#OWS – capitalism

Video 1 to the OWS series –

The only reason a business exists is to create wealth.  It creates wealth first for the customers because if the customers weren’t entirely benefited from the product or service, that business wouldn’t have customers.  It creates wealth for as many people as are able to be employed with that business for years and years.  It creates wealth for the share holders since these people are risking their money to allow the business to have operating capital which helps get and keep employees who make decisions about how good a company they are going to have.

The biggest problem with people favoring the government so easily is that those people are ignorant to the cost of doing business.  This is understandable since the majority of people don’t start businesses.  Most people just go to work, do their work and leave.  Never knowing all the costs and charges that go on behind the scenes to support their job.

Before you rent a space the government has regulations about what a building should look like before it is suitable to be rented.  There are commercial codes to make the place ‘safe’ and environmental standards.  Even if they don’t make the place safe they add to the cost of rent because the landlord will definitely be passing on those costs onto the business in higher rent.  Depending on the business you have you will be charged a business license fee, then you will be taxed by the city based on your profit to maintain that business license, you will be taxed by the state on your profit and you will be taxed by the federal government all on that same profit.  Then if you have employees you will be taxed for each employee and each employee will be taxed on that same money.  Then you will pay the local government your sales tax that you have been collecting on their behalf.  Depending on your type of business numerous insurance costs are in your future.  Insure the building, insure the products, insure the employees. Don’t forget about legal liability costs, unemployment costs and other built-in government programs that come along with hiring people.  Each time we have to pay something or do something that isn’t involved in getting or keeping customers it is unproductive and by default is a money loser for the business.

It reminds me of the movie ‘Goodfellas’ when the club owner asks Paulie to be his silent partner and no matter what you will pay that silent partner.  [play movie sound]  The government benefits with you on your way to prosperity and goes def, dumb and blind when you fail unless you still owe a tax while you crashed your business.

The fees that are paid to government can be argued important or not on a fee by fee basis.  The best way to argue for a fee is pointing out where it adds value to something.  The government isn’t valuable besides what value it creates for the people it governs which is why government always frames their excuse for the fees by suggesting it is making things safe for the people.

There are more fees that simply feed government than can reasonably be argued that such fees are for a common good.  The resistance to fees is usually a failure of the payor to have value for the service, safety or protection the government says the payor is getting for the fee.  Which can also be stated as the government doesn’t provide valuable services for the fees it charges

Two things can solve this problem; either the government gets more honest and only charges for the value based fees or drops the fees in general to where a business doesn’t feel such a burden.  Unfortunately the government is a monopoly unless you’re a really good business.  If a business has enough money the world becomes your market and in that case you can choose any government in the world to do business.  Just like we chose where to rent based on price and location the business that makes enough money can choose which government to deal with.

Remember, a business’s only function is to create wealth.  The people who start those businesses have many different reasons to start. Some people just want money so they exploit a market.  Some people want change or to start a revolution.  A business allows these things to be everlasting.

Capitalism makes the most sense for the people who want the most freedom because the indicator for how much money a company makes is directly proportionate to how many people freely choose to buy that company’s products.  Therefore, the companies with the most money have given their customers the most wealth and enriched their lives.  If it didn’t create wealth or enrich customers why would they buy?  There isn’t any force by the government to buy one thing over another.  It would cease to be a ‘free’ market in that case.  once the government forces anyone to buy anything the free market is contaminated and is no longer a free system.  Similarly, if a government favors a business by giving them money the free market is undermined.  There is a bigger point here which I will make in a following post; that is government doesn’t really have any money.

Which brings me to my last point;  there are two types of monetary distribution systems.  One is based in freedom and the other is based in slavery.  One is by an individual buying something they find value in and the other is by government forcing an individual to surrender their income, taking from them the direct influence where it is spent.

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