up individually paying their taxes via increased prices for their products and services.

And it’s not just small business that makes our quality of life what it is, but the brother of small business; BIG business. It’s not an evil concept to sell things that people want and need at prices that most people can afford, so they can sell as much or as many as possible, applying the economies of scale. And they do so with a profit motive in order to share their success with those who ponied up the capital (investors, silent partners, shareholders) facilitating their business ventures. Remember, if they overprice their widgets, they price themselves out of the market. If they underprice their widgets, they’re not going to remain viable, and will have to lay off employees and won’t be able to pay all those taxes the government is requiring of them. Then their employees will have to hope they can find another widget company to replace the job they lost

The media, Hollywood and even some of our fellow citizens bash “big pharma,” big oil and big retailers like Wal-Mart. But in reality what do those “big” evil companies do? They provide needed products and services at reasonable prices, and jobs, enabling our national economic engine, and our quality of life, to keep chugging along. They have limited control over much of their expenses, but to be able to continue doing what they do, they achieve a modest profit to ensure their viability in future years, and allow us to have a job.

When politicians promise “free stuff” at the expense of taxpayers, they’re doing nothing more than attempting bribery – they promise free stuff for our votes. And it’s not their free stuff. It’s stuff they promise to use governmental coercion to forcibly take from others, in order to redistribute to those they’re bribing.

It’s no wonder that Sen. Bernie Sanders, who nearly captured the Democrat presidential nomination (and likely would have if the Democratic National Committee had not colluded with the Clinton campaign) garnered the support he did as a socialist peddling collectivist promises for populist electoral support.

And Hillary Clinton is no less ideologically aligned with socialistic solutions. A disciple of Saul Alinsky, and the first architect of a socialized health care system for the U.S., she has made some brash statements over the years that reveal her ideological convictions. Among her many anti-capitalist statements are these nuggets:

“We’re going to take things away from you on behalf of the common good” (June 29, 2004).
“It’s time for a new beginning, for an end to government of the few, by the few, and for the few and to replace it with shared responsibility for shared prosperity” (May 29, 2007).
“[We] … can’t just let business as usual go on, and that means something has to be taken away from some people” (June 4, 2007).
“I certainly think the free market has failed” (June 4, 2007).

The brilliant economist Thomas Sowell has philosophically put the failed socialist ideology into proper perspective. “I have never understood why it is ‘greed’ to want to keep the money you’ve earned, but not greed to want to take somebody else’s money,” he has said.

Also this: “Much of the social history of the Western world, over the past three decades, has been a history of replacing what worked with what sounded good.”

And for academics who are smitten with the failed ideology: “Socialism in general has a record of failure so blatant than only an intellectual could ignore or evade it.”

Too many of us rely on fallacious populist typecasts of what business and the profit motive do, rather than relying on our empirical observations of their contributions to our quality of life and economic viability. We allow the media, Hollywood or anti-business kvetching to taint our perceptions with a failed yet idyllically appealing narrative of “equality” or “social justice.”

PragerU has produced an insightful clip that explains this perfectly

 

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The profit motive, capitalism and free enterprise are the backbone to our economic system, and as such are the key to future growth and prosperity, individually and collectively. Government encroachment and increased regulation stymie future potential growth, our quality of life and our job security. It’s time for Americans to quit buying (with their votes) what self-serving politicians promise for them. Less regulation, less taxation, less government spending and less government control are the solution for future economic growth and security.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by the owners of this website.

 

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