Here is an economy message from Justin O. Smith.
JRH 12/1/12
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Let Everyone Prosper
By Justin O. Smith
Sent: 11/27/2012 4:27 PM
It is obvious to a vast number of Americans that the divergent gap between the amount paid hourly workers for their labor is far disproportionate to that paid in profit margins and salaries and bonuses to CEOs, however, the answer is not found in higher tax rates, because no matter how high a tax is placed on companies it is always offset by higher consumer prices. If America is to remain a free-market capitalist system, at some point in the near future companies will necessarily have to create a better business model that partners labor in their efforts and presents a more balanced and equitable distribution of the net profits gained across each quarter; and, while I tend to view unions as organizations that price themselves out of competition in free markets, initially this was their mission as they attempted to close that gap.
Government can never force the closer of such a gap without completely destroying private businesses, because most businesses will simply shut down if they are not allowed to distribute their profits as they see fit, because it is their capital that started the business...their capital at risk...and since it is their private property, they do have the right to do with it exactly as they see fit; the worker actually risked nothing to start that business.
Obama would like to control all private business, and we have seen him too readily attempt to control certain aspects of our business world by picking winners and losers in the energy field as he subsidizes "green energy" technology through already failed companies, such as Solyndra, and works to utterly destroy the coal and oil industries. The only way that government could ever close the gap is by reducing America to a command economy, which sometimes seems to be Obama's intent, and should this ever occur no one would have any real wealth, as we would all be reduced to the lowest common denominator in poverty, with only the elite ruling class garnering the bulk of the nation's wealth.
Yes, I believe in a compassionate society that helps those who truly cannot do better, but we do not owe lazy people or people of low ambition a better living simply because they do not wish to expend the necessary energy to study harder in school, or try harder once they enter the work force, or because they simply have adopted an entitlement attitude and expect a great paying job to fall out of the sky and into their lap. Far too many in today's America are now expecting something for nothing!
While the gap is vast, the beauty of a truly free market and capitalist society is that each and everyone of us can attain great wealth if we keep pushing through each failure until we achieve that success; usually the people who try, try again have become wealthy, but one also needs a modicum of intelligence and an idea for a business of one's own combined with a decent level of ambition and the social grace and acumen to make the necessary business contacts. No one has ever said it was easy, but interjecting government to "level the playing field"...to make it easy for everyone...in the end only damages everyone in innumerable ways. Redistribution of the wealth is not a function of government no matter in what manner it is accomplished, and it should never be a final destination for any government that wishes to see a vibrant expanding economy, because history has shown time and time again that it has always failed wherever it was attempted with devastating effects on the society.
Hopefully, all America will get their heads together and start utilizing more pragmatic methods towards our nation's real economic woes, but when Obama effortlessly spends nearly $9 trillion in four years with few results and a failed Stimulus that only distributed 6% back into the economy and Ben Bernanke is printing money at the Fed like there is no tomorrow, we have far more difficulties in this nation than the salary gap, especially when one considers the $100 trillion unfunded debt that has accrued throughout our history.
A larger centralized government, which is where Obama and the Progressives are taking us, will only serve to take more of the poor and middle class and even the wealthy's earned income...their private property...and serve only to eventually further limit individual Freedom through over-regulation, just as we are witnessing through Obamacare; just look at the roaring 20s, when the government was small and regulations had been curbed back to only the barest of necessity and EVERYONE PROSPERED!
Even Pravda recently quoted Putin as saying that Obama was going down the path towards socialism.
By Justin O. Smith
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