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Landing a BIG Job in the Recession: A Capitalism Success Story

By: Steve Johnson

10/15/2009 - 36 Comments

A few days ago I landed the biggest job that I have ever had with my custom website design business.

There are many reasons why I got the job, which I’ll talk about, but the most important part is that landing this job clearly shows how pure free market capitalism is the best solution to the recession.

Free market capitalism is not understood very well today because of the endless war against it, by the media, government corruption and special interest groups that have hijacked the wealth of our nation.

I’m going to use this experience to explain what capitalism is and how important it is to protect against the powers that be so that someday we can have an actual economic recovery – rather than the deepening recession that we have today.

Here are a few of the reason I landed a BIG job;

Private Property – Private property is a vital part of capitalism because it allows personal ownership of assets, which promotes a self interest in those assets.  Assets like farm land, private businesses and all types of equipment used by companies to increase production are best maintained when they are privately owned.

In my case, I own my business and I alone will suffer a personal loss if my business does not succeed.  My business is not financially supported or backed by the government in anyway.  The private ownership of my business provides me with the motivation to succeed, unlike businesses that are partially owned by the government or have been labeled ‘too big to fail’.  They do not have this vital ingredient to succeed and therefore will inevitably fail to produce a profitable result as history has shown time and time again.

Free Labor – Free labor is labor that is not controlled by governments wage controls or government supported unions.  Free labor is the ability of employees and employers to change their careers and wages according to the market. 

When the market is strong, employers are forces to paid higher wages to keep vital resources from going to work for competitors. And when the market is weak, employers often lower wages to allow them to lower expenses and prices of products and services so the business can continue to operate at a profitable margin while workers remain employeed. 

This is not the case when labor is controlled. A few months ago the government increased the minimum wages to $7.25 per hour, which forced many small businesses who rely on low cost labor to cut jobs further increase the unemployment. 

Union contracts also reduce the flexibility of free labor, as can be shown by the number of union carpenters in my state that are unemployed.  I read the other day that over 1000 union carpenters are unemployed in MN alone. Contras that with the carpenter that I hired to finish my basement this summer, who has been busy all year. 

Unions are special interest groups that gain political influence by joining together, but their influence often hinders capitalism by controlling labor and prices, leading many businesses to bankruptcy – which then need to be supported by the taxpayers, through government intervention. GM is a prime example. The public educational system, which contains the two largest unions in the U.S., is another example supported by an ever increase in federal spending.

In my case, I was able to negotiate a price for my service which results in a lower per hour wage than I usually attain.  This is a win-win for everyone, but only because I own my business and control the cost of my labor. In other industries, like health care, the government has already taken so much control over prices and wages that even in a deepening recession, prices are increasing. This is a clear indication that the health care industry is already deeply controlled by the government.

Endurance, hard work and experience – The third reason that I was able to land this big job was because of my business planning.  In the effort to protect my privately owned business from failure, I plan for financial hardships. That means that I have a savings account and I don’t run up a lot of debts, like many of my competitors have done – which are now out of business.  Endurance is a good word for it.  When a market shrinks, the weaker players fail first and that leaves more business for the surviving businesses.

Anti-capialist don't create plans to protect their businesses from financial hardships. Their plans focus on government policies to protect them from failure. Their emergency savings plan is a government bailout - which is a taxpayer funded savings plan.

Hard work and experience are big factors in free market capitalism, but only if they are allowed to be rewarded.

In this case, I was rewarded for my hard work and experience which has resulted in my reputation to produce a quality product at a fair price.  The people that support the war against capitalism do not like to reward hard work and experience.  They want an easier path. That path is to lobby politicians to pass regulations and laws that give their businesses a competitive advantage to protect their business from competition.  I believe Adam Smith, who wrote about the original advantages of capitalism called this - mercantilism.

That’s it. That is how capitalism works and now it is being undermined at every turn by the war against it that is ragging in our nation today.

If we want an economic recovery, we need to stop the special interest groups that control our economy and our money supply through the Federal Reserve, but this is no small task.  The anti-capitalist are succeeding as the government continues to expand its control over the economy and continues to drive the nation deeper into debt.

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