By Larry Leonard
Pope warns global economic system near collapse...
I don’t know the country all that well, but suspect there is a difference between typical leadership and the unwashed masses. They can farm bad land, growing food like olives and grapes on rocky dirt patches the size of postage stamps. They like family and eating well and regularly elect local politicians that favor redistribution of income. It involves a basic misunderstanding about money.
Some kinds of Money for a few, breeds money for everybody
Capitalism is called capitalism because it involves capital. That’s what they don’t get. It takes a lot of money to make a lot of money. Many Americans don’t get that, either. That’s why America has been so sluggish in recent years. The big companies — the ones that make industrial creations that employ thousands and make billions, have been keeping their reserves in foreign locations because to bring it back to America would be financial suicide. The taxes would eat those reserves for breakfast.
You don’t need tax dollars to found empires. It’s private money that knows how to pick winner ideas.
If Obama and the Dems would eliminate those taxes, that money would flow back in the form of a big financial recovery and a booming economy. That’s what the Pope doesn’t get. Greed and profit are not the problem. The Pope and the natural distribution tendency of the church is too short sighted to grasp the simple truth. Greed without capital investment is bad. Greed with capital investment is good. It’s like a gun. You can use the same instrument to get two totally different results — one very good and one very bad.
The truth is you can measure the success and economic well-being of a nation by the percentage of millionaire industrialists. They make jobs to get money. If you don’t have many millionaires, or if you do, but they’re the wrong kind, the nation will slumber in general poverty until you free the investment capital to go hunt jobs. It all depends on productivity — building cars, making gizmos, roofing houses, all private stuff, of course. That’s where the real money is located.
The French President
He was elected on his redistribution promise following mostly union riots in the streets. The French love lots of holidays and big government-ordained retirement programs. They’re like the Italians in that regard. That sort of thing if ordained, removes investment capital from the banks. Folks with ideas for products can’t get the facilities, equipment and raw materials to build their inventions because the money is taken from the rich industrialists and given to the populace.
Edison, an idea man, made history and industrialized America with his ideas.
You understand, I assume. When money is moving around the private sectors, it is used to finance jobs. Private jobs that don’t require public tax financing. Good jobs provide good salaries (and tax revenues) that allow citizens to make the money they want without taking it from government revenue sources. There is only one government revenue source. Taxes or some form of legal theft. Private jobs generate tax revenues, government jobs cost tax revenues.
Detroit is flat broke and rusting into dust. Government spending and unions did it. It’s there for you to study. Compare it to places like the new South, including Texas. Compare it to the latest tactic in the state of New York — new business startups get a decade before they have to pay corporate taxes. The last figures I saw had New York number two behind Texas in new startups.
What New York is doing is proving my point. Capitalism’s simple rules work. When you apply them, people can find work.
The Pope could use them in Italy. The French president could use them in his country, and they would kick things into gear. Obama could use them here, and they would send new economic life blood through America’s veins.