Think about regulation before you ask for it. Consider carefully the laws you enact.
You may get more than you bargain for….
Suppose you legislate against high risk/high reward endeavors.
What then?
The brilliant researcher is asked to, “Join our firm. Cancer is destroying thousands of lives and we’re investing everything to find the cure. We need your genius leveraged against this great need. Of course, if we fail – after you’ve invested a decade of your life in our cause – you’ll receive minimal compensation for your effort.”
The courageous physician is asked to, “Come quickly! This patient coded and you are the one we’re counting on to save her life. We need your skill. None of us can do what you can do. Please help us save her! Of course, you should bear in mind that if she dies, you’ll have your salary capped, we’ll publically blame you for the loss and the ensuing lawsuits will take everything you own.”
The remarkable business leader is asked to, “Fix this mess. The company has negotiated some bad deals. Toxic assets are killing us. Not many people could fix this problem; truth is, not many people even understand this problem. Few would even attempt what we’re asking you do to. Of course, you’d do well to remember that if you fail to rescue this industry, fail to deliver seventy-hour-work-weeks for the handsome compensation of $1 per year or fail to make everyone happy, you’ll have your name drug through the mud, your address publicized, your children exposed to angry protestors and your assets taxed into oblivion.”
Do we really want to reduce the reward for risk?
Do we really want to incentivize safety-first, low-level, risk-averse living?
Do we really want to give high-capacity people little reason to produce more and lots of reasons to produce less?
Better pay attention friends. That’s what’s on the table… and it’s about to be served.
Proverbs 28:2 - When a nation sins, it will have one ruler after another. But a nation will be strong and endure when it has intelligent, sensible leaders.
Chilling!!!!!!!
Posted by: brianburris | March 26, 2009 at 11:08 PM
AMEN!
Posted by: Ron Windbigler | March 27, 2009 at 09:11 AM
Classical economics of the austrian way. Beautiful. We all want Keynesian economics to work, problem is, history shows us that every time it is tried, it fails. We long for the utopia that Keynesianism promises, but markets work perfectly every time they are left alone to do so. I appreciate your insight on matters such as this, that will continue to affect us so much that we can strike up conversation with a complete stranger and segue into the hope that is, life as a Christ-follewer. What a great opportunity.
Posted by: Tony | March 27, 2009 at 10:46 PM
Well said!
Many of the foundational principles of our nation are under attack, and the economy is being used as an excuse for "change". Hopefully, we will learn that a man's past steps, votes, associations, and statements really do clearly show us the direction a man is going. (I think I've heard something like that before!)
Our focus on the economy is distracting us from perhaps the even more catastrophic consequences of the growing Iranian/Soviet alliance.
Posted by: Val Qualey | March 31, 2009 at 10:09 AM