As a business owner, I get very frustrated with the econ-mageddon we face in this country. Economics and the free-market system must be very confusing to many Liberals. I say that because they say they have the answer to the problem but are just plain wrong. While I make it no secret that I am not voting for Obama this election cycle – my reasons have to do with economics and the reality of things. The left would have you believe that the only way to grow an economy is by taxing the rich, growing government and then letting investment come from the middle class and government. The problem with this ideology is simple, the government is spending far more money than we could ever collect in taxes from both the wealthy and the middle class combined. That means the government would have very little resources available to invest in growing the economy without continuing to grow the deficit. The other problem, once there is no wealthy class – guess who the government taxes??? They tax those with the money – al-la-middle class is now the wealthy.
So, for the sake of simplicity I offer this analogy. We have chickens (they represent the wealthy), the eggs (they represent jobs), and the farmer (who represents government). As long as we have chickens we have eggs. If the farmer comes in and kills the chicken, that chicken can no longer produce eggs. The more chickens the farmer kills, the less eggs we have. The less wealth we have in this country – the less we have to invest in jobs, technology, innovation and healthcare… you get the picture… And the less money we collect in income tax. At some point the farmer kills all the chickens – has no eggs to sell and now he needs to go borrow money from the bank so that he doesn’t lose the farm. Now the farmer is in debt and has no chickens or eggs.
The history of this country was formed on the backs of hardworking individuals who put hand to plow and built industries and employed people and grew this country from 13 colonies to one of the greatest nations in the world. All on the foundation of God, Freedom and Free Markets. The founding fathers, in their brilliance, created a nation where the opportunity to live, love, work, and build wealth was available for everyone – we call it life, liberty and the pursuit of happiness. Pursuit means to go after – it does not guarantee success. What I do know about success is that it comes with many failures and difficult seasons. Something worth having is worth fighting for – worth working hard for. Success is hard work, but the pay offs can be immeasurable. Rather than killing the chickens (or in our case taking all the money from the wealthy – the ones who invest and build industry) we must find a way to encourage investment and job growth again. This is not done with more government programs – this is done with less government intrusion. I am not saying we get rid of the laws already available to us for safe work environments and fair pay – I am saying, get out of the way. The more money people have – the more that is available in tax revenues… the less money (chickens) we have the less tax revenues (eggs) we have. Seems simple enough to me… but then again, I’ve invested my life in understanding the free market system and for a season worked for government. I’ve seen both sides of the pasture and can tell you – there is no prosperity in a government dominated economy.
Philip A Foster, MA is Founder/CEO of Maximum Change Inc. Maximum Change, Inc. is a Leadership and Business Consulting firm located in Middle Tennessee offering business & leadership consulting, speaking and training. Philip Foster is a Thought Leader in Business Operations, Organization and Strategic Leadership. Facilitating change through the design and implementation of strategies, strategic foresight and strategic planning