I don’t listen to Ayn Rand. Blah. I don’t listen to anyone exclusively. Hunt for my information, first.
1) The great depression wasn’t ended by the new deal. It was ended by WW2. The country kicked into overdrive because it HAD TO. The new deal didn’t save our economy, it prolonged the depression. Just about every economist has proven a: Kenysian theory flat out doesn’t work and b: increasing taxes during an economic slump doesn’t help things. FDR did both, and it exacerbated the problem. The economy is a self-correcting machine, as it is driven by profit and sustainability. When you start introducing elements that remove the fear of failure, you start removing the incentive to compete and operate efficiently.
I will bring into example Ford Motor Company. They didn’t accept bail-out money, so they said to their union “Co-operate or we all go down in a burning heap.” Surprisingly, they are now a profitable company! With the bailout money, they wouldn’t have been able to use that argument.
2) Another factor is monkeying with the natural order of things. Forcing mortgage companies to accept risky investments because it’s “Morally Correct” is foolish. If someone doesn’t make enough money to pay back their loan, why should they get the money in the first place? There are stories abound about people making less than 30k a year getting 200k+ mortgages. Where’s the sense in that? But because liberalism said “That’s not fair to poor people,” instead of asking what’s practical and fair to /the rest of us/, they introduced a situation where banks were forced to do something they wouldn’t normally do. So what did they do? They found a method to ensure they would make a profit on these people they KNEW were going to default on their loan. Bring in the ARMS.
That’s where I get the lassez-faire model. I don’t mean that government should provide oversight to ensure adherence to laws that are on the books. But they shouldn’t impose “moral” guidelines for businesses who’s job is to make a profit. What does the government know about making a profit!? There’s not a single area in the government that turns a profit; Government only consumes taxpayer money, it does not and cannot generate wealth. And with the majority of congressional members being LAWYERS, they are significantly less qualified on telling what businesses should do with their money than those at the head of the organizations. And this brings me to point 3.
3) Sitting on the cash are organizations that have turned a profit over the past years. I don’t know how long they’ve been saving. Probably for a while. Many companies keep cash reserves for rainy days. The company I work for (keeping my mouth shut) is impacted by the financial regulations and Obamacare recently forced on american business. It’s been asked of our CEO at town-hall meetings “How is our health insurance going to change?” This was asked earlier this year and even this fall. The answer: “I don’t know yet.” It’s that very uncertainty that’s is killing job growth. Employers have no freaking clue what it is going to mean for their expense ratios. If you don’t know if an employee is going to cost you $35k a year or $50k a year because of health-care, regulatory, or other innane and stupid provisions in these bills, you aren’t going to hire anyone. You’re going to hold your cards and wait and see how it’s going to all pan out. You won’t double-down and hope that it will be okay. Because you could end up costing thousands of employees their jobs if you go under if you overextend yourself.
It’s not that I don’t think we should keep an eye on business. I just think that the government shouldn’t dictate what those businesses should run themselves. They lack the knowledge and experience, and that only hurts employers in the long-run.
I don’t listen to Ayn Rand. Blah. I don’t listen to anyone exclusively. Hunt for my information, first.
1) The great depression wasn’t ended by the new deal. It was ended by WW2. The country kicked into overdrive because it HAD TO. The new deal didn’t save our economy, it prolonged the depression. Just about every economist has proven a: Kenysian theory flat out doesn’t work and b: increasing taxes during an economic slump doesn’t help things. FDR did both, and it exacerbated the problem. The economy is a self-correcting machine, as it is driven by profit and sustainability. When you start introducing elements that remove the fear of failure, you start removing the incentive to compete and operate efficiently.
I will bring into example Ford Motor Company. They didn’t accept bail-out money, so they said to their union “Co-operate or we all go down in a burning heap.” Surprisingly, they are now a profitable company! With the bailout money, they wouldn’t have been able to use that argument.
2) Another factor is monkeying with the natural order of things. Forcing mortgage companies to accept risky investments because it’s “Morally Correct” is foolish. If someone doesn’t make enough money to pay back their loan, why should they get the money in the first place? There are stories abound about people making less than 30k a year getting 200k+ mortgages. Where’s the sense in that? But because liberalism said “That’s not fair to poor people,” instead of asking what’s practical and fair to /the rest of us/, they introduced a situation where banks were forced to do something they wouldn’t normally do. So what did they do? They found a method to ensure they would make a profit on these people they KNEW were going to default on their loan. Bring in the ARMS.
That’s where I get the lassez-faire model. I don’t mean that government should provide oversight to ensure adherence to laws that are on the books. But they shouldn’t impose “moral” guidelines for businesses who’s job is to make a profit. What does the government know about making a profit!? There’s not a single area in the government that turns a profit; Government only consumes taxpayer money, it does not and cannot generate wealth. And with the majority of congressional members being LAWYERS, they are significantly less qualified on telling what businesses should do with their money than those at the head of the organizations. And this brings me to point 3.
3) Sitting on the cash are organizations that have turned a profit over the past years. I don’t know how long they’ve been saving. Probably for a while. Many companies keep cash reserves for rainy days. The company I work for (keeping my mouth shut) is impacted by the financial regulations and Obamacare recently forced on american business. It’s been asked of our CEO at town-hall meetings “How is our health insurance going to change?” This was asked earlier this year and even this fall. The answer: “I don’t know yet.” It’s that very uncertainty that’s is killing job growth. Employers have no freaking clue what it is going to mean for their expense ratios. If you don’t know if an employee is going to cost you $35k a year or $50k a year because of health-care, regulatory, or other innane and stupid provisions in these bills, you aren’t going to hire anyone. You’re going to hold your cards and wait and see how it’s going to all pan out. You won’t double-down and hope that it will be okay. Because you could end up costing thousands of employees their jobs if you go under if you overextend yourself.
It’s not that I don’t think we should keep an eye on business. I just think that the government shouldn’t dictate what those businesses should run themselves. They lack the knowledge and experience, and that only hurts employers in the long-run.