THE ECONOMIC CYCLE WITHOUT GOVERNMENT INTERVENTION
Typically, when people work, they agree to exchange their labor for money, the opposite side to this equation is their employer gets labor(productivity . The result is beneficial for both sides, the employee, who has no capital invested is satisfied, the employer is equally happy because he is able to turn the labor into a product or service which he sells at a profit. Mind you that the employer does not divide the profit with the employee do to one overiding fact, that is the employer has capital invested and needs to make a profit on the investment. The employee does share in the success of the outft by getting periodic raises, bonuses and benefits. So we have a simple analyis, one without the hands of government interfering with the production process and free markets.
One may ask, how does demand come into the equation. First of all, companies or individuals would not endeavor to sell a product or service unless there was demand for it. This is the basis of natural supply and demand. We make note that government has not set its heavy hand in our example. What happens when they do? Two things, they increase the cost of the product and by doing so decrease the demand. How is this possible. By taxing the the company on its profits, the return on capital is less, therefore funds necessary for future investment become scarce and secondly the price goes up because of the costs of government levied taxes. The tax is an appropriation of profits transferred to a bureaucrat who is overpaid while producing nothing. Effectively it is a GOVERNMENT SHAKEDOWN; not any different than a Mafioso payoff.
Don't get us wrong, we are not for the elimination of all government taxes or regulations. Who wants an environmental disaster, if you know what we mean. Who wants an unsafe drug to come on market without adequate testing. Who wants power plants built with shoddy materials and faulty design. We can go on and on. But we must highlight that many things the Federal government does are duplications of state and local governments. One prime example is Education and another is Agriculture.
Because of the bloated bureacracy inefficiencies exist to a degree not seen for a thousand years. Government now is the employer of last resort. They are driven by the socialist progressives who see the need to have the hand of government in everything we do. As Hillary Clinton said, "it takes a village to bring up a child." Nothing can be further from the truth. The truth is that LESS GOVERNMENT IS BETTER GOVERNMENT. How do we know this, look at the great recession we are now in, with all of the 3 trillion dollars poured into the economy throught tarp, talp and scalp, not one job has been created. Government incentives to buy houses and automobiles only stole sales from future demand. Now we are seeing a massive green incentive program for electric vehicles. It is noteworthy to mention that a $7500 federal credit, not to mention thousands of dollars of state credits only transfer the cost on to the non electric car buyer. Where else do you think the money comes from. And the reason for these incentives is because those who need them to survive are not able to sell a product at a price point to create natural demand for them to turn a profit. Once again, they seek government intervention into the market to help them survive. A scheme that is been going on for too many years behind the backs of our Patriotic citizens.
We are now at a point where the time has come to throw off the chains of Big Government, if not now when?
One may ask, how does demand come into the equation. First of all, companies or individuals would not endeavor to sell a product or service unless there was demand for it. This is the basis of natural supply and demand. We make note that government has not set its heavy hand in our example. What happens when they do? Two things, they increase the cost of the product and by doing so decrease the demand. How is this possible. By taxing the the company on its profits, the return on capital is less, therefore funds necessary for future investment become scarce and secondly the price goes up because of the costs of government levied taxes. The tax is an appropriation of profits transferred to a bureaucrat who is overpaid while producing nothing. Effectively it is a GOVERNMENT SHAKEDOWN; not any different than a Mafioso payoff.
Don't get us wrong, we are not for the elimination of all government taxes or regulations. Who wants an environmental disaster, if you know what we mean. Who wants an unsafe drug to come on market without adequate testing. Who wants power plants built with shoddy materials and faulty design. We can go on and on. But we must highlight that many things the Federal government does are duplications of state and local governments. One prime example is Education and another is Agriculture.
Because of the bloated bureacracy inefficiencies exist to a degree not seen for a thousand years. Government now is the employer of last resort. They are driven by the socialist progressives who see the need to have the hand of government in everything we do. As Hillary Clinton said, "it takes a village to bring up a child." Nothing can be further from the truth. The truth is that LESS GOVERNMENT IS BETTER GOVERNMENT. How do we know this, look at the great recession we are now in, with all of the 3 trillion dollars poured into the economy throught tarp, talp and scalp, not one job has been created. Government incentives to buy houses and automobiles only stole sales from future demand. Now we are seeing a massive green incentive program for electric vehicles. It is noteworthy to mention that a $7500 federal credit, not to mention thousands of dollars of state credits only transfer the cost on to the non electric car buyer. Where else do you think the money comes from. And the reason for these incentives is because those who need them to survive are not able to sell a product at a price point to create natural demand for them to turn a profit. Once again, they seek government intervention into the market to help them survive. A scheme that is been going on for too many years behind the backs of our Patriotic citizens.
We are now at a point where the time has come to throw off the chains of Big Government, if not now when?


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