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The Exploitation of Entrepreneurs
Ludwig von Mises Institute ^ | June 18, 2010 | Aaron Smith

Posted on 06/19/2010 8:47:53 AM PDT by all the best

n our society of victims, entrepreneurs are blamed for many of the hardships that ail our economy. Whether it is because of high prices, low wages, or substandard economic conditions, they are often accused of exploitation in their quest for profits.

The real victims in our economy, however, are usually not workers who voluntarily enter contracts to sell their labor nor consumers who voluntarily purchase products and services but instead entrepreneurs who are involuntarily subjected to the not-so-invisible hand of our government caretakers. Somehow, it seems completely reasonable to overtly exploit entrepreneurs for their resources in the name of preventing the potential exploitation of anyone else.

Legislators often garner popular support for measures that exploit entrepreneurs by citing ostensibly alarming data: Exxon Mobile made $45.2 billion in profits in 2008 when gas prices eclipsed $4.00; they're price gouging! The average compensation of Fortune 500 companies in 2009 was $9.25 million, yet they're paying unskilled workers only $7.25; the minimum wage is too low!

While drawing such illogical conclusions wouldn't score a teenager any critical-reading points on the SAT, it does help legislators get bills passed in Congress.

(Excerpt) Read more at mises.org ...


TOPICS: News/Current Events
KEYWORDS: economics; economy; entrepreneurs
All government interference in the economy is an attempt to controvert reality. It is a childish game of let's pretend. Let's give people money and lets pretend they are prosperous. Let's tamper with the free market mortgage process and pretend that everybody has earned a house. From corporate bailouts to minimum wage laws it's all a game of pretend. It's all a vain attempt to cheat reality and always fails because reality cannot be cheated. In the end this world of make believe has to come crashing down.
1 posted on 06/19/2010 8:47:53 AM PDT by all the best
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To: all the best

http://www.friesian.com/rent.htm

Rent-Seeking, Public Choice, and The Prisoner’s Dilemma


2 posted on 06/19/2010 8:53:05 AM PDT by griswold3 (\)
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To: all the best

“Let’s give people money and lets pretend they are prosperous.”

Well, as Blago and other corrupt petty politicians have figured out, the recipients of such illicit gains actually can become prosperous. However, it is manifestly true that a SOCIETY cannot become prosperous by picking each other’s pockets, as transfers are a zero-sum game.

A related “illusion” is that government “creates” jobs, ignoring the fact that the private sector would have created the same number or more jobs had the identical resources not been taxed away to fill public coffers.


3 posted on 06/19/2010 8:57:40 AM PDT by DrC
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To: all the best

Our Fed knew from day one that we could not afford welfare, entitlements, they cannot claim ignorance. So they borrowed and borrowed, and borrowed, till it now stands at one hundred trillion dollars.

Ross Perot told congress, and us, outright that if congress passed the GATT agreement that we would hear a large sucking noise of jobs leaving the USofA, and that is exactly what happened.

Now that these nations are far richer than we are, these corporations cannot be threatened to move back, even if they lost our market, our buying power. They are making plenty of money from the rich nations that have been created using the federal money we paid for with our tax dollars in regards to their inventions and technology.

Are we really suppose to blame people with money who invest in the Stock Market, to invest where the money is? It isn’t here. Why invest here under an oppressive government whose regulations strangle growth? It’s a losing deal. Even if the doors were thrown open and regulations ended tomorrow the profit would still be too great overseas to bother with this nation.


4 posted on 06/19/2010 9:09:05 AM PDT by MissAmericanPie
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