7 Capitalism Principles for Economic Growth, Prosperity



Americans would be a lot more content if the Obama Administration understood and implemented seven capitalism principles for economic growth and prosperity.

Many Americans are insecure because household incomes are down from stagnating wages. The average American workweek is less than 36 hours a week.

Employees and would-be workers are discouraged.  Many new jobs created during the Obama years are only part-time. College graduates can’t get meaningful jobs – ask most Starbucks employees. 

businessmen-428386_1280Added to them, policies have led to tepid growth in the U.S. gross domestic product.

Of course, global concerns include the European Union economic crisis, China’s banking and housing headaches.

All factors cause an understandable fear.

A widely quoted economist and Op Ed contributor Peter Morici, Ph.D., says the real unemployment rate is about 11 percent. 

Dr. Morici is an economist and business professor at the University of Maryland, former chief economist at the U.S. International Trade Commission and five-time winner of the MarketWatch best forecaster award.

(See his economic analyses here and his economic forecasts here.)

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. 

Nightmarish trends

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 with its dysfunctional and countless unfulfilled promises

— $18+ 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. 

“Capitalism is what people do if you leave them alone.”

Kenneth Minogue

Capitalism principles

In addition, there needs to be a wide-acceptance of seven capitalism principles and business: 

  1. Businesses are not launched to create jobs.
  2. Businesses are established to create products and services that customers will buy.
  3. Businesses can thrive in competition – to keep the cost of goods and services affordable.
  4. Businesses with savvy management are profitable – if not, the companies fold and employees are laid off.
  5. Businesses that enjoy success invest in new equipment and hire employees.
  6. Businesses that are productive will attract investment and grow.
  7. 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: 

Searching for Profits? Escape the Wilderness of Uncertainty — The quest for profits is challenging if you’re lost in the wilderness of uncertainty. But success is possible. Hard work isn’t a cure-all for success in business. True, passion and enthusiasm help to a degree, as well. But success requires more than just these qualities.

8 Simple Strategies to Give You Pricing Power — If you’re struggling with pricing strategies, you’re not alone. Many big companies struggle, too. By way of explanation, according to a 2011 study, almost 90 percent of executives in a global survey forecast their continued growth.

12 Tips for Profits to Keep Your Business Dreams Alive — Most businesspeople agree the economy continues to be challenging. Signs of a lingering downturn are everywhere. Business activity is slow. Governments at all levels report low tax revenue and are restructuring, and not spending. On top of it all, customers want you to cut prices.

11 Management Strategies for a Successful Turnaround — When it comes to management strategies for a successful turnaround, a quote by financial-world wizard Warren Buffett is apropos.  “Risk comes from not knowing what you’re doing,” Mr. Buffett said. My response: “Touché.” It’s all about capital mobility created by effective management.

“Capitalism is what people do if you leave them alone.”

Kenneth Minogue

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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.

Seattle business consultant Terry Corbell provides high-performance management services and strategies.