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Silicon Valley Innovators: Gov’t Is Biggest Barrier to U.S. Innovation

in Liberator Online Archives by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 21 of the Liberator Online. Subscribe here!)

Innovation's biggest barrierWhat’s the worst drag on American technical innovation?

According to some of the most creative and successful people in America, it’s… government.

In a new “Silicon Valley Insiders Poll,” The Atlantic asked 50 “Silicon Valley Insiders” — described as leading “executives, innovators, and thinkers” — this question: “What’s the biggest barrier to innovation in the United States?”

The top three answers:

  1. “Government regulation/bureaucracy” — cited by 20% of respondents. 
  2. “Immigration policies” — cited by 16%.
  3. “Education” — yet another thumping government failure — cited by 14%. 

As Reason’s Nick Gillespie notes in the Daily Beast: “Given the role it plays in setting immigration policy and controlling education at all levels through a mix of money and mandates, that means government takes the gold, silver, and bronze medals at making life harder.”

(Fourth place was “Talent Shortage,” cited by 10% of respondents, which is also at least in part a consequence of the second and third government-created barriers.)

Further, it’s not just the tech sector reporting serious damage from government. A 2010 survey conducted by the National Federation of Independent Businesses asked small business owners to identify the biggest problems they face. Twenty-two percent of respondents said the single most important problem facing small businesses was “Taxes. Another thirteen percent said “Government Regulations and Red Tape.” Both, of course, are direct manifestations of Big Government. Combined, they add up to 35% — making Big Government the biggest problem small businesses say they face.

And Americans in general seem to agree. As we reported earlier this year, a Gallup poll found a record 72% of Americans picked big government as “the biggest threat to this country in the future” compared with big business or big labor.

Won’t Big Businesses Abuse Their Power in a Free Market?

in Communicating Liberty, Liberator Online Archives, Libertarian Answers on Issues by Mary Ruwart Comments are off

(From the Ask Dr. Ruwart section in Volume 19, No. 21 of the Liberator Online. Subscribe here!)

Big BusinessQUESTION: If you free big businesses from government regulations, how do you keep these same businesses from becoming an aristocracy and turning America into a feudal state?

MY SHORT ANSWER: In a libertarian society, you, the consumer, control businesses by voting to buy or not buy their products. You vote to keep them in business or shut them down. You eliminate the “bad guys” by purchasing only from the “good guys.”

In today’s society, government regulates some companies out of business, leaving a monopoly (like most local utility companies) or a cartel (like the banking industry). Limiting your choices limits your control.

Government doesn’t keep big business in check; government keeps big business big.

Business only has two ways to get big: by serving customers better than the competition or by getting Big Brother to regulate their competition out of business. Keeping government out of the marketplace keeps business in its true service role.

* * *

LEARN MORE: Suggestions by Liberator Online editor James W. Harris for further reading on this topic:

* “Big Business and Big Government“ by Tim Carney, Cato Institute Policy Report, July/August 2006.

EXCERPT: “The history of big business is the history of big government. As the federal government has progressively become larger over the decades, every significant introduction of government regulation, taxation, and spending has been to the benefit of some big business. …big business and big government prosper from the perception that they are rivals instead of partners (in plunder). The history of big business is one of cooperation with big government. Most noteworthy expansions of government power are to the liking of, and at the request of, big business.”

* “The Only Way to Get Money Out of Politics“ by Sheldon Richman, Future of Freedom Foundation.

EXCERPT: “It’s a great myth that businesses, especially big prominent corporations, want less government intervention in the economy. On the contrary, they love government power because it provides things they can’t achieve in a freely competitive marketplace where force and fraud are barred. Corporations support and lobby for interventions that benefit themselves by hampering their competitors, both foreign and domestic. You often find companies asking for tariffs and other restrictions on imports that compete too effectively with their products. Agribusinesses welcome government (taxpayer) help in selling their products abroad; they also love subsidies, price supports, and acreage allotments. … In American history big companies were behind virtually ever advancement of the regulatory state.”


Short Answers to Tough QuestionsGot questions?  Dr. Ruwart has answers! If you’d like answers to YOUR tough questions on libertarian issues, email Dr. Ruwart

Due to volume, Dr. Ruwart can’t personally acknowledge all emails. But we’ll run the best questions and answers in upcoming issues.

Dr. Ruwart’s previous Liberator Online answers are archived in searchable form.

Dr. Ruwart’s latest book Short Answers to the Tough Questions, Expanded Edition is available from the Advocates, as is her acclaimed classic Healing Our World.

How the Government Stole Christmas

in Liberator Online Archives by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 18, No. 24 of the Liberator Online. Subscribe here!)

Forget the Grinch — it’s the government that’s stealing Christmas.

So reports Americans for Tax Reform, a non-profit group that works for lower taxes and smaller government. (The following article is based on their 2011 report.)

The holidays are supposed to be a season for giving and spending time with loved ones. However, Uncle Sam has forced taxpayers to add him and his greedy local and state relatives to their gift list. Of an identified $10.72 billion of holiday spending, an incredible 43.36 percent is due to government taxes, fees, and other costs.

If you are one of the 93 percent of holiday revelers traveling this season, you will pay $69.65 in gas taxes for the average $152.47 round-trip excursion — 45.68 percent of the cost of the trip. Taking a rental is another convenient option, but 38.77 percent of your car’s rental cost is due to taxation, particularly from state and local governments.

Choose to fly to visit friends and family and 42.47 percent of your trip is made up of government costs. If you retreat from your in-laws to a hotel, remember that 39.39 percent of the cost of your stay is funneled back to the government. In Christmas 2011, the government stuffed its stocking with $3.79 billion in traveling taxes.

Holiday revelers enjoy an estimated $992 million in alcoholic beverages to celebrate the season. Savor your next mug of eggnog, because 56.31 percent of the price is taxes. Government guzzles 44.33 percent of your seasonal beer and drives up the price of your glass of wine at Christmas dinner by 32.77 percent. Sipping a soft drink won’t let you escape frosty government fees — 27.98 percent, or $61 million in taxes, is attached to the cost of soda.

When Santa comes down the chimney this year, he’ll have to save room in his sack for Uncle Sam’s gifts. Government gets $21 billion of a cumulative $69.1 billion spent on presents, consuming nearly a third of Christmas gift-giving.

All told, the government collects around $26 billion in new revenues over the holiday season.

That’s naughty — and definitely not nice!

(Please note: This excellent and entertaining report was prepared in 2011 by ATR. We deleted a section referring to a proposed Obama Christmas tree tax, which is to our knowledge no longer relevant. When sharing this information with friends and family, just add “A couple of years ago, Americans for Tax Reform found…” in case some of these figures have since changed. To see if ATR has updated this report since we published this issue, visit their website.)