“No Man’s life liberty or property is safe while the legislature is in session”.

- attributed to NY State Judge Gideon Tucker

Thursday, September 9, 2010

What Happened To Incenting Initiative In America?

The Wall Street Journal's Daniel Henninger supplied a precious quote from Wonderboy's Labor Day speech in Milwaukee, Wisconsin.

"Anyone who thinks we can move this economy forward with a few doing well at the top, hoping it'll trickle down to working folks running faster and faster just to keep up- they just haven't studied our history."


Maybe it's Wonderboy who needs to "study our history."

Absent from the president's view of economics is- capital.

It's not being wealthy, per se, that brings more wealth. It's using that wealth as capital to take more risks and earn more wealth.

That's not a bad thing- that's how our economy moves forward. Without investment of private capital, jobs don't get created and economic growth falters. Sure, many small savers may, in the aggregate, create capital to be lent by banks. Or perhaps invested as equity by a mutual fund. And, if so, then those people, by definition, have surplus capital and are wealthy, in that respect.

A society of all-poor people can't form capital to invest in projects which, over time, increase economic activity, living standards, and overall wealth.

Wonderboy is at war with anyone and anything that has capital to invest. That's a bad omen for the US economy's future.

1 comment:

Brad said...

Dear C,
But of course, since 'the great one' is an un-abashed socialist. 0bama actually believes that entire liberal agenda. Brad