TOO BIG TO FAIL

For years I watched as huge corporation after huge corporation merged, coalescing into gargantuan monsters in the name of “economy of scale.” As a layperson, I always wondered, when do anti-monopoly regulations kick in? “Oh, well,” I reasoned, “the experts are monitoring it and must know best.”

Then 2008 hit. Most of the guardians of the economy failed to predict the collapse, and the maxim “too big to fail” began to resonate through the hallowed economic halls of government and academia. Bail-outs with (of course) taxpayer dollars became the band-aid du jour. That’s when I realized there were no experts, at least ones in a position to do the American public any good. Isn’t competition the basis of a free, capitalistic marketplace, and the point of anti-monopoly legislation to protect it? Once again, it seems systemic corruption has undermined the safeguards necessary to keep the marketplace viable. Ergo, the next reform I recommend is closing the loopholes in our anti-monopoly laws. If something is too big to fail, it is too big to exist.

Up to this point the legislation I’ve proposed has been directed at limiting the abuses of the private sector that serve to undermine the strengths of the capitalist system. But legislation should not be used to hobble the engine that drives this country’s economy. To that end, I propose we ease the capital gain tax. While naysayers will see this, as they do most legislation that is pro-business, as favoring the rich, this is short-sighted. This move would increase investment in the private sector, fueling its growth, and begin to shift our economy back from the public to the private sector, where it can again be productive. Government revenues will increase with a robust private sector economy as “a rising tide raises all boats.” There are those that still adhere to the “win-lose” belief system that contends the pie is only so big and the more someone gets the less is left for another. But I believe pies, like the GDP, can be made bigger. We just need to fertilize the soil to get more apples.

Next: Giving the government its come-uppance.

Advertisements

Tags: , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: