Business and Freedom

Heckler - On Capitalism, Business and the Free Market

I'm aware of the suspicion that many have of big business, and the general disenchantment with the influence that business can have on the cogs and wheels of government. It’s puzzling to me. Why would one believe that business should not have representation and advocates in our government? In my view, businesses, both small and big, are a vital part of our nation, and the interests of business should have representation in government.

So many people draw an imaginary line of distinction when they think of business, as if it is somehow separate from all of us. There are only two ingredients in a society: the people and the government, and nothing else. But sometimes, you almost get the feeling that people see our society in three parts: the people, the government, and business. This perception is not true, at any level, when you think about it.

We are business. We are big business and small business. Business is how we use our skills and talents to turn our work into income and private property. Business is the means through which we self-actualize. Business is the conduit over which we channel our creative energies to produce wealth for ourselves. We own and operate the businesses in this country; business is not a separate force within society. Granted, many people may not directly own a controlling interest in a business, but they do most likely work for a private company. Even if you work in a corporation, you will probably have a 401k or other retirement fund. By owning stock in a 401k, you are a business owner and your returns depend directly on strong private sector business performance. Business is what makes it possible for us to dream, and then combine a great idea with hard work to realize our dreams.

In the last 2 years, ‘profits’ have been demonized in the media as something sinister and evil. I’ll never forget Hillary Clinton standing before the American people, berating the oil companies for their supposed greed and profiteering. She went on to say, “We’re going to take those profits!” Frankly, that has to be one of the most frightening statements I’ve ever heard coming out of Washington. Her strange, bold threat sounds a lot like something that would come from the likes of Kim Il Sung, Erich Honecker or Hugo Chavez, and not a prominent American presidential candidate.

Sure, the oil companies made record profits over the past decade. No one is denying that. Circumstances within the free market evolved to give the oil companies in this nation an advantage, and an opportunity to earn money. They did what responsible businesses do – they maximized their bottom lines. Where was Hillary Clinton is the early 80’s, during the oil bust, when the oil companies were facing bankruptcy? Throughout much of the 80’s, many of those ‘evil’ oil companies operated in the red. Where was Hillary Clinton when CITGO, Hugo Chavez’s Venezuelan oil cartel, walked away with billions in corporate profits? America is Chavez’s number one customer of Venezuelan oil, and this nation has poured billions upon billions into Chavez’s evil coffers, coffers that have largely supported his dictatorship, thuggery, and systematic destruction of the Venezuelan economy. You mean to tell me that Clinton would rather tax an American-owned enterprise than one controlled by our arch-enemy, Hugo Chavez? How dare a politician threaten to confiscate the profits of a legitimate American enterprise? It’s disgusting.

What floors me is that people cry out in opposition to corporate tax breaks, corporate profits, etc. Then, when those tax breaks don't pass, or profits are soft, the very people who complained about corporate profits then complain about losing their job because their employer could no longer afford to keep them on the payroll. It just makes no sense. But so often, populist currents rarely ever make sense.

I have personally witnessed the power of tax breaks. Several years ago, a company that I am intimately familiar with decided to expand. There were several cities on the short list, and the location that was ultimately chosen won because of a very attractive tax incentive package. The area was blighted with high unemployment, and the company was able to go in to that community and put over 1,000 people to work. Today, they are the second largest private employer in the city.

Every year in fourth quarter, companies often go into a hiring and capital expenditure freeze. Whether or not this happens is often directly related to the overall financial health of the company. If revenues and margins are strong throughout the year, then business can hire and make capital investments as necessary to support growth. If profits are bad, no hiring will be done and no money will be spent on growth and expansion.

If we want to do something about our nation’s unemployment problem, then we need to hope that business is making a profit and planning for future growth and expansion. We all rely on business for our livelihoods, and we should be looking for ways to make sure business in this country remains strong and thriving. If a corporation gets tax incentives, who cares if hundreds of people get the opportunity to work? When profits are strong, businesses will expand and hire new people to support the expansion, and our retirement funds will resume growing. If they're operating at a loss on the other hand, they lay people off and our 401k funds continue to tank. We need to get government out of the affairs of private enterprise, because my investments and job security decrease with every tax hike and regulation the government imposes on business.

If you want high unemployment and significant losses in your retirement fund, then stand around and complain about corporate profits, demand higher business taxes, and advocate for more federal regulation on business. If you do, however, I have one request. Please don’t whine and complain when you end up standing in the unemployment line with your pink slip in hand.