Basic econ: Create disincentives for business and our entire nation suffers

There is a principle of economics that not too many people understand these days.

There is only a finite supply of money, and if you give it all away, there will be none left.

The other truth is that if you tax people to death and make it so it is not profitable to run a business -- they will take their money and run somewhere else or not bother to pursue success at all.

A country that is going to grow and to prosper has to encourage entrepreneurship and to curtail government involvement in free markets -- no ifs, ands or buts.

Without the engine of a prospering economy, there are no jobs.

No jobs mean fewer taxpayers.

And fewer taxpayers mean less money in anyone's coffers.

Even government programs cannot exist without someone to pay the bills.

Forget the collateral damage socially of having a society that subsists on government programs. Ignore the fact that a nation that does not encourage people to dream, to work hard, and then, to succeed cannot possibly lead the world.

The bottom line -- it is economics.

If you are penalized for succeeding in your business, and taking the risk to start one will simply end in you owing most of the money you make to the government, what is the incentive to pursue capital, to put in the work and to wait for the reward?

That's right, none.

Small businesses are the pistons in this economy. They are the employers in towns all over this country -- and the businesses that add jobs, grow and become larger interests with more possibilities of employing more people.

But it is a risky endeavor. They do not all succeed and owners must put in long hours and lots of work to make them successful.

And it is the same story for all of them -- even the ones that are now household names and successful Fortune 500 companies. They all started small, somewhere, with a person with an idea and the drive to make it happen.

There is a myth that all rich people got that way by luck, inheritance or by cheating others.

And in some cases that might be true.

But the vast majority of people who are successful today got their start in a nail-biting, close to the edge, risky endeavor into which they put their heart and soul.

They took the chance. They should be able to count on the reward when their hard work pays off. And in many cases, they share that chance to dream and to succeed with others.

That is, in essence, the American dream -- having the freedom to pursue your dream and to make it successful.

Government dependence is crippling. It kills dreams, limits possibilities and keeps people trapped in a downward spiral of poverty.

Our goal as a nation should be not to put more people on food stamps or on welfare, but to get more of them off these programs and into jobs.

We need more taxpayers, not more taxes.

It is common sense -- and economics.

Published in Editorials on April 4, 2013 11:16 AM