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Gerry Nicholls

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Entrepreneurs Must Stop Apologizing

Posted: 09/09/11 02:36 PM ET

In Ayn Rand's famous philosophic novel, Atlas Shrugged, leading entrepreneurs and businessmen go "on strike" as a way of protesting socialism.

Eventually this strike causes the economy to collapse which in turns causes politicians to finally understand the true value of those who actually create wealth and prosperity.

It's a good story, but alas it's only fiction.

In real life, the majority of politicians, and for that matter most of the general public, have virtually no understanding as to how capitalists and entrepreneurs, when allowed to operate in a free market, benefit society.

In fact, if anything an anti-entrepreneur bias permeates our culture. Or least it permeates our popular culture. Just consider, for instance, how in movies and TV shows, successful business people are inevitably portrayed as "greedy" or "corrupt" or "heartless."

Indeed, these days the prejudice against the free market and those who make it work, has reached a near hysteric level, as pundits, politicians and others seek to pin blame for the current economic slowdown on what they like to call "corporate greed."

What these critics don't understand, of course, is that the same free market system they like to rail against is also the same system which has made our society the most prosperous in history.

And besides being the most efficient way to create wealth, the free market system also happens to be morally superior to its main economic alternative -- socialism.

Free markets are based on choice; socialism on compulsion.

So why don't people get that?

Well to fully answer that question would probably take a book or two.

But here's one key reason: the people who the make the free market system work -- i.e. entrepreneurs -- are often like the rest of the population; they don't understand the values which underpin capitalism.

Consequently, they all too often fail to defend themselves in the market place of ideas.

They cede the moral high ground to leftists, to politicians and to assorted other anti-free market types. Rather than standing up for free markets, business people often become defensive, sometimes even apologizing for being capitalists.

This is a problem because if business people don't stand up for capitalism, who will?

This is why an organization in the United States called the Bastiat Society exists. Named after the famed French economic theorist Frédéric Bastiat, the society's purpose is to "educate other wealth creators on their right to the moral high ground."

The motto of the group is "Those who work in freedom should know how freedom works."

Canada should sure could use a group like the Bastiat Society. Entrepreneurs in this country need to be convinced that they are the good guys.

But of course, having principled arguments is not enough.

It's also necessary for business people to know how to get their message across to the media.

Unfortunately, for many entrepreneurs and business people, the media is nothing but a massive mystery. Indeed, if they think about the media at all, it's how to avoid it.

This is a mistake.

Business people should be using the media to get their message out; just as the left uses it so effectively to get out their message.

Only in this way will supporters of free markets win the war of ideas. Only in this way will they change public attitudes about the value of the free enterprise system.

In other words, rather than watching the current economic debates from the sidelines, entrepreneurs must be active participants.

The bottom line is entrepreneurs are truly the heroes of our free market system.

It's time they started acting like it.

 
In Ayn Rand's famous philosophic novel, Atlas Shrugged, leading entrepreneurs and businessmen go "on strike" as a way of protesting socialism. Eventually this strike causes the economy to collapse wh...
In Ayn Rand's famous philosophic novel, Atlas Shrugged, leading entrepreneurs and businessmen go "on strike" as a way of protesting socialism. Eventually this strike causes the economy to collapse wh...
 
