The link below is to a friend’s blog, a meaty offering for how to intervene (and more specifically, how not to) in that “simple” cycle of economic development I spoke of in my last blog.
Here’s that cycle again:
1. If people have jobs, they’re making money.
2. If people are making money and feel confident about the future, they are not draining safety-net resources—they spend it, they save it, they put it in banks, they borrow it and pay it back with interest, they give to it charitable organizations, they pay taxes on it to “provide for the common defense, promote the general welfare, and secure the blessings of liberty for themselves and their posterity.”
3. If people spend money, well-managed honest businesses selling sought-after goods and services thrive and grow.
4. If well-managed honest businesses thrive and grow, people have jobs.
It’s an ideal cycle, of course, which assumes two things: 1) that those who manage in business know what “well-managed” looks like in terms of the utilization of human and financial resources and the raw materials they employ and 2) that outside influences, like well-intended but tragic governmental interventions, don’t cripple those who do. Unfortunately, they are assumptions. And we know what assuming does, all too well.
Thanks, Pat. Here’s hoping they are able and that business managers today have a clue.