Small Business Blog from Atlantic Canada

I am "CA" Atreya (PMP, MBA), the author of this blog. I help businesses in Atlantic Canada achieve their BHAG successfully. You may subscribe to this blog using a feed reader (RSS).

If you recognize the question, “Who is John Galt?” then you have no doubt read Ayn Rand’s “Atlas Shrugged”. This question portrays a sense of helplessness and despair in her novel as the government suppresses free private enterprise in the name of “public good”. With each passing day, did you not notice the things that are being done in the interest of the “public good”. Are we traveling down the same path as mentioned in Rand’s book? The similarities are striking.

Short term stock returns

Some CEOs of big businesses are starting to ignore the long term value generated and focus on stock market returns. The stock market has become the barometer of an organization’s success instead of the value provided to its customers. Remember James Taggart and how Francisco disrupts his wedding party?

Rewarding incompetence with bail-out money

Businesses should bear the responsibility of their actions. When, as an individual, I make financial decisions that could force me to declare bankruptcy, then why not the banks and financial institutions. Liquidate the insolvent banks piecemeal and let a new responsible and smarter system arise out of its ashes. Recall how, in the book, incompetent businesses were granted subsidies and the industrialist who invented a new metal was forced into giving it up for “public good”.

Regulation

This sends me over the edge. Every time I hear someone say, “we need better regulation!” Do people really think that regulation is the answer to all our woes. Think of all the regulations imposed on Dagny Taggart, the railroad owner and an enterprising industrialist in Atlas Shrugged, in the name of public good. Regulation and government intervention is not the answer to the crisis.

Regulation is a means by which the government will take more money from my pocket. In corrupt countries regulations are used to create barriers for business. It is impossible to do business without breaking the regulations.

Chancellor Angela Merkel of Germany rejected Mr. Obama’s plea for other nations to follow America’s lead and pledge greater fiscal spending to stimulate their economies. She said more spending was not worth debating. “That is not a bargaining chip,” she said, adding, by contrast, “Regulation is something that is in everyone’s interest.” Need I say more? Who is John Galt?

Taxes

What better way to get out of a recession than to put money in people’s pockets! New Brunswick seems to understand that where the Premier Shawn Graham promises to lower personal income taxes to 9% and 12%. I say abolish taxes totally with immediate effect. Imagine the money the government will be putting into people’s pockets. It is a more comforting thought that the government is in deficit due to taxes rather than doling out bailout money to incompetent businesses.

According to a data (a bit old - 2005) tax revenue for Canada was around 34% of the GDP, the US about 25% of the GDP, France was about 43% of its GDP. According to the CIA World Factbook, Canada’s GDP in 2008 is estimated to be at 1.5 trillion dollars and estimated US GDP is $14.2 trillion. A reduction in taxes by even 10% across the board should provide the fuel growth. But no, President Obama is talking about raising taxes and his budget is being approved at the time of this writing.

So, do you think that the US, and subsequently the world, will slide into anarchy that Rand penned in her book? The path we have started traveling down on certainly suggests that end. It’s too soon to tell. Hopefully, there’s a light at the end of the tunnel and its not that of an oncoming train.

[Update]: You might be interested-
Obama turns left
Obama doesn’t get roots of crisis

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