Arbitrary Government Rules Slow Investment and Growth

Personal Freedom and Prosperity 110: A Predictable and Stable Legal order

A government with moral and legal authority promulgates written rules and universally, impartially and uniformly enforces those rules, which provides a predictable and stable legal order on which to base economic and personal decisions.  The law prevails, not the proclamation or arbitrary decision of a ruler, government bureaucrat, the enforcer (e.g., policeman) or judge.  

Arbitrary Government Rules Slow Invest and Growth

Government uncertainty stops investment and economic growth.  In order for freedom and prosperity to thrive, the primary duty of government is to provide a predictable and stable legal order on which to base economic and personal decisions.  A recent Wall Street Journal headline states the harm caused by capricious and arbitrary governance:

Investment Falls Off a Cliff – U.S. Companies Cut Spending Plans Amid Fiscal and Economic Uncertainty  

Our federal  government is tragically failing.  Worse than failing, it has intentionally created disorder and harm.  The fiscal cliff is its latest incompetence.  Obama, Pelosi, Reid, Boehner, McConnell and their minions intentionally legislated tax hikes on nearly every American and created indiscriminate cuts to military and domestic programs.  If this is not legislatively rescinded, these tax increases and spending cuts will become effective on January 2, 2013.

Our fiscal cliff crisis is a continuation of the fiscal irresponsibility by America’s elected leaders – Democrat and Republican.  Now, American business leaders have lost confidence in our politicians and political process.  America’s largest businesses are no longer investing and expanding.  As reported by the Wall Street Journal:

Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined. 

Directly, this is the result of a lack of predictability and stability in our legal order.  As stated by an entrepreneur investing and creating products for consumers around the world:

“The whole world is looking for stability and clarity from the United States,” said David Seaton, chief executive of Fluor Corp., a large engineering and construction firm. “If uncertainty isn’t removed,” he said, “people will sit on their war chests of cash and return it to shareholders. You’ll have a retarded growth trajectory.”

The politics creating the fiscal cliff are immoral and could easily cause another recession. Most likely, Obama, Pelosi, Reid, Boehner, McConnell and their minions will patch together a compromise and promise to work on tax and spending reforms. Maybe these steps will momentarily prevent a recession.  However, this does not and will not address the gigantic flaw in our democracy and governance.

How do we assure every American has a predictable and stable legal order on which to base economic and personal decisions?

Alas, our most-recent election has concluded, and Obama, Pelosi, Reid, Boehner, McConnell and their minions are gaming the political system for their party and personal advantage.  Politicians are already campaigning for the next election.  Their lust for political power always prevails over stable, predictable and prudent laws. Every political decision focuses on the next election, which creates “fiscal cliffs;” a terrible economy, unemployment and despair.

Sadly, it is all about power for our politicians.  America and Western civilizations must discuss and solve the question:  How do we force politicians to enact a predictable and stable legal order on which to base economic and personal decisions? 

Most politicians avoid an honest debate, so We the People must debate and find solutions ourselves.  Time is of the essence and it’s up to us.