As I have stated before recently I have do not seem to have the time to write entries to this blog as frequently as I want. I hope you will bare with me on the time between entries, I will try to get them out a fast as I can.
As I have mentioned in my other post, I believe that the government policies create by progressives not only do not solve the problems they are designed to solve, but actually make most of the problems they try to solve worst. This is no more evident in the area of business and the issues that progressive complain about, big corporations, high executive pay, and lost of jobs in the US. I believe that each of these problems have at their root the policies put in place by progressives to control big business, and solve these very problems. But instead what these policies and regulation have done is make these problems only worst, and I believe that this might have been the goal of both the government and the businesses in the first place. They each gain in this game and in the process we the citizens lose out.
They achieve this by perpetuating several myths and using several methods. They are successful in what they do because our education and media do not anymore work to educate and inform us. Add to that the fact we have our own lives to live, which makes it hard for us to learn the truth about what is going on, on our own. So let us start by addressing these myths one by one and see how they are actually used to promote more government regulation, which is, believe it or not, the goal of both the government and big business.
The first myth and the biggest is that we have a free market economic system. This not total true, while we do have a pretty free market system, there are other markets in the world that are freer then what we have here. We have lots of regulation that are suppose to control business and protect us, but actually have the opposite effect, and in the process eliminate freedom in the market place. Now you can not have a truly free market system, just like you can not have a truly free society, for two reasons. The first of these is that government exist to protect peoples rights, most notably life, liberty and property, and the government should protect us when those rights are violated by a business. The second reason is that government also exist to enforce agreements or contracts between parties, and when those agreement are violated government is needed to solve these disputes.
See government keeps society from falling into anarchy and lawlessness, and it does the same for the the market place. Where the problem comes into play is when government, in trying to keep the market place stable, goes too far and moves towards totalitarianism in the market place. At that point politicians start using the laws they writes to make businesses conform to their social goals and in their arrogance try to manage the economy. When this happens companies react by trying to minimize the effect on their business activities, by trying to influence these same politicians. This quickly morphs into businesses using this influence to gain an advantage over their competition.
This leads us into our second and third myths. The second one is that progressives do not like big business and they are are for the smaller man. The third myth is that big business does not like government regulations and wants instead a free market. Both of these are false, both progressive and business have the same goal, control of the market place. We do not see it because they both hide the truth from us, and we do not have the time to seek it out.
Here is an example of how they work together, but makes it seem that they are working at odds with each other. Let’s say the government passes a new law that says every company that earns over 2 million dollars in profits must comply with a regulation, which involves filling out monthly forms and other paperwork. The 2 million dollar limit is supposedly to give a small business an advantage over the larger ones, but here is what really happens.
The large companies puts their lawyers, which are already are on retainer, on the job of making sure they comply with the new regulations, which they used their influence to help write in the first place. The small companies do not worry about it, because it does not apply to them. The issue comes when you look a the company that is just over the 2million dollar limit. A company of this size only has 3 choices, stop growing which leads to stagnation and death. Comply with the regulation, which means their expenses have to go up, and now they either have to grow faster to make up the lost revenue and shut their doors if they can not. The final option is to realize that they are basically stuck, and sale themselves to the larger company.
Basically the results of all three is that as time goes on the smaller business are more likely to fail as they grow. The larger business will buy them and in the process get bigger. The results basically will be the complete opposite of what you were told. We were lied to, because if we knew the truth we would of fought the new laws.
The progressive play this game because they really do like big business as long as they control them. See it is easier to control 30 big business, then 3000 smaller ones. There are only 30 books to review, 30 companies to tax and only the production of those 30 companies to control. Having to deal for the short term with the 30 powerful executives is a small price to pay to achieve their utopian society.
Business executives like this model also, when they think about things in the short term and how to increase those short term profits. Now keep in mind that making a profit is not bad, because making a profit is the goal of every citizen in a free society. It is the way that each and everyone of us acquire the things we need and want. When you go to work and get a pay check the difference in what you pay in taxes, gas, food, clothes and other expenses that you spend so that you can get up and go to work, and what you make is your profit. You spend that profit on other things such as entertainment, electronics, education and other things you want either for enjoyment or to improve yourself.
But when making a short term profit is the only goal, things will not work out right for anyone in the long term. I believe this way of thinking started when the practice of people starting in the mail room and working their way up, was short circuited by the hiring of college graduates into executive position. When this change was made we lost some very important things. We have lost loyalty to the company and we lost experience. Both of which have created a lot of the problems we have today, like the mortgage failure. In this case and a lot of cases in the past people broke rules or business practices that they should not of broken, because they did not have the wisdom and experience to know the reasons behind the rules. (Just a note here, it is the progressives that say the young should ignore their elders, instead of respecting them as was traditional before.)
In the mortgage industry crisis, there is a rule or good business practice, that you should not invest in something unless you can determine it’s true worth. But a lot executives of business and banks invested in derivatives based on bundled mortgages, even when they had no ideas what their true worth were. They broke that rule because they did not have the wisdom to understand why that rule existed. Instead they just wanted that short term profit to make the books look good, get their paycheck and get out. They had no loyalty to the company, share holders or even the employees. They did not have that long term outlook that business really need.
So basically because of peoples’ short sightedness and desire to control us, I believe that end up with bigger and bigger businesses. In the next post I will touch on how the policies of the progressive create the high salaries of executives that they complain so much about. I have touched on some if before, but in the next post I will go into detail.
Independence Caucus
