Category: Economics

Yeah that’s right. Businesses do not exist for the benefit of the employees…..they exist for the benefit of the owner. Businesses are not contemplated with the idea of seeing how many employees can be hired. Businesses are contemplated for the purpose of providing an income to the owner. Employees are an expense just like fuel, utilities, insurance, equipment, etc, etc, and nobody goes into business to see how much can be wasted on unneeded expenses.

Businesses are the personal property of the owner…..not the government, not the employees, or omnipotent moral busy bodies. Also, businesses have no legal, moral, ethical or compassionate obligation to pay a living wage, whatever that means. Lastly and most important, nobody, no level of government, no court of law can force someone to open, or keep open a business. Treating businesses as the enemy while claiming to be a friend of the employee is an irreconcilable contradiction, and this is the dilemma faced by those who want to use businesses as their benefactors by proxy.

Economics is not difficult to understand, one only needs to understand human behavior. The more difficult something is made to do, the less you will get of it. The more costly something is made to do, the less you will get of it. If employers are forced to provide innumerable benefits to full-time employees, how long do you think they will remain full-time?

Operating a business requires a lot of time, energy, resources, uncertainty, and risk, and believe it or not there does come a time when it just isn’t worth it. Those who advocate for lavish employee benefits seem to think that the customers will just keep coming. Businesses not only compete against each other, but must also compete against the customer desires to spend as little as possible, which means keeping prices low. Businesses can’t force customers to purchase their products. Customers can choose a different supplier, or they can simply eliminate the product or service from their budget. Economics, like the United States Constitution is not as difficult a thing to understand as the eggheads want you to believe.

The very simple answer to that question is……freedom. How much economic growth can you accomplish while imprisoned in a jail cell? Well, not very much. President Trump has done more to expand freedom from government tyranny than probably any president ever has. The problem with the Obama years is that like all leftists, he is an economic illiterate, and was a shackler of the economy. Leftists don’t view the economy as a way to innovate and move forward as a society, but rather they view it as a social engineering project. They view it as a way to get even, which is why statism in its various forms never works economically….never.

 President Trump on the other hand has been seen as a liberator to entrepreneurial and business innovation which is why the economy started improving even before the tax reform package was signed into law. The tax reform package is already paying dividends in the form of bonuses to employees, and will encourage businesses to bring off-shore money back to America for investment in the American economy and employees such as the announcement by Apple to bring $252b back to the United States, give employees $2500 in stock bonuses, and create 10’s of thousands of jobs. I can’t wait for the looney left to demonize that.

Economics really is not very difficult to understand. You don’t need to understand the velocity of money, price elasticity, factors of production, aggregate demand or any other of those useless terms. There is one economic term yet to be listed that is very important. That term would be the Penetration Factor that describes how Americans take it where the sun doesn’t shine because of politicians and economists who actually believe they can lead, guide and direct an economy of over 300 million with trillions of economic decisions made daily to a desired destination. It simply is impossible.

The most important thing to know when I comes to the economy is human nature. Human nature dictates everything. It dictates that if you make something more difficult or costly to accomplish, you will get less of it. Which automatically means the reverse. If you make something easier and less costly to accomplish, you will get more of it. Let’s consider the Obama care law that required all employees who worked over a certain number of hours, or worked for businesses that exceeded a certain number of employees, were to be given health insurance. Well, what was the result of that law? Employers kept employee hours down, and kept the employee count below the triggering threshold. Unintended consequences of laws that shackle employers are not unknown consequences. An adversarial relationship between government and business will never result in a thriving and bustling economy. Contrary to what our Liberal pals think, it is impossible to be a friend to the employee while being an enemy to the employer.

Socialism is all the rage among leftists these days. Bernie Sanders is always talking about how he wants democratic socialism, which I guess is the type of socialism in which you vote to steal someone else’s property. Also, you have heard how socialism always fails, and the likes of Venezuela is trotted out with a video of persons digging in the back of a garbage truck looking for food. Why does socialism always fail? It’s not as difficult to understand as you might think. You don’t need an economics degree to understand economics. You don’t need a degree of any kind actually. All you need is an understanding of human behavior.

Socialism is anti-freedom and always fails for two primary reasons. First, is that it doesn’t respect personal property in all its forms which destroys personal initiative. Personal property exists in many forms. This includes, but is not limited to tangible, financial, intellectual, and physical labor. Whatever it is that you call yours, is your personal property. Put more specifically, it destroys the desire to create wealth, because If there are no guarantees that what you have created is yours to keep, then what’s the point?  

Second, it destroys personal responsibility. If you know the government is going to take care of you, you will have absolutely no motivation to work to take care of yourself. Not being a burden to others is one of the most moral things you can do, but just waiting on that check provided with someone else’s blood, sweat and tears is much easier.

Prosperity doesn’t grow on trees, nor does it spontaneously erupt from nothing. Prosperous societies are created with the free exchange of excess personal property that is created with personal initiative and responsibility, and this improves the lives of everyone. Socialism fails because it halts the free trade of personal property, because there is very little personal property to trade. When free trade stops, prosperity stops. When everything belongs to everybody, nobody is responsible for anything. A society prospers when every person possible is working tirelessly to improve their situation to the maximum degree possible, which will in turn improve the situation of others. It’s just that simple.