BEST OF JIM COOK
May 29, 2007
NASTY BUSINESS
Left wing economist Paul Krugman, who writes for the
New York Times, recently faulted America’s corporations for a low rate
of capital investment. A similar period of low capital investment
occurred during the 1930s. It was the reason that recovery from the
Great Depression took so long. Both then and today great hostility
existed towards business. In the 1930s regulators and unions harassed
business, and tax authorities pushed for rate hikes. Bad publicity was
merciless. Business was well capitalized back then but pulled in its
horns and invested very little in expansion. It was too risky to do
otherwise.
We have much the same going on today. Various state
attorney generals are on the warpath against business in hopes of
furthering their political careers. Government threats and lawsuits are
daily fare in the media. Unions and activist groups vilify successful
companies like Wal-Mart. Capitalist villains get far more ink in the
press than innovators and entrepreneurs. Fairness doesn’t exist. An
Enron chief gets 21 years while a drunk driver who kills two people gets
nine months. New government regulations inhibit raising capital and
stifle expansion while mealy-mouthed politicians push to raise taxes. In
other parts of the world, government keeps out of your hair. They don’t
load you down with regulations, pension costs, health care expense,
legal costs, exorbitant insurance requirements, permits, licensing and
every kind of tax under the sun. What business wouldn’t think twice
about building a new factory in the US?