Top 10 basic economic truths

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Top 10 basic economic truths
BY HOWARD J. BLITZ
Jan 11, 2006

The following are the top 10 basic economic truths, in descending order, that when learned and understood by individuals would reduce the size of government to that which our American ancestors envisioned, allow individual liberty to prevail and enhance the social and economic lives of all.

10. The greater number of businesses making a profit, the more jobs that are available.

9. The average profit of 6 percent of sales that is earned by businesses is a small price to pay to avoid the living conditions of Cuba, North Korea and the former Soviet Union.

8. Capitalism, unlike socialism and communism, is just the natural outgrowth of freedom and requires no manifesto, central plan or state coercion to sustain itself.

7. Wage increases depend on productivity increases, which in turn depend on capital investments, which in turn depend on capital accumulation, which in turn depends on savings, which in turn depends on a government tax-and-spend policy that does not discourage savings and suck capital from the private sector.

6. Passing minimum wage laws destroys jobs for those who need them the most, the unskilled, low-wage individual.
5. Neither the president nor congress can create jobs. Jobs are created by individuals who serve a need that customers have.

4. Government officials cannot provide the necessities of life like health care, food, shelter and clothing without resulting in shortages, rationing and a lack of innovation.

3. When government officials make a good or service “free,” the cost of that good or service increases, as is the case for the two most socialized segments of America, health care and education.

2. An increase in the supply of anything, including money, makes the value of each individual unit, including money, decrease. That is the reason inflation continues to exist — because the Federal Reserve System continues to increase the supply of money in society.

1. And, finally, the number one basic economic truth that would reduce the size of government to that which our American ancestors envisioned, allow individual liberty to prevail and enhance the social and economic well-being of all individuals deciding for themselves what type of social and economic life they will lead. All the government tinkering has yet to ever change that without the dire result of tyranny.

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-- At 6:30 p.m. Thursday at the Yuma County Library, the public is invited to attend the People for the USA meeting to hear Don Goldwater present his views on the many situations Arizonans face as he seeks to become the next governor of Arizona.

-- The Freedom Library is still taking applications for its 16-week Constitution scholarship class that began Jan. 10. Individuals can register for the class by completing the application form found at www.freedom library.org.

The class meets on Tuesday evenings from 6 to 8 p.m. at The Freedom Library. There is no charge to take the class, which offers individuals the opportunity to earn a $1,000 scholarship. Adult scholarships are available.

-- The public is also invited to attend The Freedom Library Annual Constitution Seminar on Jan. 19 at 7 p.m. at the Booth Machinery conference hall, located on Araby Road two blocks north of 32nd Street.

Three $1,000 scholarships will be presented to those who completed The Freedom Library Education Program, and Tibor Machan, columnist for The Sun and professor of ethics and free enterprise at Chapman University, will speak on “Can the U.S. Constitution be Saved?”

There is no charge to attend.

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Howard J. Blitz is a local libertarian and
president of The Freedom Library Inc.,
2435 S. 8th Ave. His e-mail address is
info@freedomlibrary.org