It’s always the same shit only a different day. Free markets are never really free, companies complain regulation hampers business and regulators say the “free” markets will get rid of excess and fraud. Yet we always end up with fraud, debacles, and bubbles.
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The markets aren’t free, but the regulation is likely going to be corrupted and the reason is the design of the system….
here’s how it works…
1)Businesses pay lobbyists
2)Lobbyists fund politicians
3)Lobbyist write laws
4)Politicians sign laws
Any piece of legislation has to work around these obstacles otherwise it’s going to be corrupt legislation that only locks out the non politically connected businesses.
My guess is you can still get some laws that at least lay the foundation for growth such as
1)Financial education in schools. Teach kids how to read a balance sheet and P&L statement, and about determining a businesses value. (buffet style investing) Have actual people with business experience be given some kind of tax break so they will want to teach but give them no salary so they have to have experience and success. This will at least lay the foundation for politicians who at least understand what laws they are signing and the effects, and so students can grow up to make more intelligent entrepreneurial and investment decisions. Without wasting resources and capital on failed project the economy will be more efficient in getting jobs started and running and the stock market will be less of a “follow the leader” game into overpriced areas, and more based on fundamentals.
2)No buy outs of start up companies allowed in the first 7 years. I understand big businesses can get more use out of a small businesses resources, but I am concerned about the big businesses that maintain their power through buying out the small innovative companies, that if given time to develop those resources, may end up producing significantly more for society and making the world a much better place.
3) In the first 5 years competition is fierce and it is a difficult environment to thrive in. I believe taxes on start up companies should be delayed significantly. I know there are loopholes already, but many businesses just starting can’t afford to have a good accountant that knows all the loopholes. So just make it clear. The first 5 years of a companies existence you pay 9% taxes federally, and if you have already created a successful start up you pay 5% and if you ha created many successfully (say 5+), you pay 0% in the first 5 years. This encourages business growth, which leads to job growth.
Also, tax breaks should be given to businesses that invest money towards projects that allow employes to work from home, which will reduce gas prices, and keep transportation low and reduce dependency on foreign oil.
“lay the foundation for growth such as
1)Financial education in schools.”
Good gawd! Do you want to destroy the banks!
A financially literate America would quickly figure out that no bank can compete with the cost and level of service offered by a mattress.
But, you might be on to something. Pampering the banks hasn’t been laying any foundations for growth. Destroying them might be worth a try. At the very least, it would mean less junk mail for a little while.
All true lol…
Right on Mike