Tuesday, November 10, 2015

News Flash! Rich People Know How to Make Money!

Capitalism is Unavoidable

Capitalism is a system in which people use the resources they have to create more resources. As long as the Sun is shining, this will continue to be possible. There is nothing wrong with this. It is a good thing.

The more freedom people have to make voluntary transactions, the more ambition, perseverance, innovation, thrift, and accomplishment will be rewarded.


Rich People Know How to Make Money, and That's Good

Free market capitalism often means that rich people continue to make more than poor people. What's the alternative, really? The alternative is that the rich people stop making money. That would be disastrous, including for the poor. Yes, if a person has one dollar and another has ten, the person with ten dollars is going to have eleven dollars and the other is going to have $1.10 if they both make a 10% return on their investment. What is the problem with that???

Of course the rich are getting richer. That is because, first of all, they are still doing the things that made them rich in the first place. If they got rich in high-paying jobs, and they are still in those jobs – SURPRISE! – they are still getting paid. Secondly, almost all of them invest their money in ways that will earn even more money. That is good, because it means they are investing in companies and ventures in ways that allow other people to earn a living and perhaps get rich, too, and it is paying off. Thirdly, they tend to have good financial habits, such as not spending more money than they make.

Some want us believe that there is a growing gap between the "rich" and "poor". Don't believe it. There is growing SPECTRUM. As there should be. The rich are not taking more of the pie, they are making the pie bigger. Why should the rich stop getting richer? Should they stop working and sit on their money? That won't be good for anyone.

Most rich people are rich because they have provided something other people highly value, or a high number of people value enough to pay for it. With free markets, this is all voluntary on the part of all participants.


You Can Be (or Could Have Been) Rich Too

We all have something to offer others. Most of us can take steps to increase what we have to offer others. In a free market, we exchange what we have in abundance for something we need or want that someone else has in abundance. It is best when we can do this directly, without the interference of anyone else. Either party to the trade may choose to delegate for the sake of efficiency (for example, they are better at making something and not so good at actually closing a sale).

The poor of today don't have to be the poor of tomorrow. With free markets, they can be middle-class or even rich by being wise with what they have to offer. We have countless examples of people who have come to this country with nothing and have become middle-class or even rich, and even more examples of their children doing so.

Ever notice that many of the richest Americans came from modest beginnings, and many of those dropped out of school before getting a college degree? How many of them are immigrants or the children of immigrants? When you consider how many of these people started out poor or in the middle class, and you add in the people on the list whose parents started out poor or in the middle class but left behind considerable wealth, it becomes very clear that our nation has been one of unparalleled opportunity for those who are willing to work hard, sacrifice, and innovate.

We are not a nation of the permanent classes of the "haves" vs. the "have-nots". If you are born into a low-income family, you are not destined to be poor all of your life, especially if you are ambitious and take responsibility for your life. Students currently counted as poor will likely not be poor a few years down the road. A child currently listed as poor will almost certainly not be poor very long into his or her life as an adult as long as he or she follows a few rules:

1) Avoid crime
2) Avoid substance abuse
3) Get regular exercise, eat right
4) Complete high school, and go as far in education/training as personally possible without delaying employment
5) Take the best honest job offered, and do not do anything to get fired or quit until a better job is secured; seek promotions
6) Spend less than you make, avoiding financing/loans; use the surplus to save, invest, and insure
7) Don't raise babies out of wedlock; don't marry until finished with education (undergrad level) - and marry someone who also follows these rules; don't divorce.
8) Join a community - whether a religious congregation or some service or fraternal organization, where people cooperate to help each other and network.

Leftist polices make #5 more difficult, because the policies make it less likely employers are going to take the risk of hiring or the risk of investing.

The poor in this country have access to "free" or "inexpensive" (in quotes because these are usually subsidized by others) housing, clothing, transportation, food, medical care, communications, education (including community colleges and state universities), libraries, fire protection, police protection, legal representation, recreation and entertainment, and many other things, making them part of the global One Percent. Using government force to make the "rich" give even more money to the "poor" (especially without a direct connection between the "giver" and the receiver) takes away incentive for the poor to become less dependent on the government, and also prevents them from getting direct counseling, mentoring, or other forms of aid from someone who knows how to make money.


The Role of Government

Now, it is true that the more power we cede to government and concentrate in federal government, the more the rich can unjustly manipulate the system to their benefit - to do things like get tax money for their business, which is taken by force from others, or get restrictive laws in place that make it harder for competitors to succeed and grow. But such "crony capitalism" is a good reason for limiting government and for federalism, and against socialism and centralizing government.

The Left wants us to think that someone else making more money than us is stealing it - unless, of course, they are a unionized government employee or a Hollywood celebrity or George Soros. The Left also wants us to think the solution to this problem is giving federal government more power. Don't believe it. That does hurt the middle class and the poor.

Government should only be involved to prevent/correct fraud and certain other forms of theft, and some monopolies.

The more restriction on free trade, the smaller the percentage of law abiding people that will be able to make the most of their resources. The less freedom in the marketplace, the more the fruits of capitalism are reserved for the elite and establishment few. The more that power and money are usurped and centralized in government, the more the politically connected/wealthy will be able to manipulate the system to their advantage.

The easiest way for the powerful to manipulate the system to their advantage is to centralize government power and increase government power. Conversely, the more power individuals retain, the more opportunities there will be for someone of modest origins to better their financial situation.

The freer the marketplace, the better, and the more opportunity for upward mobility.

Rather than providing something useful to other people and honestly competing, and thus enjoying the benefits of capitalism, too many people set their sights on using government force to take from others to provide for themselves. They are not parties to a voluntary trade, but often insist on a say in the terms and conditions of that trade.

The Leftists would have you believe that the rich are just lucky – that they’ve "won life's lottery" and are living it up at your expense, unfairly enjoying the high life while you struggle and suffer. The Leftist Democrats want you believe that the only way you'll ever be successful is with their help, so you'd better vote for them and support them.

Don't believe it. We need polices, especially the limiting of government, that will keep our nation a beacon of liberty that fosters free market capitalism. We should be encouraging growth through encouraging investment, efficiency, innovation, voluntary cooperation, and hard work, and letting people enjoy the fruits of their investment and labor, instead of finding new ways to confiscate or them or restrict the voluntary transactions.




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