06 September 2011

Economics 101. Yes, again.

I'm going to keep posting articles like this until people finally get it.

In a free-market economy like ours, it's the entrepreneurs who create jobs.  They do this by starting new businesses, and by expanding businesses that are already up and running.  If you want to create more jobs, you create an environment in which entrepreneurs will thrive.  They'll take it from there, because creating jobs by starting and expanding businesses is what thriving entrepreneurs do. 

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.
RTWT.  Wondering where the jobs are going?  Why no one's hiring, expanding or investing?  This is why.  And this state of affairs will continue until we STOP DOING STUFF THAT DOESN'T WORK.  Yes, folks...it really is that simple.

1 comment:

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