In 2011, the Keynesian Model of Economy managed and planned in the United States lost 129,000 millionaires. According to CNBC the number of millionaires in America fell from 5,263,000 in 2010 to 5,134,000 in 2011.
Wealth in other economic “powerhouses”, such as China, saw growth during this massive loss for the US economy.
To some, this isn’t seen as a massive loss. And to those who gained millionaires and whose government may be adopting more free market principles, congratulations. But there are those in the United States, who celebrate the loss of millionaires from this country.
There are those who wish to tax every dollar, regulate every decision, and spend every dollar of profit private companies make. They would rather see the gap between the wealthy and the lower economic class shrink due to wealthy losing wealth, or leaving, than see the poor and the wealthy grow in prosperity together.
Some Politicians would champion the loss of wealth by the wealthy and attempt to use it to champion an achievement of equalization of wealth, because as they see it, a rich class and the opportunity to move upwards in society if you are a member of a lower economic class is a less worthy goal than being equal in poverty, as long as there is equality.
These same politicians who seek to criminalize business and wealth are the first to promise out more welfare, promise to increase the size of the police-industrial-complex, and promise a larger warfare state. They are the first to spend the money of others, the taxpayers, without their consent, and the first to create money out of thin air with the Federal Reserve and Treasury’s wealth-without-production-printer.
Ironically, the wealth they demonize, and the production of the innovators they force out, are the first and last materials these tyrants think about. While the wealth is in the Country, the tyrants raise taxes higher to attempt to take it, not blinking at total tax rates of 50% or higher.All the while, they push for more accountability from private businesses and demonize their practice and their profit.
And when the wealth owners realize the mess they are in, losing billions of dollars to taxes and regulations that impede and destroy business, and attempt to leave,when it seems they are unwanted by government and the likes of Paul Krugman, tyrants are the first to argue and fight to keep the wealth here without the individual owner of the wealth.
It doesn’t even take running a business to understand that the higher percentage of wealth stolen taxed from a business owner, the lower percentage of wealth is available to hire, invest, pay themselves, and save. Even if we were to tax the wealthiest individuals and corporations 100 percent of profit, we wouldn’t be able to last longer than 1 year, and after that 1 year, there would be no wealth left to tax.
The more wealth a business owner has, the more wealth that is eventually spent on jobs and innovation, which leads to better business standards and a higher quality of life for all, including the poor (gasp!).
How do tyrants expect to have wealth without production? How do they expect to have technology without innovation? How do they expect to have an employee without an employer or a small business without a business with enough capital to invest or loan?
They seek out Central Banks that manage and plan economies without asking how you manage and plan innovation. The central planners plan away the economies destruction without wasting a thought on the natural flow of commerce or that a producer’s product must change and satisfy as quickly as a customer’s taste changes.
How does someone plan the 20 year old college kid’s decision to choose to go to a burger place, then change his mind to a dessert place, then change his mind to a burrito place, then change his mind to the grocery store, then drop all plans to eat to go to a concert with friends? You cannot plan the sporadic and spontaneous nature of an economy just as you cannot plan an idea you have not had.
These tyrants would see to it that the Federal Reserve continues to set interest rates, and keep them near 0% claiming only benefits and prosperity will come, while malinvestment and stock market crashes and bubbles plague the market. And yes, if the interest rates were to be freed of their chains at this moment in time, they would skyrocket.And if interest rates skyrocketed, a necessary liquidation would occur and we would experience the bust.
But if interest rates were left to act naturally, rise when savings was low, and fall when savings was growing, and currency was sound, the time of the boom and bust cycle would be over. If the Federal Reserve was not aiding, encouraging, and planning the theft of 16 TRILLION Dollars, just during the recent housing crash, and that of TRILLIONS more between then, now, and the future, there could exist a sound currency in these United States that encouraged savings, that encouraged hard work, and that self-regulated bad business practice so poorly looked upon nowadays.
Creating more fiat dollars and federal reserve notes, based on trust and not value, will only devalue the existing ones in savings accounts and wallets, because there is no trust without value. And not even an insane man would believe that you can create more pizza by cutting pizza into more slices.
Certain individuals would smile at the Keynesian Model of Economy losing 129,000 millionaires. They would see it as an opportunity to spend more time regulating the few that are left. They would ignore the lists of multinational corporations that support more regulations, and support the creation of new Federal Regulation agencies. They would ignore the possibility and actuality that when multinational corporations see that government has grown and as it grows, it offers more monopoly under the disguise of regulation.
If a company can receive its market from government regulation, instead of satisfying customers and beating competition with better products at better prices, many will choose to. And if there is success, the more profit made from monopoly instead of innovation, from government force and cooperation instead of customer satisfaction, the more money that will go back into Congress to pass more legislation and crippling regulation that negatively affects smaller businesses.
A small business can innovate, and can and have created better products than larger businesses, but how can a small business with limited capital compete with thousands of pages of regulation that require expensive lawyers, or high tax percentages and minimum wages that the larger companies with plenty of capital can deal with?
As the famous saying goes, the economy needs no conductor.
Commerce is natural, and along with it in its organic nature, is self-management, due diligence, self-regulation and a host of other reactions that occur when two individuals voluntarily agree to trade and discuss. Who cares more about a man’s wealth than the man himself? Who will go to more lengths to secure savings for kids than their parents? Who will be more cautious to conduct his or her business more safely and more efficiently than the owner who yields the profit?
A private company cannot steal the salary of a customer and use it to bail another company out. A private company cannot arrest and imprison a customer for choosing to sell certain products, or advocating different methods. A private company will react quicker to the loss of profit than the politician to the threat of a lost vote from a constituent.
The economy is always going on, it is always occurring. And it is that sporadic nature of the economy, and its ability to tailor to the need and want of capital that makes the market the best regulator there is in ridding itself of the bad and pushing forward the good. It is the self-interest, achievement, and value that comes with money that inspires and advises the individual to research and create security for himself and his wealth, and thus, those he interacts with and the society he interacts within.
To understand why losing 129,000 millionaires is horrible is to see the organic miracle that is the economy. The ability for free individuals to create and naturally own the fruits of their labor, and to be free to conduct commerce and trade among themselves, to research, learn, and save before purchase and expenditure, to fail and succeed freely, to innovate and advance without limit, is the ability for individuals to advance themselves to the highest order of their ability, and the society they improve themselves within along with.
The Keynesian Model of Economy within the United States, and the subsequent loss of wealth that comes with this model of economy, as seen with the loss of 129,000 millionaires in this case, signals much more than the loss of wealth, and that is what generates my sadness.
It signals that the core ideas that founded and created the most successful experiment of Liberty are being compromised away and blamed for the bad that these ideas and the idea of Liberty have prospered in spite of, and not because of, as Thomas Paine once explained in better words at another moment of crisis within this nation’s history,
“The Colonies have flourished in spite of the tyranny faced, and not because of”
Ahmed Serag
