Preachin' to the Choir

While I know that my readers are exceptionally intelligent individuals for whom the next few lines will be somewhat redundant because I know you already understand and agree with what I'm going to say, what we in West Texas call "preachin' to the choir", I feel the need to talk about some basic economic principles that neither the government or most people seem to understand these days.  So friends, bear with me for a bit while I get this out of my system.

Basic concepts of economics:

1.  People create businesses to make money.  Profit is the driving force for all businesses.

2.  Profit drives incentive.  When a business makes money, it is driven to provide it's good or service in a better manner.  Having profit to invest in the business allows for innovation in product design that create a better version of the product and innovation in production methods that can reduce the consumer cost of a product.  It also allows the business  to grow to produce more of the good or service provided.

3.  When businesses grow because of profit, they hire employees to assist them in continuing the cycle of investment, production, sale and profit.  If conditions require, businesses contract reducing employees as a variable cost to be controlled.

4.  As businesses grow, they need more and more highly skilled employees to produce and market a better product.  In order to attract the best talent, businesses offer "benefits".

Given these economic truths, other truths become apparent:

1.  Profit is good.  Without profit businesses don't stay in business.  No business, no employees,
2.  The largest cost to any business is payroll.  Simply put, people cost money.
2.  No one has a "right" to a job.  Businesses hire employees as they need them.  When the need no long exists, the employee is released.
3.  Employer provided benefits are just that BENEFITS.  The employee does not have any "right" to them.  Should the employer choose to withdraw any or all benefits from the workplace due to profit loss they may do so.


Government intervention in business ALWAYS hurts the EMPLOYEE more than the business.

1.  Taxes reduce profit.  Without profit, businesses do not hire or provide benefits to those employees that they retain, or they lay off employees.
2.  Excessive regulations on workplace "safety" stifle innovation and cost the business profit resuling in fewer employees.
3.  Government mandates for the amount and quality of any 'benefit" results in higher costs and lower profits for the company.  Lower profits result in fewer employees.

Simply to recap, businesses are in business to MAKE MONEY, not to provide jobs or benefits.

To anyone who understand these basic concepts of economics and business, it is not surprising that some of America's largest corporations are reporting how much it is going to cost to implement the new mandates included in the health care reform law.

It should come as no surprise when these companies drop the health care and prescription drug benefit that they have provided their employees.

It should also come as no surprise if they cut their existing employees to make up for the cost if they decide to continue to provide benefits.

Don't even get me started on Unions!

OK, I'm finished preaching now.  I do hope that the members of my choir will carry the good news to those still suffering in darkness, and maybe someday the rest of the congregation will understand that every time the government HELPS us, WE are the ones who PAY for it, one way or another.