They’re getting what they deserve.
The latest in a long line of missteps and failures, cop-outs and poor choices that is the multiple bank failures and bankruptcies and bailouts and now the payback.
President Obama is looking to recoup the cost of the banking bailouts from those few banks that haven’t yet repaid what they’d taken from us.
Can’t say I blame him in this case. I’d want my money back too, especially if my shopping list was as long as his.
Unfortunately, the bailout money was taken from me, you, and all the other productive members of this society to pay for the failures of the financial flops. And now the recouping fees will come from us too.
That sock under the mattress is looking better by the minute.
There are many misconceptions standing in the way of informed consent on the part of the American Electorate.
Bugbears and villains and bogey-monsters are trotted out each election cycle to herd the voting populace into the desired frame of mind.
One of the common scape-goats (ab)used by many is the spectre of “Big Business”. And not merely content to blame big business, the abusers often employ shake-down tactics when they need additional revenue.
After all, nobody likes their boss, and everybody knows businesses are endless sources of greedy men with far too much money, right?
Sticking it to “the Man” is the favorite sport in much of America, and it’s bred and grown in an environment free of logic and fact into a monster few can avoid.
Well, here’s one shot.
Business does good for people.
It’s not that they hold your hand and sing Kumbayah, or even that businesses that contribute financially to causes we agree with are good.
This is a blanket statement without conditions: The average business in America does good.
What is good?
Good is a quality of action or intent that brings about, supports, encourages some reasonable benefit to another.
Me winning the lottery is not good. Yes I get tons of money, but that money to one not capable of handling it wisely will with great consistency, harm me and cause me greater damage than were I not to have such largess.
Me working and earning a reasonable wage is good. I earn the money and therefore know its worth to me. I use that value to trade for other things of value which have greater good to me.
Now what just occurred? Each of the players in that last paragraph exchanged something for something else.
What is that called? It’s an economy.
Let’s look at it closer: The business I work for values my work more than a certain amount of money, so we trade. My work for their money. But I can’t live eating money or in a house made of money, so I trade the money for other things I consider more valuable than the actual cash, usually with other businesses such as landlords, grocery stores, utility companies, etc.
Each of us has something we can trade for something else and it is the constant trading and exchanging throughout America that creates the immense wealth we have.
If you think you have little and you live in America, you’re most likely very, very wrong. And this pernicious lie, that we have little, that helps fuel the constant badgering that businesses ought to do this and that and owe us one thing or another.
There are plethora ways the government inhibits business, and in each and every situation where regulation and restriction purport to keep businesses playing “fair”, it is the consumer, you and I, who are hurt most.
In order for you and I to survive we must efficiently and effectively trade what we have for what we need, hopefully increasing the value of what we have in order to trade it more efficiently and for more.
Education is one key way to increase our value. By increasing our skill, our versatility, our ability, through learning and practice, we increase our value to those we’d trade our abilities to. We make a higher wage when we have more skills.
Looking at our small economy described above, government inhibits the economy, making exchanges more difficult, by taxing. By taking away percentages of the money value being used in the trade, they lower the value of our abilities. When we give a business our labor in exchange for an agreed-upon amount of their money, government takes a significant percentage of that money given to us in the form of income taxes.
They also tax the business itself, not just our wages. In fact, America has some of the highest business tax rates of the industrialized world. The government takes around one-third of businesses reported Net Profit.
Do you want to know why businesses try to write off so many expenses? Because for every dollar they cannot right off as a valid business expense, the government will take 30 cents.
What would happen if the government took 30 cents of your pay check? Well, unless you’re making very little, the government very well may be.
So maybe a better question is: What if you made 30 cents MORE for every dollar you currently make?
Let’s say you make 40 thousand dollars a year now. What would you do with 52 thousand? $12,o00 extra per year would add up significantly. A house payment in just a few years, the kids in private schools (or home schooled, grin), a new business you start yourself.
Instead, the government takes it.
I don’t begrudge the government a fair share of money. After all, government is necessary in a fallen world. And government has reasonable and rational expenses. And they are immense, relative to each of our individual budgets.
But when the government tells us it knows, better than we ourselves do, how to do things which could either be left well enough alone or by private industry and a knowledgeable populace. Then coerces us into giving it an exorbitant amount of money to perform those services. That is not right. And it hurts us.
A business must, by nature, make more money than it spends. It must be profitable in order for it to stay in business. When people talk about windfall profits and how we ought to tax businesses making more than there fair share, they illustrate only how imbecilic their own level of understanding is regarding the economy.
When a business operates effectively and efficiently and makes an immense profit, those large profits entice other businesses into the same market. When multiple businesses operate in the same market, they must give reason for their consumers to choose them over their competitor.
Competition drives prices lower, as this is the most visible way to differentiate ones product. Competition also drives quality up, as a second, very visible differentiation.
So because a market was allowed to become lucrative, the consumers have better access to cheaper and higher quality products. Sounds great to me.
And it’s not just looking on the outside, at the balance sheets of the business and on the store shelves, at the price tags.
Those businesses that make more profit are able to employ more and more skilled workers to further improve their products.
Sure, this is a sunny picture. But in the market, averages work out in favor of the sunny picture. Your job may indeed suck, but have you tried looking for one that doesn’t?
It may not be the best time, in the present economy, with government ham-handed handling of the economy stifling the recovery and prolonging this downturn. But there are still companies looking for workers.
Maybe leaving the big city, with is stifling regulation on top of already onerous federal meddling causes most businesses to fail or move away, to a smaller city which is more willing to lower it’s regulation and encourage businesses to build and hire is what needs to occur.
But when you hear a politician or government bureaucrat tell you that businesses must pay “their fair share”, remember that business may be employing you with the money the government wants to take.
And what the government takes, it does not give back readily.
Business Friendly means employee friendly.
Employee friendly means you have a job. A good job. One where the employer has the means to take care of you and compensate you well.
As for me, I’m already paying my fair share and more, and I’m getting fed up.