Sunday, October 26, 2008

Capitalism in the Land of the Free - Free Market Risk & Reward

This is my response (here: http://forums.hannity.com/showthread.php?p=35639191#post35639191)to a Hannity Forum poster (here: http://forums.hannity.com/showpost.php?p=35662071&postcount=186) who suggested that a business owner who needed to cut costs (due to Obama's tax increases) should start by cutting the business owner's personal income rather than cutting back on employees. Here's my reply:

Here's the thing - entrepreneurs & investors don't accept the risks (of say, starting a company) so that they can give away the rewards. Just the opposite. American free-market economy is all about people taking risks for the POSSIBLE benefit of rewards - and possible huge rewards.

When you became that guy's employee - that business owner had ALREADY TAKEN all of the risks - he took a risk in hiring YOU because he was not guaranteed the sales/income to pay you - BUT YOU took absolutely NO risk - you did the time/effort and were guaranteed the income. He did the time/effort/worrying and was guaranteed absolutely zippo.

That's why Dave (of Wendy's) reaped the rewards of entrepreneurship - he left the salary job of hamburger cook to start up a hamburger shop. He had no guarantee of sales or that sales would cover his expenses or his payroll.

He has no obligation to your loyal long-term service, except to the extent it adds to his biz (which it probably does), and you have no obligation to his loyal long-term payment of your paycheck and helping you feed your family - because you can leave anytime and go across the street to anyother company for any reason whatsoever, say, they give you a better parking space.

I believe that this free-market system, the risk/reward scenario, is what makes America the land of great opportunity. And this reality of risk/reward is negated by when a big govt puts its fingers into everything and guarantees all against the downside, thus robbing all of the opportunity of free choice and reward.

America - the land of the free & filled with opportunity - not the land of the guarantee.

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