 
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10:21 AM on 09/13/2011
You confuse many things. There is a difference between creating wealth and merely making money and entrpreneurs do neither, In fact they tend to lose a lot of money and create no wealth as they try to get their ideas or their businesses to fly. Once the business does get going then the guy is no longer an entrpreneur, he's a businessman. Many entrepreneurs actually become impediments to their own sucessful businesses because they have no professional management ability and if they don't hire a team then their business will fail. You may think this is a distinction without a difference, but it is not. Also, the idea that markets are free is truly quaint. That capitalism can stand on its own without socialism to prop it up is to ignore history. Many mature industries today (aerospace, transportation, nuclear, pharamaceuticals, IT) all had their kernels in government. Capitalism today is so broken and corrupt that only through heavy regulation and behavior modifying taxation can it hope to survive. BTW, those two things (regulation and taxation) are today what the early economists referred to as the unseen hand of the marketplace.
08:20 AM on 09/13/2011
Free markets can exist if the playing field is level and the rules are fair. However, none of these conditions exist as people, corporations and countries all lie, steal and cheat.
whitepeacock
"By their fruits you shall know them."
10:49 PM on 09/12/2011
Ick. I wasn't aware successful entrepreneurs needed so much of my sympathy.
NoBlueDogs
FIGHT Offshoring!!!
10:39 PM on 09/12/2011
First mistake. If John Galt and his pals did actually go on strike and flee to an island, they would starve. The rest of the world would respond by not giving them any food, and who among John Galt's pals would do any farming? Moreover Rand's story says these societies were collapsing - there wouldn't be food to send to them.
Second mistake. John Galt is interchangeable, as are all entrepreneurs. If you can come up with an invention or an idea, no matter how closely you guard it, someone else can do so in due time. Knowledge does not favor revealing itself to any one person. If John Galt flees, others can take his place. Most likely others who want to eat.
Third mistake. Entrepreneurs mean nothing without someone to buy their goods. Consumers build wealth just as much as entrepreneurs.
Fourth mistake. Laissez-faire capitalism is as unrealistic an idea as pure Communism. It depends on perfect informed consent and perfectly rational choices. This is why there has never been a truly laissez-faire capitalist society. (And Hong Kong does NOT qualify.) Such a system will be quickly brought down by human corruption.

However there is hope for people like Gerry Nichols. Its called the Seasteading Institute. This organization is taking donations for the construction of an artificial island that practices true laissez-faire capitalism. Mr. Nichols, have you donated? http://seasteading.org
10:20 PM on 09/12/2011
What a bunch of gobbly gook. most liberals, in America at least, don't have a problem with entrepreneurs, in fact most of us know that most new jobs are being created by small and mid-size companies. More libertarian hot air, anyone who criticizes the conservative free-market economy is a socialist, what nonsense.
09:00 PM on 09/12/2011
We the people of the United States understand that we must have laws and enforcement of those laws otherwise we would face corruption and anarchy. We the people of the United States have inherent rights that are to not be infringed. We the people of the United States does not include artificial entities such as corporations. Corporations emerge as a result of our laws. Corporations do not have any constitutionally protected rights and being a creation of law need to be rigorously regulated to see to it that they do not abuse those laws that they are subject to.

If entrepreneurs want a truly free market without regulation try Somalia.
10:23 PM on 09/12/2011
And Corporations are not people, People are people. If you cut a Corporation does it bleed?
03:21 PM on 09/12/2011
I can't believe I'm wasting my time responding to this drivel. This ode to the downtrodden corporate capitalist system is utter nonsense. To lump together the real entrepreneurs who start small and microbusinesses and hire U.S. workers with multinational corporations whose only job is to externalize costs (free use of public roads, air, court system) and internalize profits (outsourcing jobs, offshore tax havens, etc.) is the height of arrogance by this author. The global corporatists don't have to defend themselves in public opinion as long as they can buy their freedom through elected officials.
10:24 PM on 09/12/2011
Yes, I expect better from Huff P. I guess this counts as balanced reporting.
01:59 PM on 09/12/2011
Oh yes, our society clearly hates entrepreneurs. It hates them so much that no politician would be caught dead proposing cuts to regulations, cuts to business taxes, policies to help small business owners, or subsidies for any industry. Our society would never approve anything like TARP to keep bankers who just got a little over-leveraged from going out of business. And lastly, businesses are hated so much the Supreme Court refuses to recognize their contributions to political campaigns as speech! Can you imagine?

And yes, let us not speak of that horrible immoral menace known as socialism, whose central tenet is that workers should own the means of production. Imagine if the workers owned the results of their own labor! Where would hapless capitalists be then?
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Majestry
Every man is the artisan of his own fortune
01:25 PM on 09/12/2011
I love how you equate "being successful" with being an entrepreneur when the two aren't even remotely similar. An entrepreneur CAN be successful, but business success does not mean one is being entrepreneurial or even doing something good. It is quite easy to be successful and do evil at the same time.
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laura r
12:52 PM on 09/12/2011
It became the most prosperous in history when we had regulations on the private enterprise system.
An when we had the Bretton Wood agreement 1945-1975; Not the World Trade Oraganization.

The prosperous middle class grew from 1945-1970, which was the 70% consumer power that was the engine of growth. We were not a debtor nation to China then.

Now China is the engine of growth, but not for this country, only the Multinationals that are making money in other countries and keep that money in off-shore bank accounts.

