Tuesday, September 10, 2013

Factor In The Entrepreneurs!

"So long as entrepreneurs are considered parasites and the beneficiaries of their efforts seethe in indignation, the poverty of the envious classes can only deepen."

Michael Levin
Foundation for Economic Education

That's a pretty strong statement!

Entrepreneurs are as essential to the economy as the other factors of production - land, labor and capital!  When the economic system does not allow and promote each factor's contribution, the system is not in sync and cannot produce efficiently.

And when one of the factors of production is trashed by the Two Legs, and the class-envy flames are stoked, well, good luck to it and to its contribution.

A reward is just that.  A better mousetrap is just that.  Profit is a brilliant or ear-splitting signal that one's product or service is appealing to the market.  Nothing more, nothing less.

Entrepreneurship is not parasitical!  And what it gleans from the market should not create indignation or envy!

And when gubment tries to stultify product or service introduction into the market with unending regulations or taxes, it further complicates what should be the balanced interaction of all the factors of production. 

How come gubment promotion or encouragement is not the rule?  Gubment is most encouraging when it considers a factor of production to be "politically correct!"

But that is NOT economic policy!

Are abundant natural resources considered parasitical?  Are people envious when there are lots of minerals or forests or rich farmland in their country?

Or is it parasitical when there are a lot of educated people eager to work and contribute?  The opposite (uneducated and lazy) truly is parasitical, but that is a topic for another post.

How about great capital development making ever-increasing productivity the thing that spurs more employment?  Full employment is something to envy, perhaps, but not in a negative way.

So, why is it that the entrepreneurs get demeaned?  Or are set apart as less than vital?  Or create an indignant class when their idea or service is rewarded?


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