Who is John Galt in 2009?
Atlas Shrugged, by Ayn Rand, poses the question, "What would happen to the economy, government, and/or society if the producers, inventors, and contributors one day stopped.. and disappeared?" We're talking about the people who really move the world. In the book, the first to do so is a man named John Galt, and as he and others realize they no longer have claim to the products they produce or the profit from their efforts, they decide to stop working and giving their creations to the rest of the world. I think of it as if Steve Jobs, T. Boone Pickens, Warren Buffett and other "idea leaders" disappeared.
Could this ever happen? As the government takes a bigger role in struggling industries, the approach is often for those performing well to help those who are not. And while we probably won't see Toyota manufacturing plants writing checks to GM directly, aren't Toyota and other corporations assuming a higher tax burden because of gov't bailouts to GM the same thing? (Their profits...taken) Is it plausible the gov't would put pressure on companies producing more fuel-efficient vehicles to share their methods with the other companies? (Their creations...taken)
Here is another example. Right now, there are people spending time and money to develop shale oil so it can be used cost-effectively as an alternative to crude oil. Once the process is defined and patented, could we forsee the gov't putting pressure on these companies to share this process if the nation had an energy crisis? (Their inventions...taken) Experts still predict oil prices to go above $200 a barrel next year and we saw the reactions when it almost hit $150. Could we imagine the gov't would just take the patent if times were bad enough?
The worst part about any of this happening is that it will be done in the name of the "greater good" or "fairness" as businesses become too inter-connected to be allowed to fail.
I use the gov't in the examples above because it is such a good target :) , but really because as I have watched/read about the healthcare and stimulus plans that Obama says he will introduce, followed the coverage of the $700B and Auto Bailouts, and written my representatives... I can't help but feel like the cult of the "greater good" is growing. And as the pull of others on my earnings grows, will I reach a point where my desire to climb the income tax ladder stops? Will I decide that I will stop producing for others?
I know that everytime I see the word "withholding" on my paychecks, I bristle inside because it means the gov't doesn't trust me enough to allow me to receive my gross paycheck and then send them a check for the taxes... I feel somewhat removed from the negotiations and votes in Washington D.C., but I know I will feel very involved when my paychecks get smaller because the Federal Income Tax, Social Security, and Medicare taxes go up. Let's not kid ourselves, with all the money the gov't is spending, they have to.
5 comments:
Amen to that! (I am Ashlee's cheer friend from high school) My husband and I get so sick our taxes going up, so others can "share the wealth". It is really bad here in Oregon. Why are we punished for getting an education and being sucessful? Great blog, I will check back!
I was just discussing oil prices with my dad. Currently there is a ban on the development of shale oil by the Federal Government. (Because they forgot about the 10th Amendment to the Constitution.)
So gas will prices will rise, airlines will go out of business, the American auto industry will continue to make large SUV's that no one can afford to fuel, and my taxes will continue to rise to continue this brilliant cycle.
Sweet.
Proud to share the wealth!
Let me tell you about my friend Louis. He is not a fictional character like John Galt, he grew up on the south side of Chicago and dropped out of school when he was 14 to start work and help support his family. He worked until retirement age and now collects a very small pension from the box manufacturer where he drove a fork lift.
And there’s Kenny. He also grew up here on the south side. He’s 48 years old and washes dishes at a restaurant 50 hours a week. He recently had to have knee replacement surgery and couldn’t pay his rent and his health insurance while he was out of work.
It's really easy to say I deserve my money and my education all for myself because I worked hard for it, but I think one should consider the favorable circumstances they were born into and how that got them were they are today. Did your parents go to college? Did your neighbors and friends?
What about people who grow up in a culture where no one they know goes to college or makes a good living. I know our great country provides everyone the chance for prosperity if they work hard for it, but it's much harder to do if you don't come from a background where you've had good examples and role models.
Let's be realistic about our tax rates. They're still some of the lowest among developed countries. If I could pay a little more tax so my friend Louis could enjoy some of the very simple parts of life that I do (like not having to heat his apartment from the electric stove on cold winter days) I would gladly do so. If a little more tax helps Kenny get affordable health insurance through the government, sign me up!
Thanks for everyone's comments! I really appreciate hearing views on both sides.
To the last comment (curious if this is Scott or Leisl :) ), I have two comments.
1) I have always said I believe in equality of opportunity and not equality of result. I know that is easy to say having grown up being taught to pursue education at all costs and having a stable financial background, but to me it has a sense of fairness.
2) I also think that paying a higher tax is worth it if it can help those who need help. (I don't believe that anyone who has less financially is that way because of laziness or choice.) But I don't believe that government, given its always growing budgets, system of lobbyists and special interests, and bureaucratic inefficiencies are the best way to help. I just think that allowing private individuals to keep more of their earnings promotes more charitable action.
Hey Eric (it's Scott not Liesl) - Can you tell this is something I've started to care a lot about? I'll email you some economic data from my public policy course I just took. The objective facts seem to show the success of many of the governments social welfare programs in lowering poverty and improving the overall standard of living. I know almost all government programs could be run a lot more efficiently but they do help people and I think more could be done through the government to help more people.
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