Thomas L. Friedman’s new book: Great read.

“That Used To Be US : What Went Wrong with America And How It Can Come Back”

Quotes from the book.

America has a huge problem. It faces four major challenges, on which its future depends, and it is failing to meet them. Globalization, the revolution in information technology, the nation’s chronic deficits, and its pattern of energy consumption—and spell out what we need to do now to rediscover America and rise to this moment.

They explain how the end of the cold war blinded the nation to the need to address these issues. They show how our history, when properly understood, provides the key to addressing them, and explain how the paralysis of our political system and the erosion of key American values have made it impossible for us to carry out the policies the country needs.
10:29 PM on 09/12/2011
Not a big fan of Tom Friedman, too much of a freetrade cheerleader and "chicken hawk", but will give it a read.
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laura r
10:55 PM on 09/12/2011
I am not really a fan of his either, but I saw him on Meet the Press. He is saying things like, the ruling elites were naive after the fall of the Iron curtain. He also said that we were fighting wars in the mid-East with the Globalization loser, when we should have been watching what the winner were doing. So, I am thinking he now understands some of the drawbacks to globalization.
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humanbeing-rick
Born in the USA 1947
12:45 PM on 09/12/2011
"the same free market system they like to rail against is also the same system which has made our society the most prosperous in history" - Gerry Nicholls
Baloney! The contrived "free market" system setup by the neo-cons is a new from of capitalism that is far too extreme for a healthy society. We need to return to a fair and balanced market, such as America had during our best times.
Extremism of any form is bad for us, including extreme capitalism.
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pab08
Partisan agendas can't compete with objective fact
12:27 PM on 09/12/2011
No one is asking anyone to apologize - so stop with the martyr act and the silly hyperbole.
What I am asking is that since we have been borrowing money for the last ten years to fight 2 wars and bail out banks for their bad decisions, that the companies that profited from this federal spending now actually pay taxes on their incomes.
GE has made 100s of millions of dollars in defense sales over the last decade - 2010 taxes paid: $0
Bank of America bailed out by the taxpayers and mad record profit in 2010 - but paid $0 in taxes.

This is not "blame the rich." This is telling you to carry your share of the burden. Shut up and Get over it.
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laura r
12:17 PM on 09/12/2011
This is the reason our country is in trouble today. If you are for fair trade, this cult of Ayn Rand worshipers insist you are a” socialist and totally against Capitalism. It's so easy to see things in black and white that way one does not have to analysis the complexities in life. How shallow!!!! Most people are for global trade, but know their has to be better rules of the game; but the Ayn Rand cult is for deregulated markets at all costs. The banking crash of 2008 was not enough to prove to them that their needed to be regulations. They refuse to understand that run about Greed destroys everything in is path.

Below is a quote from Adam Smith “ The Wealth of the Nations”.

As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce.
Adam Smith
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clearasmud
Obama Is Nothing More Than A Moderate Republican
10:21 AM on 09/12/2011
My message to this author...

If you are correct why are there NO Banksters in jail for the Fraud that destroyed our economy. The Fraud is plainly there for all to see, so why do Banksters get away with breaking the Law? In a "Free" Capitalist Market, there should not be a Get-Out-Of-Jail Free Card for the elites. The only reason the Bankster Elites are not in jail is because they own our government.
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tacevad
American SS Card Carrying Socialist
10:16 AM on 09/12/2011
the Free Market System if enabled to rein totally free has already shown that profits outweigh morals everytime. the mixture of Socialism and Free Markets is what we have in America simply because Socialism acts as a check on the unfettered power and yes greed that prevails otherwise.
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Scott Leland
10:28 AM on 09/12/2011
Our country's economic problems are caused by the multinational corporations taking the record profits they are making by firing their employees in the U.S. and investing in new equipment anf facilities in...Mexico.

We need to let the corporations know that we will appreciate them hiring Americans to get the Recovery going:

http://www.flixya.com/blog/3201910/Beautiful-Butterflys
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laura r
02:22 PM on 09/12/2011
Yes, The unfettered markets has failed twice in this country.

The Great Depression
The Great Recession..
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Scott Leland
10:11 AM on 09/14/2011
Yes, you are right. The Security Exchange Comission was formed to regulate the stock marketys after 1929. Now Wall Street is complaining about the Dodd-Frank financial reform law.