Capitalism Works, If Government Would Just Get Out Of the Way!
A seemingly accelerating trend with many Americans is to look with skepticism and a jaundiced perspective at business, capitalism, and the profit motive. In spite of efforts by some to rewrite history, those of us who are students of history recognize that capitalism made America the economic superpower that it is. And the more we allow government to interfere in our economy, the more we move toward a fascistic system where government controls the means of production.
Most of us even work for a small business driven by the profit motive. Those firms, created and managed by entrepreneurs, market and sell products, provide advice and services, and fill the needs of people from all walks of life. They pay us to fill a specific function within the company to help them service their customers more efficiently and cost-effectively. And most of them pay another 30% of our salaries or wages in the form of benefits to help retain quality employees. And according to Arthur Brooks of Syracuse University an amazing 89 percent of us are very satisfied or somewhat satisfied with our jobs.
As a matter of fact, according to the Small Business Administration, small businesses represent 99% of all employer firms, employ half of all private sector employees, pay 45% of total U.S. private payroll, generate 80% of new jobs annually, create more than 50% of nonfarm private GDP, comprise 97% of all identified exporters, and produce 26% of the known export value to our GDP.
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, share-holders) facilitating their business ventures. Remember, if they over-price 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.
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 Bernie Sanders, who nearly captured the Democrat nomination, (and would have if the DNC had not colluded with the Clinton campaign) garnered the support he did as the self-avowed socialist peddled collectivist promises for populist electoral support.
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.” “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.”
PragerU has produced an insightful clip that explains this perfectly. It can be seen here.
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 is the solution for future economic growth and security.
Associated Press award winning columnist Richard Larsen is President of Larsen Financial, a brokerage and financial planning firm in Pocatello, Idaho and is a graduate of Idaho State University with degrees in Political Science and History and coursework completed toward a Master’s in Public Administration. He can be reached at [email protected].
“TRY IT, YOU’LL LIKE IT” Mikie did and so do all others that realize there isn’t anyone that starts a business witih the idea of making no money. Love may keep the world going ’round, but capitalism keeps the economy going round and up so it can support that love.
Any other type of an economy gives ye old government all the power…..and smothers growth while discouraging work resulting in a very crowded lower class of citizens….besides it’s so very American…and why we tower above other nations.