Price Controls, Busting Bonuses, and the Shaming of Profits Will Be the Death of Us All
Recently, we’ve noticed that our government leaders have been working very hard to bust bonuses on Wall Street. If a Wall Street firm has taken large amounts of money from the United States government, which is taxpayer’s money, then indeed, the government should have a say in the way the business runs things, as any shareholder would. But, when they extend that to other businesses that they do not have any financial stake in we have a huge problem and it is an attack on capitalism.
Also of note, we are finding that minority shareholders are now trying to put forth class-action lawsuits stopping the bonuses at other corporations, and the jury pools are tainted because the government and the media has projected that somehow bonuses are bad, evil, or even unlawful. They are not; bonuses are good especially when they are paid for performance.
Another problem that goes along with this is when the media or members of our legislative branch and Congress gives speeches condemning large corporations who are making too much profit. There is no such thing as making too much profit, because if they charge too much someone else will come along and compete against them bringing the profits back down and putting everything back into balance.
Free-market capitalism is self-correcting in this case. The problem arises when those same legislators have put forth so many regulations that there are so many barriers to entry that no one can compete with the same companies that are over-charging and they wouldn’t be overcharging the free market if they had competitors.
It is a matter of the government causing the problem and then claiming capitalism is bad for making a profit. Personally, I am getting quite tired of socialist leaning Democrats telling me that capitalism no longer works. Sure, it works it works very well and has made our nation the greatest economic powerhouse in all the world.
Capitalism doesn’t work when there are huge bureaucratic government interferences, which is what we have now. The federal government has created monopolies and barriers to entry preventing competition, and for them to claim that now the companies that they helped through regulation are making too much money is laughable.
Now, I think what we really need to do is reduce the salaries in Congress. These folks should perhaps be eating top ramen in little packages that come from China. And that notion that we should have price controls is ridiculous, because if there is competition you don’t need price controls.
Of course, if we are going to run a socialist government and micromanage every industry and interfere with every business and Corporation in our free market system using socialist methods and communist theory of control of production, then we are going to be very sorry with what we create.
Now, I’d please like to send everyone in the U.S. Congress a copy of Ayn Rand’s “Atlas shrugged” and why don’t you go pick up a copy in case you disagree with me, because you probably need like most Americans a little bit of extra education on how economics work, or quite frankly you shouldn’t be allowed to vote on these issues. Please consider this.
Lance Winslow – Lance Winslow’s Bio. Lance Winslow is also Founder of the Car Wash Guys, a cool little Franchise Company; http://www.carwashguys.com/history/founder.html/.