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29/01/09

Why big government is doomed to fail

From the CF&P Foundation: Dr. Richard W. Rahn would like to share the Center for Freedom and Prosperity Foundation's new video, Obama's So-Called Stimulus: Good For Government, Bad For the Economy:

http://www.youtube.com/watch?v=2mKE16Exh9k

The video explains why Obama's dramatic expansion of the burden of government spending, based on the discredited Keynesian theory of economics, will not be successful. The video explains why the proposal is best described as a combination of ineffective government spending and gimmicky tax cuts. The video's narrator, Daniel Mitchell of the Cato Institute, explains that history provides ample evidence that smaller government is the true recipe for economic growth

Please take a look and tell us what you think. And please don't hesitate to share the video since that has been the key to the success of this educational project.

Web Links to Obama's So-Called Stimulus Video:

YouTube
http://www.youtube.com/watch?v=2mKE16Exh9k

Capitol Hub
http://capitolhub.com/video/8688/obama%E2%80%99s-so-called-stimulus-good-government-bad-economy

Google
http://video.google.es/videoplay?docid=-8675432343935159747

Yahoo
http://video.yahoo.com/watch/4363438/11710053

Executive Summary for the Obama's So-Called Stimulus: Good For Government, Bad For the Economy video:

"President Obama wants Congress to dramatically expand the burden of government spending. This CF&P Foundation mini-documentary explains why such a policy, based on the discredited Keynesian theory of economics, will not be successful. Indeed, the video demonstrates that Obama is proposing - for all intents and purposes - to repeat Bush's mistakes. Government will be bigger, even though global evidence shows that nations with small governments are more prosperous."

The following is the link to other CF&P Foundation videos including Tax Competition Primer, Global Flat Tax Revolution, Cutting the U.S. Corporate Income Tax., a three part series on the Benefits of Tax Havens and a another three-part series on the Laffer Curve.

Link: http://www.freedomandprosperity.org/videos/videos.shtml

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28/09/07

Goodbye Mr. Keynes

Permanent link Af Kategori: Arthur LafferSimon Espersen, 16:13:15, Kategorier: Milton Friedman, J. M. Keynes, F. A. Hayek, Ronald Reagan, Richard Rahn, Alan Greenspan, Arthur Laffer, Nobelpris,

The U.S. and most other developed countries followed Keynesian economic prescriptions in the 1950s, 1960s and 1970s. However, it was increasingly apparent by the 1970s that the Keynesian model was not working in that "stagflation" had developed (i.e., a stagnant economy and high inflation). Two giants of the economics profession, Nobel Laureates Milton Friedman and F.A. Hayek, and their followers had long been critics of Keynesian economics, and their forecasts had come true. Professor Robert Mundell of Columbia University, who also won the Nobel prize, and his associate Professor Arthur Laffer of Chicago (following in Friedman's and Hayek's footsteps) argued that the solution was to reduce high marginal tax rates on work, saving and investment to revive economic growth and, at the same time, reduce the growth of the money supply to reduce inflation.

This was precisely what was done in the early 1980s, and it worked better than expected. Mr. Reagan brought in a world-class team of economists, including the late Norman Ture as undersecretary of the Treasury for tax. Paul Volcker (originally appointed by Jimmy Carter) and, subsequently, Alan Greenspan at the Fed carried out the new monetary policy.

- Richard Rahn in Revival of the tax hikers.

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29/11/06

Sammenhængskraft og enhedsskole ala islam vs. ideerne om oplyst egeninteresse

Jøder er nazister, præsident Bush skal dræbes med strøm og freden i Mellemøsten kommer først, når alle jøder er lagt i kister. - Sådan lyder budskaberne i en tekst, som børn i en koranskole i Odenseforstaden Vollsmose i efteråret har arbejdet med. Teksten gengives i en artikel af lektor ved Center for Mellemøststudier ved Syddansk Universitet Helle Lykke Nielsen, der har modtaget den anonymt.

- Det kan man læse i Jyllands-Posten.

Integrationsministeren er overrasket.

- Så var det måske en ide at læse kommentaren Undervisning ala PLO. Mon ikke en god del af EU-støtten også går til denne form for "undervisning"?

Og jævnfør en tidligere kommentar om oplyst egeninteresse, så var det måske på tide at vi i Danmark begyndte at forsvare ideerne om personlige fordele ved at lære, producere, tænke, tale, læse og skrive; - i modsætning til ideerne om at man skal leve og ånde for fælleskabets skyld, og /eller for at holde hjulene i gang.

For alternativet til ideen om oplyst egeninteresse, er ikke desto mindre netop de samme mystiske opfordringer til sammenhængskraft, folkevilje, fællesskab, fælles fodslag m.m., som har været hovedreglen i de fleste kulturer og som i ovenstående islamiske tilfælde nu bruges i en ekstrem form til krigsforherligelse og hjernevask.

Men den grundlæggende forskel her er således den mere fundamentale, der handler om, hvor vidt man respekterer mennesket som et frit og enestående væsen med retten til at forfølge egne mål, eller omvendt ser mennesket, som et middel til bestemte menneskers mål - hvad enten disse så er religiøse (islam) eller verdslige (kollektivisme fra socialisme til nationalkonservatisme).

En venstre-højre-skala, der tog afsæt i kollektivisme-induvidualisme, ville således også placere budskaberne fra PLO og koranskolen på venstre side af spektrummet, vel at mærke sammen med megen af den retorik, der kommer fra dele af de Konservative, DF og Venstre, i dag (vel at mærke ofte de toneangivende dele, mens opposistionen i Venstre netop er kendetegnet ved at være ude i kulden - jf. en aktuel degradering).

