Government Verses Business Profits, Growth, and Jobs

Excessive taxes and regulations, and poor governmental policies are major business costs that reduced resources available for business creation and expansion. For example, U.S. corporate taxes are the highest in the world, and high U.S. progressive income taxes — that President Obama proposes to increase — drive many jobs offshore, and stifle growth. A fundamental question is: “What are the impacts of government driven business costs on the whole nation?”

A job creating business is started, grown, and sustained based on stakeholder — owners’ or shareholder investors’ — expectations of the business making a profit and/or growing in value. Businesses require financial, human, and physical resources, and good competitive business strategies for utilizing these resources in order to meet stakeholder expectations. Government policies influence both available resources and competitive strategies.

The Business Verses Government wheel shown below shows the results of excessive taxes, regulations and poor government policies. The cycle starts when investors decide to invest their time (i.e., a small business owner) and money elsewhere because their expectations for profit or growth are not being met. If there are no investors eventually there is no longer a business. The cycle ends with no business, no jobs, no taxes for governments, and an imploding nation.

 

Citizens that accept “business scapegoat” political rhetoric rather than fundamental business facts will suffer the consequences with all the rest of us as we are overtaken by foreign competitors.

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About

Dr. Cleland’s Ph.D. is from Purdue University where he specialized in complex systems theory. His technical training and experiences includes analyses of many types of systems, involvement with numerous federal, state, and local agencies, and management of a broad set of set of professionals, services, and trades people. He has managed scientists, engineers, policemen, firefighters, environment, health, safety and emergency planning experts, building trades and maintenance crafts personnel, and others.

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