Thursday, January 12, 2012

Why Should Business Or Governmemnt Win?

The political belief in small government, or at least small federal government by shunting most decision making to the states is a federalist belief. In business it's Creative Destruction that's the favored approach. Now don't get me wrong, there are good and valid points in both. Smaller government can help in many ways and on  many issues. We all agree however, that the federal government needs to do the military thing and in foreign relations we need to appear and be strong and many if not most inter-state activity needs to be handled by a strong Fed. Otherwise the states would begin to act like separate little countries. There's little agreement on social safety nets, therefore the problem with states is that no two states provide equally for the well being of it's citizens. In some instances there needs to be guidelines for the states to follow. That would need to come from the Fed. There are many other issues as well. Now, in business, the thinking is Creative Destruction. Simply put, that means it may be necessary to destroy a company in order to remake it more profitable. In some cases it means to modernize, or switch to robotics or in some cases it means to ship jobs overseas. The important obligation is always to increase profits when it comes to creative destruction. Profits is all that matters in the long run. And from a strictly business outlook, that's correct. The problem is that life, the world, involves more than strict business decisions. In the real world there are people to consider. The coal industry is a handy example although every industry has had to sort these things out. In the coal industry, safety has always been an issue. Left to their own devises, the coal barons would never have submitted to safe working conditions. That's been proven even by recent events in the industry. The same is true for environmental issues. There must be a balance between business's creative destruction and the peoples needs, and that means government oversight. If business was more focused on human interests they might make less in profits, but they would have a better relationship with labor and still make a profit, just not as large a profit. Since that won't happen on it's own, a strong federal government is necessary to insure it will happen. So while small government is good for industry and the creative destruction theory, neither is good for people. The trick is to find that middle ground or sweet spot. What we need is a few Rebublicrats and Democans. Maybe more than a few. That can't happen in our current two party system. Too much rancor.

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