Så tænk hvis de politikere, der ikke ønskede at spænde individet for et eller andet "socialt"/nationalt projekt opdagede, at de havde netop dette til fælles, og derefter dannede et nyt parti, der konsekvent havde som mål at ville forsvare den enkeltes ret til at bestemme selv. - Det ville i øvrigt også betyde langt mere for at kunne opnå et lavere skattetryk end alverdens henvisninger til lafferkurven. For de høje skatter (som blandt andet bruges til at finansiere bestemte danskeres bud på en enhedsskole) er netop et udtryk for ovenstående tendens til den kollektivisme og den altruisme, der sikrer at eksempelvis forældre sender deres børn i en skole, hvor de lærer at ofre sig. - det vil sige deres fornuft, deres liv, deres frihed og uafhængighed.

Mere om altrusime vs. oplyst egeninteresse i artiklen Moral vigtigere end økonomi.

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30/04/06

CSR - nej tak!

Permanent link Af Kategori: Arthur LafferChresten Anderson, 12:48:36, Kategorier: Innovation og Vækst, Ideologi & Politik, CSR, Profit, Milton Friedman, Arthur Laffer,

»Social ansvarlighed - fra idealisme til forretningsprincip er titlen på en ny bog, som udkommer snart.

I bogen, som er skrevet af Helene T. Djursø og Peter Neergaard, belyses teorier om social ansvarlighed ud fra et virksomhedsperspektiv, og en række fremtrædende erhvervslederne giver deres bud på fremtidens udfordringer inden for social ansvarlighed.

Men Social Ansvarlighed eller CSR, som det også kaldes, er ikke vejen frem for erhvervslivet!

Bogen indeholder da også et teoretisk afsnit om Milton Friedman, som korrekt påpeger, at den eneste form for ansvarlighed er overskudsmaksimering.

For at sige det ligeud: Enhver form for Corporate Social Responsibility, som ikke udspringer af ønsket om at overskudsmaksimere, er forkastelig - og samfundsskadelig!

Det betyder bestemt ikke, at det ikke kan betale sig for virksomheder at investere i mindre sygdomsfravær, uddannelse af medarbejdere eller lignende - men det skal altid gøres med bundlinjen i baghovedet.

Problemet er, at når virksomheder taler om deres sociale ansvar, så undskylder de reelt, at de har tjent penge - og det er den sikre vej til mere regulering, og dermed lavere vækst!

I Berlingske Tidende siger John Lundsgaard (direktør for Spar Nord Bank, red.), at der kan sagtens ske mere, og han efterlyser, at virksomhederne kvalificerer sig bedre til at påtage sig det sociale ansvar. Ikke fordi det nødvendigvis øger indtjeningen, men fordi det at tage ansvar hører med, når man har magt.

Men virksomheder har ikke anden magt, end den som forbrugerne har givet dem - og virksomhedsledere, som ikke fokusere på at sikre størst muligt afkast til deres ejere, arbejder direkte i modstrid med deres ejeres langsigtede interesser.

Faktum er, at når en virksomhed sælger et produkt (eller en serviceydelse) til en kunde - så er begge parter mere tilfredse. Ellers ville handlen ikke finde sted. Profitmaksimering er dermed direkte med til at bidrage til mere tilfredshed i samfudet.

Som Friedman skriver så:

Businessmen who talk this way are unwitting puppets of the intellectual forces that have been undermining the basis of a free society these past decades.

Og han fortsætter:

In a free-enterprise, private-property system a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom. Of course, in some cases his employers may have a different objective. A group of persons might establish a corporation for an eleemosynary purpose-for example, a hospital or a school. The manager of such a corporation will not have money profit as his objective but the rendering of certain services.

In either case, the key point is that, in his capacity as a corporate executive, the manager is the agent of the individuals who own the corporation or establish the eleemosynary institution, and his primary responsibility is to them.

...

I have been impressed time and again by the schizophrenic character of many businessmen. They are capable of being extremely farsighted and clear-headed in matters that are internal to their businesses. They are incredibly shortsighted and muddle-headed in matters that are outside their businesses but affect the possible survival of business in general. This shortsightedness is strikingly exemplified in the calls from many businessmen for wage and price guidelines or controls or income policies. There is nothing that could do more in a brief period to destroy a market system and replace it by a centrally controlled system than effective governmental control of prices and wages.

The shortsightedness is also exemplified in speeches by businessmen on social responsibility. This may gain them kudos in the short run. But it helps to strengthen the already too prevalent view that the pursuit of profits is wicked and immoral and must be curbed and controlled by external forces. Once this view is adopted, the external forces that curb the market will not be the social consciences, however highly developed, of the pontificating executives; it will be the iron fist of Government bureaucrats. Here, as with price and wage controls, businessmen seem to me to reveal a suicidal impulse.

...

there is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.

En ting er således retorikken, hvis den i det mindste var fremmende for virksomheden, men en analyse af bl.a. Laffer har vist, at there are some indications from the study that CSR activities lead to decreased profitability.

Og den viser, at der ikke er hold i argumentet om at CSR er both good for business and good for the bottom line.

Dansk (og internationalt) erhvervsliv har ikke til opgave, at være filantroper eller foretage sig andet, end det som er godt for deres langsigtede bundlinje! Og det er social ansvarlighed, som doktrin ikke!

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