Ma and Pa Kettle: Chairman BaO's Economic Advisors

By: Bastiatarian

As I listen to the goofballs in the Chairman BaO administration, and to the other members of the Borg that support them, drone on about how taking more money from businesses will stimulate the economy, I have been reminded of this scene from an old Ma and Pa Kettle movie.



Ma and Pa were just coming up with more than was actually there, but the American "liberal" is so disconnected from logic, and so ignorant of the functioning of mathematics, that they truly seem to believe that you get a higher number through subtraction, and that when applied to economics, the less capital a business has, the greater ability it has to expand its business.

It's very simple. If I'm a business owner, I am interested in benefiting from current demand and in creating new demand. To do this, I first need capital. If there is a demand for my product, and I cannot invest in the required facilities and human resources, I cannot enter that market. If I am already conducting business in that market, insufficient capital will prevent me from expanding my business. Further, insufficient capital will prevent me from creating new demand, whether in the same market or in the form of a new market. Naturally, this means that I cannot hire new employees, and will likely be in danger of having to reduce my workforce further.

Not only will the consumer be unable to purchase a variety of products (due to the lack of income resulting from my inability to hire him), but the consumer will be unable to benefit from my products, which, if desired, would have to be purchased elsewhere. Now, if they are cheaper elsewhere, this benefits the consumer, but my inability to place products on the market will result in a smaller supply. Accordingly, if there is demand, the price will naturally be higher, thereby harming the consumer.

Every penny taken from me by the government in tax (whether in the form of corporate tax or some other tax posing as a "fee") reduces employment, reduces available products, raises prices, and lowers the standard of living. This not only harms my company and those who would have otherwise obtained employment from me, but also other businesses that would have benefited from exchange with those consumers, thereby exacerbating the problem described in the previous paragraph. This continues to expand in a vicious circle, competition decreases, prices increase, buying power decreases, the remaining companies are no longer able to remain in business, more people lose their incomes, and the government steps in to take more money from the few survivors, and the hellish nightmare continues until the society falls.

The only way for the government to stimulate the economy is for the government to be completely uninvolved in the economy. The only legitimate role of government related to the economy is that of the enactment and enforcement of reasonable, common-sense laws prohibiting fraud and others types of theft. The only taxes that should be imposed by the government are those directly related to the protection of each individual's right to his life (including freedom from physical harm imposed by others), his liberty (physical bondage), and his property (that which at the same time is the product of his life and his liberty, and also which makes both possible).

The "safety net" of the government is nothing more nor less than a smothering tarp. Governmental involvement in the economy always has been and always will be death to that economy.
_______________________________________________

(I'd like to express my gratitude to Les for asking me to become a contributor.)

Comments

  1. Excellent post! Perhaps in time the modern liberals (progressive collectivists in reality) might get it. But I ain't holding my breathe!

    As Rand stated very accurately and succinctly:

    “The only way a government can be of service to national prosperity is by keeping its hands off.” -Ayn Rand

    ReplyDelete
  2. >Perhaps in time the modern liberals (progressive collectivists in reality) might get it.

    If they do gain an understanding of basic mathematics and economics, and accept those principles, they would, by definition, cease to be "progressive" collectivists.

    ReplyDelete

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