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Friday, December 30, 2011

Europe 2012

If the bulk of the economy is currently based on small business, how can this economy ever "recover" to even a shell of its former self if there's no longer any real incentive for anyone to go into business?
Entrepreneurs will tend to rely on small, less risky, cash only, capital investments, and thus, small production facilities, small workforces, "under the radar" tax payments, no benefits to part-time employees, and the other techniques needed to maintain their enterprises.
While this may result in a fairly good living for the entrepreneur, and perhaps even for his/her favored employees, it's not the stuff of which enough capital is generally produced to develop community wealth.
The main obstacle to renewed economic stability is not lack of printed paper money to be loaned out at interest, and which will only add to future financial instability, but rather, the great fear of mindless government confiscation of any small profit the entrepreneur may accidentally acquire in this very risky business climate.
If this is true, it's clear there will be no recovery, at least in rational terms, until thousands of government regulations which destroy personal incentive are removed from the books.
I can't see this happening anytime soon. In fact, each day brings the news more and more governments are INCREASING taxes, enforcement personnel, regulations...all in the name of maintaining "services" such as government payrolls, pension plans, various w elfare systems, but all of which further destroys entrepreneurial incentive. Therefore, I must also conclude there'll be no stability of the economy any time soon either.
From all evidence, we're now seeing the real-life results of yet another experiment in socialism concluding predictably, but on the largest scale in history.
We now have a population trained almost to a person to believe in the omnipotence of "big daddy" government. So much so, it's abandoned the principles which formerly gave it great strength...principles of self-sufficiency, moral belief in hard-work and enjoying the rewards of this, principles of thrift, respect for the property of others...on and on.
With a belief in "cradle to the grave" so-called "security" offered by glib politicians who have no idea how to deliver such "benefits", this former noble population has been reduced to a nation of beggars demanding eternal handouts...handouts which are dwindling as fast as the former forests of Easter Island.
Again, as I see it, it's not a problem of printing more paper money. It's a problem of individual thinking in terms of personal morality.
Printing money, especially in the form of computer digits, can be done in an instant. Building character and building a nation of solid financial structure takes generations.
The relative value of both is readily apparent.
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