By Arkadiy Fridman
Citizens Magazine, President
Most economic fallacies derive from the tendency to assume that there is a fixed pie, which one party can gain only at the expense of another.
We have a system that increasingly taxes work and subsidizes non-work.
The world runs on individuals pursuing their self interests. The great achievements of civilization have not come from government bureaus. Einstein didn’t construct his theory under order from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way.
The economic prosperity of a country and its citizens’ standard of living are very
dependent on industrial and high tech power. America, Germany, Japan and South Korea
all have basically sound economies and a high standard of living because they have advanced industries with companies that include Boeing, IBM, Apple, Ford, General Motors, Chrysler, Mercedes Benz, BMW, Krups, Sony, Toyota, Toshiba, Honda, Samsung, LG, and many more. These nations have excellent banking and insurance systems as well as stable political systems. They all compete with one another, but face serious competition from China, India and Brazil which have populations that provide cheap labor.
First, must begin by electing public officials who are truly advocates of the free market system. We need this fundamental economic principle at every level of government and the voters must make sure that their elected officials stay true to their campaign promises of creating a pro-free market environment with a business friendly tax system.
Second, we must address the shortcomings of this nation’s education system. Our colleges and universities are dangerously unbalanced with an abundance of progressive economists. Since these are the institutions that produce our future economic leaders, we must see to it that students are exposed to a balance of economic theories and philosophies by increasing the number of conservative economists in our institutions of higher education.
Our young people, the next generation of leaders, must understand how a free market works. They must know that much of America’s greatness comes from the strength of its middle class. It is the same corporations labeled as evil by many that provide the jobs enabling Americans to enjoy a middle class lifestyle. Government jobs are not the answer. Ironically, the more “evil” corporations we have, the more Americans will be employed in positions that support a middle class lifestyle. Of course, corporations don’t have a monopoly on job creation. Collectively America’s small businesses (typically under1,500 employees, but including the local dry cleaners with seven employees and corner fruit and vegetable store with three employees) are America’s largest employer. While these smaller businesses do provide some middle class jobs, many of their positions pay sub-middle class wages. However, they are an important part of a free market − providing much needed goods and services − and function as an entry point for workers who will advance as they obtain experience and become part of the middle class.
Third, government unions must realize that it is to their members’ advantage to have a country with a balanced budget. Their demands must be rational and consistent with economic reality. Deficit spending will lead to the devaluation of our dollar and propel our great nation in the direction of becoming a third world county. Private unions need to understand that the businesses employing their members must be fiscally healthy for all their members to keep their jobs. Small businesses and corporations can only function so long with red ink on their balance sheet before payroll size is negatively impacted.
Bail outs might appear to provide a quick fix, but they are the wrong way to go. Taking money from one group of people (hard workers) and giving it to another group does not address the fundamental problem and creates a scenario that cannot be supported by this nation. It will bring about the collapse of both our economic and political systems.
If we follow these principles the question of how to motivate companies to return to America will be moot. Our economic environment will be sufficiently fertile that they will want to be here to grow their businesses, and as their businesses grow so do the number of middle class jobs.