Previous related posts
- NBA team owner Mark Cuban has an idea of how to save the economy – Part 1
Unlike the president who focus on condemning those who shift jobs abroad, it is important to understand that the Law of Economics has stipulated saving dying or noncompetitive industries and jobs through quotas, tariffs, and protectionism actually cost the country’s economy as a whole. In winning some new devoted voters whose jobs he saved, the politician actually put everyone else at a disadvantage by forcing everyone to pay a higher price for the product, but more importantly to the politician is he or she can claim that he or she is workers’ champion and walked out as the winner. If in doubt, go back to your basic college freshman level macroeconomics text book, and look for the related subjects in comparative advantage, tariffs and quotas. Disobeying the law of economics have always produced disastrous results, just look at what happened to the communists and socialists countries before the adoption of market economy and capitalism, and look at European countries who believes in entitlements and easy lives, rejecting the need for efficiency, innovations and sensible government spending.
It takes two to tango. The Republicans’ single minded agenda of lower taxes for the wealthy does not help the issue either. Most of the time, they know nothing about federal budgets, and the effects of cutting taxes and spending cuts during a bad economy. It would be refreshing to see them talk about fostering an environment that encourages fresh thinking and innovations, not wars, guns, and tax breaks for the wealthy. Growing the pie is perhaps more sensible at desperate time than grabbing a bigger slice of the shrinking pie.
I have always believe in great ideas and innovations that change lives, and revolutionary products that address needs and better living standards. After all, to sustain an advanced economy with well-trained/educated human capitals and high living standard, devaluing a currency to encourage exports and shifting manufacturing jobs back is not a long term viable solution. What this advanced economy need is entrepreneurs to bring about new innovations, new designs, revolutionary products that consumers need and want, thus creating sustainable demands, good jobs and incomes that fuel the consumer confidence as a result. Facebook’s stock may be a disappointment but you cannot deny the economic stimulation Social media as a whole provides to the surrounding area, the state, and the country. We need more of these great ideas and innovations that can stand the test of time, in stead of dirty/clueless politicians’ political rhetoric that pitch the haves and the have not against each other in a class warfare. Obviously, the political bickering will never end, the question then become, is more money always the solution to our problems? Perhaps not always, but in the short term, I don’t see how this would hurt.