By Terry Corbell
The Biz Coach
7 Capitalism Principles for Economic Growth, Prosperity
Employers are discouraged from hiring largely because of uncertainty created by public policies. That includes uncertainty – created by ObamaCare – in costs and taxes.
Add to them, policies leading to tepid growth in U.S. gross domestic product. Of course, global concerns include the European Union economic crisis, China’s banking and housing headaches.
They all cause an understandable fear about a new recession.
Employees and would-be workers are discouraged. The unemployment rate has remained above or near 8 percent for nearly four years. Many new jobs created during the past three+ years are only part-time. College graduates can’t get meaningful jobs – ask most Starbucks employees.
A widely quoted economist and Op Ed contributor, Dr. Peter Morici, says the real unemployment rate is about 18 percent.
As a result, consumer confidence continues to drop, according to the Thomson Reuters/University of Michigan index. That’s why household spending for products is down – representing 70 percent of the nation’s economy.
These nightmarish trends prompt discussion of these dysfunctional public policies:
- Abysmal energy policies and billions for failed solar energy startups with phony job descriptions (the government believes a bicycle repair person works at a “green” job)
- Class warfare – increasing taxes on the wealthy (Nonpartisan Study: Obama’s Tax Plan Hits 53% of Business Earnings)
- Costly ineffective business regulations
- Expensive ObamaCare mandates
- $16 trillion federal budget deficit
- Stimulus spending
- Temporary tax cuts
Conveniently forgotten by the administration, Mr. Obama declared that he will improve the $600 billion trade deficit and create 2 million jobs hasn’t worked. Americans are sending their money abroad for goods and oil, but the dollars don’t boomerang back to the U.S. We need a 5 percent growth in GDP each quarter, but each of these failed policies only lead half or less of that rate.
All of these need to be reversed for positive economic environment.
In addition, there needs to be a wide-acceptance of seven capitalism principles and business:
- Businesses are not launched to create jobs.
- Businesses are established to create products and services that customers will buy.
- Businesses can thrive in competition – to keep the cost of goods and services affordable.
- Businesses with savvy management are profitable – if not, the companies fold and employees are laid off.
- Businesses that enjoy success invest in new equipment and hire employees.
- Businesses that are productive will attract investment and grow.
- Businesses experiencing growth will fund retirements and pay taxes.
From the Coach’s Corner, if you buy into these principles, here are profit-making strategies:
- Business Success Checklist to Work Smarter, Not Harder
- 8 Simple Strategies to Give You Pricing Power
- 12 Tips for Profits to Keep Your Business Dreams Alive
- Management Strategies for a Successful Turnaround
“Capitalism is what people do if you leave them alone.”
Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.