Someone of the Liberal Left might try to criticize the policies of conservatives by saying that Free Enterprise only makes the Rich richer and the Poor poorer. A comment like that reveals the lack of knowledge and understanding of how money works.
Here is an attempt to give a truthful answer to that Leftist claim against free Enterprise.
When money is free to move around in the public sector new businesses and more jobs are created and more poor are being lifted from being poor and they enter the middle class.
When governments are fortunate enough to increase the size of the middle class remember the middle class does not grow from the members of the rich, the middle class gains members from the poor. Therefore the poor benefit and are growing richer. That is another fact the Leftist politicians try to ignore and hopes that knowledge and understanding is never grasped by the public.
BTW, there is a sector, a fourth one, no one is talking about and they are important also. Those who are in that sector have severe problems, malnutrition, lack of adequate housing, education, uncared for illnesses and no jobs. They often have no way to get out of this condition. Those in this fourth sector are the poverty stricken of the world. To those unfortunate poverty stricken individuals America's poor look rich. Thank God America had the Free Enterprise system for many years in the past because Free Enterprise has supplied more jobs and a larger money pool than all other countries in the word. That blessing has made the poverty sector in America the smallest in the world. Not only is the poverty in America almost non-existent but the poor in The United States are the fattest poor on earth.
So what makes people poorer and what causes poverty? What is it that decreases the size of the middle and rich classes? It is the lack of freedom from government intrusion, shackled Enterprise and depressed profits. This lack of freedom extinguishes the formation of new companies and products which make more jobs.
When money is free to circulate in the free private sector new and improved products hit the market, new companies are created, new inventions come on line and new jobs are available.
So, what kills freedom? Over regulation and over taxation; 1) over regulation stifles creativity because with regulation comes fees and lawyer costs. Regulations work to punish the ones with ideas and inventions because they end up working months and paying vast sums just to get their idea or invention to market. Regulations punish the public with more expensive goods and services too. 2) Over taxation takes money out of the private sector where money is made and puts it where money is wasted on projects that do not make money. Even important government projects, like national defense does not make money. Money taxed is money without freedom. You might ask, what about government salaries, doesn't that money go back into the private sector? Yes but only in lesser amounts; that's why the cost of government needs to be well below the Gross National Product (GNP). When the cost of government equals GNP there will always be a diminishing supply of money until the nation goes broke.
By, John L. Kinikin
By, John L. Kinikin
