March 06, 2009
The Fight for America's Economic Soul

I received this email from the Freedom Foundation. It is pretty good and has some good links with information and an entrepreneurial contest:

In her classic novel Atlas Shrugged, Ayn Rand describes a battle for the soul of the U.S. economy. The nation's "producers" work hard, innovate, and create prosperity, while the "looters" and "moochers" live off of the work of others. Sound familiar?

Atlas Shrugged was written over 50 years ago, but the battle at the heart of that story is still raging today. In fact, things are turning for the worse as the Congressional "looters" hand out seemingly endless bailout to growing list of "moochers" from Wall Street, to Detroit, to your neighbor who bought a house he couldn't afford.

We are in danger of forgetting that American prosperity is built on hard work and innovation, not taxes and government spending. Now, as we face a recession and financial panic, is the time to remember that our system prospers from private action, not public handouts.

That's why FreedomWorks is launching a new project to celebrate and reinforce the role that entrepreneurs play in our society and having the "I am an Entrepreneur" competition.

We want to call attention to the good work and solutions from people in all walks of life who innovate, initiate, and create. The people about whom Ayn Rand said: "Throughout the centuries there were men who took first steps, down new roads, armed with nothing but their own vision."

At this moment in history, America needs to look to entrepreneurs, not government, as providing the solutions to today's challenges.

Unfortunately, our political leaders seem to have lost confidence in America. John Maynard Keynes, the Depression-era economist, is back in favor as Congress grapples with the economic crisis (which was created largely by government subsidies for housing and debt, but that's another story). Keynes was a leading proponent of government intervention in the economy, and it is Keynesian logic that Democrats are using to justify their federal deficit of $1.5 trillion--a deficit nearly equal to all federal spending in 1996!

Keynes also offered misguided ideas about taxing entrepreneurs, writing:

"Thus we might aim in practice...at a scheme of direct taxation which allows the intelligence and determination and executive still of the financier, the entrepreneur et hoc genus omne (who are certainly so fond of their craft that their labor could be obtained much cheaper than at present), to be harnessed to the service of the community on reasonable terms of reward."

Keynes is saying that government should raise taxes on determined entrepreneurs, because they will do the work anyway and the government can take a larger share without deterring their activity.

Keynes is right to recognize the passion of entrepreneurs, but his solution to "harness" them with exceptional taxes is wrong. It is wrong morally and it is bad economic policy--clearly higher taxes reduce risk-taking and discourage hard work.

This is dangerous logic, especially at this time. Yet we see the same idea resurfacing in Barack Obama's proposals for higher payroll, income, and capital gains taxes on the "wealthy".

It is time to stand up and defend private enterprise and initiative. If you agree that the battle for America's economic soul is entering a new phase, I'd like to invite you to join our Entrepreneur Circle and participate in our "I Am an Entrepreneur" video and essay competition. Please click here to find out more.

I hope you'll join us in this important effort to fight the looters and moochers.

Sincerely,

Dick Armey

P.S. In addition to participating in our "I am an Entrepreneur" competition, do you want to do more to encourage people to pursue the freedom-enhancing path of entrepreneurship? If you or someone you know is an aspiring entrepreneur, there is valuable guidance, inspiration and wisdom from master entrepreneurs at www.ActonGuides.org.


cross posted: The Truesoldier Rants

Posted by TrueSoldier at March 06, 2009 08:29 PM | Email This
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