Posts Tagged ‘business’

When did it become wrong to believe in individual people and right to believe in collectivist governments?

I know many people don’t like Ayn Rand or her philosophy (which was partly too difficult for even her to live by), but she had the right idea: keep governments out of private business. That’s the way the country was run for a long time.

Cut to today. Now we have big corporations (not all, but some), lobbyists, & special interests that have politicians in their back pockets. Case in point: the NRA. They recently pledged support for a campaign finance reform bill after being awarded exemption from the new rules through a provision they authored (see my previous post: Special Interest & The Government).

Google & Verizon recently published what they believe should be the guidelines for regulating the internet…rules that would hinder their competitors. Even the FCC, which is in favor of internet regulation, came out against these guidelines, as did a huge swath of the internet community.

This may seem like a rant against business, but it’s not. It’s a rant against government & businesses getting too cozy. When the government picks the winners, the populace loses. Look at the current “Summer of Recovery”: 9.5% unemployment, 131,000 net jobs lost last month (though the private sector has decreasingly added jobs every month this year), GDP growth that gets revised downward more often than not, etc. And this is after the trillions of taxpayer dollars that were pumped into certain companies, banks, and government departments to stop the downward economic spiral.

So where’s the recovery? Most major downturns are followed by quick recoveries. Look at the depression of 1920-1921: tax cuts, spending cuts, and some other noninterventionist policies paved the way for the roaring 20s. By contrast, the Great Depression lasted over a decade despite (because of) government interference, and unemployment didn’t see a sharp decline until America got into WWII & the draft was instituted.

Empirical evidence shows the less government interferes, the faster & more sustainable the recovery. Governments picking winners & losers means everybody loses.

Got off on a tangent there. You’ll see that happens a lot. Anyway, my point is that anybody that believes in giving power to the individual to do what he wants, with the caveat that he harms no one other than himself, is now considered an extremist.

Belief that we are free to live our lives our way, again- harming no one other than ourselves, instead of the government proclaiming how we should live is a crackpot. Not giving us control over our own bodies, what goes in our bodies, what happens in our bedroom, who we take to our bedroom (consensually and both being of legal age), how we spend our money, what we buy…these are a few examples of how government interferes with our lives. And we’re crazy because we want to take responsibility for our own lives & not have that responsibility taken away by government?

Then call me crazy.

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Government And Business

Posted: November 13, 2009 in business, politics
Tags: , ,

Government and business have always had a symbiotic relationship. Government benefits from the tax revenues of businesses and business benefits from the protection of government, bankruptcy protection being one example. Until recently.

The relationship has turned into a parasite/host one. But who’s the parasite and who’s the host? That’s the real question and one I hope to answer here.

Let’s start by defining what a parasite is. A parasite is an organism that feeds off another without regard for the other’s health. In light of recent actions by the government, inspired by FDR’s New Deal, the government has become parasitic. With the second highest corporate tax rate in the world, the U.S. government has increasingly become dependent on corporate tax revenues while imposing increasingly stricter regulations hampering their ability to freely conduct their business.

But not all businesses suffer under these conditions. The ones who can afford it hire lobbyists to protect their interests against the government by lobbying for special favors. This does nothing but give the government the power to pick winners and losers. It becomes an endless cycle.

This brings up another question: how do you end an endless cycle? The first step should be to ban lobbyists. This needs to start on the business end. If businesses want to improve their public image, they need to end their lobbying practices. Once they’ve shown they’re serious about ending this practice, the government, in order to prove they have the public’s interest at heart, should ban lobbyists altogether.

While this would be a good start, it won’t eliminate the problem. The government would still be able to raise corporate taxes. My solution? Cap corporate taxes at 25%. This way businesses would be able to plan their budgets knowing the maximum they would pay in taxes. That would also help them when deciding on expanding and/or hiring new employees. This would give employers the protection they need while possibly increasing tax revenues for the government.

While this two step solution is far from perfect, it could go far in bringing business and government back to a symbiotic instead of parasite/host relationship. If anyone else has other suggestion I’m open to them.