November 10, 2011

Private Companies with Public Aided Bottomlines Are Really Government Departments!

And their Executives are truly Government Bureaucrats, Only More Expensive; They Are No Entrepreneurs..
These are especially times where size and functions of Government, and what these cost, are in sharp focus. No wonder, for the Public Deficit has scaled alarming proportions, not much different from countries in Europe that are facing collapse, and are seeking, perhaps undeserved, bailouts from around the World, to hang on to their cozy lifestyles. It’s not very reassuring that “USA’s debt is denominated in its own currency, so no need to worry”, even the people shouting this the loudest don’t really know how much such confidence can be relied upon.

The people that have a Right-of-Center approach to Economics were on the ascendant, and perhaps well deserved, given the scenario. However, they have lost considerable foothold over public imagination because they have focused on things that ought to be the last towards cutting public deficit. They have singularly focused on cutting the most (relatively) relevant Government programs such as Unemployment Support, Social Security and Old Age Medical Security, while given a free pass to Corporations that run their “improving” bottomlines on addition of tax holes that others do not have, and Toplines with wasteful Government procurement. These do not quite add commensurate employment in the economy, because the Executives at the helm of these companies first reward themselves lavishly for this effortless (Government showered) Topline and Bottomline improvements before adding some additional secretarial or procedural staff. The need for hiring robust, commensurately paid workers arises only when there is money to be earned in business, in the marketplace, not when its coming direct from Government. Sham employment created with Government doles forever requires support through public deficit and dilutes the importance and payout for capable workers.

The socialism that the Right-of-Center people, ushered into power in 2010, could have succeeded in cutting by now is this Corporate-Executive welfare. But instead of collaborating with other parts of the ideology spectrum on this, they have merely lip-opposed Corporatism (since these companies are nominally private sector) while opposing everything that Government does directly. A much better strategy for a caucus such as the Tea Party would be to change the order in which it wants to reverse elements of Socialism. Else, they not only risk losing all ownership of the popular disapproval of Executive Welfare on public money, but because of not being in tune with what’s priority of the moment for regular people, they will lose the entirety of the economic agenda to Socialism in abandoning the OWS movement entirely for the Left.

The Right of Center formations have to concede that someone that gets money from the Government (directly or as special tax break) on the promise of creating jobs with it, is a Bureaucrat, and not an entrepreneur, and fighting for his privileges does not strengthen Capitalism. An entrepreneur raises money from private parties, and employs people, in order to make profit that's out there to make! An entrepreneur is not supposed to get profits doled out to him on the hope (read: 'dope') that he will then create jobs with a part of these prefabricated profits! A Bureaucrat, in contrast, provides a service that is needed by public at large, and receives a budget from the Government to do so, with the Government deciding the salary that he will make for his service, as also the salaries of people he will employ in the delivery of the service mandated of him. Even the Socialists are opposing the private sector Bureaucrats' extravagance on public money, so the Tea Party types should be putting their weight to it in the legislature where they have representation and the OWS, at present, does not. If the Tea Party can deliver the Economy from the Corporate Executive bamboozle that it is craving freedom from, there is a chance to stay relevant in the Political Economy, else oblivion into the hands of the OWS.
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