Competition inspires action and the drive to become the best. Right sided economic structures promote capitalism and therefore, inspires competition. With this type of economy set in place, with little government interference, and no special tax cuts, everyone tries to make a profit, and as big of one as they can. This means that they will do everything they can to make their product more appealing than their competitors, this can be done either by improving their product, or by reducing the price at which it is sold at. Ultimately, making the product as appealing to the customer as possible. As a result, more people will buy that product, and get better value for their dollar. Also, capitalism prevents stagflation, which is inflation that hasn't been antagonized by an action in the economy.
With everyone fighting to earn a buck, they are creating a stronger economy while doing so. Everyone is encouraged to work, and with the competitive nature of the economy, people who slack off, in other words, people who hurt the economy, will suffer.
Monday, November 8, 2010
Tuesday, November 2, 2010
How the Rich Help the Economy
Simply put, the rich help the economy by creating businesses, which provides jobs for society. By being prosperous, a business will gain more money, and with this money, they will expand themselves in order to make more money. While doing this, they create jobs for the public. And if they continue to prosper, they will be able to pay their employees more and will do so to obtain the best possible employees by outbidding the competing companies. This in turn will help set employee by increasing his salary, which will obviously help their financial life.
The next step in a growing company, after obtaining the most valuable employees, will be to improve their products, and make it better than their competitors in the industry. Again.. helping the economy.
The major reason that a country's economy grows is through technological advancements, so that they can use their resources more efficiently than before; in the ultimate goal to narrow the gap between the aggregate demand and the aggregate supply. (The consumers' wants of a good compared to the productions capability to produce set good at the desired price of the consumer)
Then, the business must be able to compete with prices, because no one will buy a product from a business if the quality is the same and the price is higher than another company's. Therefore, the business will lower their prices so they can increase their sales, and ultimately revenue.
This is an ongoing process, which is why the economy continues to grow.
Now, if the rich, the business owners, are to be taxed more heavily than everyone else, this process will be slowed down because they won't be able to afford it, and our economy won't grow as fast, and ultimately suffer. Then there will not be as many jobs, and the average salary won't be as high.
The next step in a growing company, after obtaining the most valuable employees, will be to improve their products, and make it better than their competitors in the industry. Again.. helping the economy.
The major reason that a country's economy grows is through technological advancements, so that they can use their resources more efficiently than before; in the ultimate goal to narrow the gap between the aggregate demand and the aggregate supply. (The consumers' wants of a good compared to the productions capability to produce set good at the desired price of the consumer)
Then, the business must be able to compete with prices, because no one will buy a product from a business if the quality is the same and the price is higher than another company's. Therefore, the business will lower their prices so they can increase their sales, and ultimately revenue.
This is an ongoing process, which is why the economy continues to grow.
Now, if the rich, the business owners, are to be taxed more heavily than everyone else, this process will be slowed down because they won't be able to afford it, and our economy won't grow as fast, and ultimately suffer. Then there will not be as many jobs, and the average salary won't be as high.
Tax the Rich, Not the Workers
This statement has been seen on the back of cars with bumperstickers and seen on signs virtually everywhere in the months leading up to elections. This concept, however, implies that the "rich" don't work, and the workers aren't "rich".
Think of the doctors, the accountants, the lawyers, and the managers of the local Walmart, or the local McDonalds. They can all be considered "rich", yet which one of them slacks off? They all work hard.
They all put in long hours at school, and in their profession so that they can be at where they are today. Lawyers work on average 80 hours a week in their first year; which means that if they were to work six days a week, they would have to work from 6:00am - 7:30pm from Monday through Saturday. Sounds easy enough right?
I'm sure lawyers would love to work standard hours from 9:00am - 5:00 pm for 5 days a week, but in their profession, like other high paying jobs, that is not an option until after 20-25 years of working.
To say that the rich don't work is ridiculous.
The reason that America is wealthier than other countries is that there are so many opportunities for people to become rich. Or, at least there were. By constantly increasing the taxes on the rich, the chances of someone becoming rich are becoming much less likely.
"Central redistribution of wealth was tried in the former Soviet Union and is still in use in EU countries. The former went bankrupt evening out the wealth. The EU is now experiencing the consequences of redistribution: forcing Great Britain to cut back on needed health services and driving Greece into a severe austerity program."
http://www.americanthinker.com/blog/2010/10/tax_the_rich_not_the_workers_m.html
Think of the doctors, the accountants, the lawyers, and the managers of the local Walmart, or the local McDonalds. They can all be considered "rich", yet which one of them slacks off? They all work hard.
They all put in long hours at school, and in their profession so that they can be at where they are today. Lawyers work on average 80 hours a week in their first year; which means that if they were to work six days a week, they would have to work from 6:00am - 7:30pm from Monday through Saturday. Sounds easy enough right?
I'm sure lawyers would love to work standard hours from 9:00am - 5:00 pm for 5 days a week, but in their profession, like other high paying jobs, that is not an option until after 20-25 years of working.
To say that the rich don't work is ridiculous.
The reason that America is wealthier than other countries is that there are so many opportunities for people to become rich. Or, at least there were. By constantly increasing the taxes on the rich, the chances of someone becoming rich are becoming much less likely.
"Central redistribution of wealth was tried in the former Soviet Union and is still in use in EU countries. The former went bankrupt evening out the wealth. The EU is now experiencing the consequences of redistribution: forcing Great Britain to cut back on needed health services and driving Greece into a severe austerity program."
http://www.americanthinker.com/blog/2010/10/tax_the_rich_not_the_workers_m.html
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