Saturday, January 12, 2013

Who are we calling producers and who are those who refuse to produce?

One of the sad sign of our times is that we demonize those who produce, subsidize those who refuse to produce, and canonize those who complain. --Thomas Sowell
This is a particularly disgusting statement.  First, those who produce and those who do not is a matter of perspective.  What do you tell the father of 3 who has relied on a job for most of his life, who then lost his job because the company who he worked for was mismanaged by executives and had to shut down?  What do you tell that same father when the same guys that ran his company into the ground got huge bonuses "so they wouldn't leave" before operations were completely shut down?  If the father had stock in that company, he lost on two fronts because of those executives.

Given Sowell's statement above, I would ask, who is he calling the producer?  Who is he calling "those who refuse to produce"?  Would it be the executives that drove their company into the ground, not only losing value in the company, but also within the greater economy?  If anything, they are anti-producers.  This makes them worse than the supposed people who "refuse to produce", whoever they are.  The producer is the father who worked his entire life at his company, making the goods and services that found their way into homes all across America.

Fed has spent trillions to keep a dying financial industry on life support, who in turn gave huge bonuses to the very people the caused the last melt down of our economy.  What did those people do with the rest of the taxpayer's money?  Most of it is locked away, being kept out of the economy (likely for good).

Are we really all that worried about giving a few pennies (comparatively) to people who are likely already not putting enough food on the table because they believed in this very system that eventually let them down?  It's this kind of nonsense that makes communism start to look good to the starving masses.  We would not need to raise taxes had it not been for the massive problems that we, the voters, allowed in Wall Street by putting congresspersons in office that are more worried about the next big donor than they are about the solvency of our system.

How badly do we want to lower taxes?  Well, let's consider something.  Out of the last three crashes of our economy, two were caused by real estate financials games that started happening as a direct result of deregulation of particular financial institutions.  The games these institutions were playing eventually stopped working, but the corporations still needed to pretend they were making money (when, in fact, they were losing massive amounts of money).  So, they created paperwork fantasies to keep showing profits on Wall Street in order to convince everyone that nothing was going on until it was too late.  The third economic crash was caused by too much speculation on Wall Street. The common thread here is Wall Street and all the money that the taxpayer is continuously asked to pay to keep these guys rich when really they should be in jail.

2 comments:

Charles said...

I will argue that producers are people who add more value to the economy than they take. Thus anyone with a large salary would have to actually be adding more value than their salary (probably untrue).

This all comes down to the definition of profit. Profit is when a corporation (or person, but really it is a person's corporation) sells an object for more money than it cost for them to make it. Thus all profits are people taking, not giving. It's either the corp. taking from its customers because they charge more than they need to (Apple with their 40% margins), or the corp taking money from their employees because they don't pay them what they are worth (Foxconn, because, well, Apple).

So companies that take a profit are takers, not givers. And most companies goals are to be bigger takers.

Matthew Lorono said...

Meanwhile, here's the reality:
Classic: fired intern's excuse for being bad at their job - http://www.reddit.com/r/AdviceAnimals/comments/18dsq2/today_i_had_to_fire_our_intern_for_being/ #reddit