Week of the Golden Goose Fairy Tale (part 3)

Posted on December 14, 2011

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This week we are considering the Grimm Brothers’ Fairy Tale, The Goose That Laid the Golden Eggs. This Fairy Tale describes what happens when an impatient farmer wants more Golden Eggs more rapidly and consequently splits open his Goose to find them. Of course, none are to be found. So, after eating the Goose, he is left, as expected, with nothing to chew on but his pride and imprudence. (from Eating the rich)

Our nation’s penurious tax policy with its progressive income tax punishes the rich at the very outset. If they invest in our businesses, their “capital gains” are taxed. If they are silly enough to invest in their own businesses or to stride upon the foolhardy path of starting a new business, they are penalized with corporate taxes and more, along with overzealous regulations and regulators (can you say, “NLRB?”).

Isn’t it as easy as pie, then, to see that any rich person not entirely insane would choose to place his or her money in “safe” investments such as Treasury Bills (which produce zero economic gain)? Consider, the rich will earn safe interest on the money they invest in U.S. T-Bills, with no more effort than putting on their sunscreen on the beaches of Grand Cayman. And why shouldn’t they drop their money into T-Bills and focus on sunning themselves? In present-day America how can we expect them to do otherwise? They are not stupid – they know too well that if they exert themselves to invest (unsafely) in wealth-creating American business, they RISK EVERYTHING AND they will have to work hard. Only an idiot would do such a thing and the rich are not idiots.

Because we live in ObamaWorld, investments in American business and American dreams evaporate or are never made in the first place. The aspirations of the American proletariat, of the alleged beneficiaries of Obama’s largesse, go begging, remaining unfulfilled, withering on the vine, morphing into fantasies of what might have been if only its leaders had a clue.

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