Tuesday, September 6, 2011

An Economic Lesson Even a Liberal Can Grasp

September 6, 2011

An Economics Lesson Even a Liberal Can Grasp

By Herbert E. Meyer

"Think of it this way: if you want more milk, create an environment in which cows will thrive.  And just as it makes no sense to say you want more milk but oppose cows because they're smelly, dirty, and leave their droppings all over the place -- it makes no sense to say you want more jobs but oppose entrepreneurs because when they succeed they often wind up with more money than the rest of us.  You cannot have it both ways."

"Entrepreneurs thrive when they are confident about the future.  Every time an entrepreneur makes a decision to start a new business, or to expand his business by launching a new product or service, he or she is putting his own money -- and his employees' futures -- on the line.  So an entrepreneur wants to know what taxes he's going to pay in the years ahead.  He wants to know what his costs will be for high-priced expenses such as his employees' health care.  He wants some certainty that the regulations in place when he launches that new product or service won't change six months later and destroy his investment overnight.  And an entrepreneur wants some confidence that the overall economy will be sufficiently robust to provide customers who'll buy that new product or service and by doing so enable the entrepreneur to earn back his investment and make some profit besides."

"Why did the world's largest and most powerful economy create zero jobs in August?  It's because our country's entrepreneurs lack confidence in the future.  They cannot calculate what taxes they'll pay, they cannot calculate their costs for health care, they have no idea what new regulations may suddenly appear that will cripple their investments, and they don't believe the customers they'll need to buy their products and services will be there."

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