Democrats: Ban Profits?
Democrats have a reputation of being anti-business. Some Democrats draw back at that characterization. They claim to be in favor of business, but only want to look out for “the little guy.”
However, Peter Schiff decided to go undercover and see what he could find out. He pretended to be a liberal at the Democratic National Convention and asked if these delegates would support a law banning corporate profits.
Now, I’ll be the first to concede that quite a few were apparently only interested in a cap on corporate profits, but there were still plenty who were in favor of outright banning them. Banning corporate profits? What could go wrong?
Well, first let’s address the fact of what a corporation really is. Corporations aren’t just megalithic entities like Wal-Mart, Apple, Microsoft, McDonald’s, and the like. Corporations are also small businesses like Knighton Media, Inc. That’s my business. It employs just me, a sales guy, and a part time office manager. There are thousands of corporations that are closer to my company than Microsoft or Apple.
A corporation is basically a type of structure permitted by law that lets one sell stock in the company. Of course, there are multiple types of corporations out there, so I’m being rather simplistic (the types of corporations could fill a blog post all on its own…a few in fact), but you get the point.
The fact that some of these people want to outright ban me making profits shows how little some of these people know about why people get involved in business. Oh, those who want caps will point out that my small company is unlikely to make huge profits, and they’re right. However, the opportunity for those profits do exist. Besides that, talking about a level is a cap. Instead, some of these people are supportive of an outright ban on making profits.
I hate to break it to these people, but I didn’t start Knighton Media because I wanted to create jobs. I didn’t create a corporation so I could pay taxes either. I started it to make money. Does it sound crass? Maybe, but I really don’t care. I created it because I wanted to make money, and I’ll be damned if I’m going to feel guilty either.
By eliminating my ability to make profits, you thereby remove my prime motivation for starting a company. I hate to break it to them, but my motivations aren’t that different from other business owners. We can work for someone else and not have to deal with all the crap that goes along with being a business owner if it were just about the work. Generally, it’s not.
But hey, what doe Dems know? Most of them don’t believe that the broken window fallacy is really a fallacy either.