Frank X. Ryan, a CPA specializing in corporate restructuring, wrote an article in the Sunday edition of the Lebanon Daily News on 5/3/09. His well written article is titled ” Government not abiding free-market rules“.
Mr. Ryan wrote ” I have noticed a series of truisms that have been continously violated by governments in their feeble attempts to control economic performance. These principles are based upon my obseravations of the self interests of mankind which influence the performance of free markets”.
He lists 7 principles:
1. “Governments can never react as quickly as free markets.”
“Governments solve yesterday’s problems with yesterday’s solutions thereby setting the stage for tommorrow’s crisis he goes on to say.
2.”Free markets will always win.”
3. “You cannot tax your way to prosperity.”
In my opinion this is common sense.
4.”A nation’s tax rate operates in inverse relationship to its productivity.”
Generally speaking, Decrease tax rates = increase in productivity and Increase tax rates = decrease in productivity.
5. “Governments always overreact and underpreform.”
Solutions will be “too little and too late.”
6. “Remove negative consequences and personal accountability, and a Nation will get more of the same.”
Those so called bailouts will create more disasters.
7. “Nations can fail.”
Can you name any that have?
Mr. Ryan goes on to write: With the principles that I have observed it is obvious to me why our Founding Fathers wrote the Constitution the way they did.” He encourages all citizens to read our Constitution carefully. “Our founding fathers understood the role of government.” He states that governments should provide for common defense, the framework for commerce and the rule of law. Nothing more and nothing less.
