Friday, November 13, 2009

The Fundamental Problem with Liberal and economics.

It is quite simple really. Liberals believe the purpose of a business is to employ people. Therefore regulating said business to force it to provide higher wages, better employee benefits, etc. for its workforce is not only the right thing to do, but is a moral imperative. This thinking however is fundamentally flawed. People start and run businesses to make money. From the little mom and pop store in a strip mall to the largest corporations in the world, their purpose is to make money and for the owners, CEO's and executives to become wealthy. A company that does not turn a profit will go out of business. Jobs that are created are a result of said company's quest for profits.

To raise taxes or to create more regulations that cost businesses more money is to essentially kill jobs. Consider the entrepreneur who opens his dream restaurant. After paying for food and operating costs, wages and other expenses the entrepreneur hopes to take what profits, if any are left, so that he or she will be able to provide for him or herself and hopefully get ahead financially. If, because of regulations or taxes, the business's profit margin is reduced or begins to lose money, the owner has two choices: 1) make cut backs to remain profitable or 2) go out of business.

Its really simple. If you cut taxes and reduce regulations on business, businesses will be able to expand, hire more people, turn greater profits and thus pay more taxes on said profits.

"In this present crisis, government is not the answer to the problem. Government IS THE PROBLEM." Ronald Reagan.

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No, there is no anti-Israel Bias at the NY Times.

Recently the New York Times published an Op-Ed of a Palestinian who describes the deplorable conditions that he says exist in Israeli prison...