Do you ever get the feeling that the experts are trying so hard and know so much that they can’t see the forest for the trees? I listen to economists and political pundits go on and on about the state of the economy, as if simultaneously the sky was falling and that everything is perfect at the same time — sometimes in the same paragraph.
I’m not a trained economist, but I’ve studied economics for over forty years, successfully run a $100 million dollar division of a Fortune 50 Company, and started my own businesses — one of which you are learning about on this website. I’m sort of an old pragmatic former conservative that thinks the entire world has lost their minds and I decided to write down my thoughts so that more and more people worldwide could ignore my thoughts in print instead of having to get to know me to ignore my thoughts…logical right?
Things are simply never as complex as they are portrayed. Where’s the Farmers’ Almanac of Economics? Where in God’s name is the middle?
I just want to create a place and forum for the rest of us. I’ve been a multi-millionaire and I’ve been on medicaid. I’ve been a corporate executive and I’ve been a Lyft driver. I have lots of thoughts from both sides of the American Dream. The one thing that I’ve noticed throughout my life is the almost child-like zeal that TV reporters take when they report on extremely long term trends. Or to quote someone (whom I can’t identify), “you state the overwhelmingly obvious with a tremendous sense of discovery”…are people really as stupid as I think they are? I hope not.
Back in the olden’ days businesses borrowed money from banks. In the modern era, businesses borrow money from investors. So the Fed’s idea of using interest rates to stimulate growth or check inflation no longer applies in any meaningful way. This seems so obvious to me that I worry these seemingly brilliant economists are actually dullards. But it’s not that they’re dumb, they’re just blind to the “non-academic” reality that is actual business.
The concept that conservatives need to digest is this: when capitalism was developed as an economic theory, it was possible to compete with anyone and any product if you built a better mousetrap. In the modern era, you and I are not on the same playing field as Amazon or Exxon. Therefore we have government regulations to oversee these corporations. Also, when capitalism was coming into its own, cutting taxes would stimulate companies to grow and therefore hire more workers.
Since the invention of the computer, the act of stimulating the economy with corporate tax cuts actually creates investment in various research and development projects designed to replace humans with automation. Thus, supporting corporate tax cuts ultimately reduces the workforce and creates more unemployment.
So we’re at a crossroads.
What is the point of capitalism? My understanding is this, we believe that the system we utilize should allow me, as an individual, to pursue my dreams in a system that rewards my hard work with monetary rewards commensurate with my contribution to society. Notice the use of the important word: “individual” — this DOES NOT apply to the modern corporation in the same way. Corporations are creations of the government that only exist as a courtesy of our government and should be treated as such, they’re not the life’s blood. People are the life’s blood. Corporations are distinct in that they are not people, they are dissolvable entities that are designed to be regulated.
My friends, we have wandered far from this ideal. Now, how do we get back? I would posit that conservatism requires character and we are currently in a vacuum of this irreplaceable asset. Let’s try to find a path that allows success in business and success in our communities without so much blame and whining.