We seem to have a problem brewing in the United States, as there are philosophical differences between laissez-faire free-market capitalism, and big government control over business. Not only do we have a culture clash and a bit of class warfare going on, but we also seem to have a total separation and divide amongst the role of government in business. It seems that so many industries have been maligned such as Wall Street bankers and corporate jet manufacturers. There’s no reason for this, and I’d like to talk to you about that for second.
We need the banking sector, just as we need to make corporate jets. The United States is quite good at making jet aircraft which are safe, and it is a good technology that we produce here and export. In fact we are the leaders of that technology throughout the world. We need not give up any more industries to other nations because we have over regulated them here. Unfortunately we are doing just that right now. China is trying to take our corporate jet manufacturing sector away from us. It’s already happening.
Why are we allowing this to happen, and what did we do wrong? We put too much regulation on this industry, and industries like it. Many folks, usually on the left leaning side of politics believe that businesses are dishonest, and therefore must be regulated. However, I would suggest to you that the political leadership is often dishonest, and untrustworthy, and gives in cahoots with big business, and big unions to try to control the production, labor, and financial resources to flow to their friends in high places. This needs to stop.
After President Obama took office he noted that he was going to make the coal industry give way to the new alternative energy sector. He even said that if they didn’t do what he wanted he would regulate them out of business. That’s a little naïve, but it is also extremely serious because at the time he took office 60% of our electricity was generated from coal-fired plants. If we reduce the amount of energy produced in this nation by any small amount it will cause a rapid increase in the cost of electricity – meanwhile Obama wants to reduce the amount of energy derived from coal-fired plants in a big way.
We can easily see the cost of energy increase by a factor of three in the next five years. That will hurt the cost to manufacture goods, and once again put us in hardship with trade deficits. Using the regulatory body to serve the political will of the either the Republicans or the Democrats regardless of which party is unacceptable.
We need to get back to free-market capitalism, and no political leadership should ever believe that they could better can all the flows of our economy better than the free-market itself. All that does is lead to unintended consequences, which is what we are dealing with right now. Indeed I hope you will please consider all this and think on.