A government with moral and legal authority promulgates written rules and universally, impartially and uniformly enforces the 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.
Fareed Zakaria reports in the Washington Post that the 500 largest non-financial corporations in America have $1.8 trillion in cash reserves which are not being invested in business expansion.
Most CEOs are not investing because of a plethora of additional and onerous new rules and taxes. In other words, America lacks stable and consistent rules which businesses and individuals can plan their investment strategies. Hence, CEOs are hoarding their cash rather than investing. Zakaria describes the CEOs’ fears.
One CEO told me, “Almost every agency we deal with has announced some expansion of its authority, which naturally makes me concerned about what’s in store for us for the future.” Another pointed out that between the health-care bill, financial reform and possibly cap-and-trade, his company had lawyers working day and night to figure out the implications of all these new regulations.
These are very dangerous times. Most of America’s financial problems were instigated by a hodgepodge of government laws and rules driven by special interests and political hubris. Now is the time for the political elites to forego their personal power plays. Now is the time to assure a legal order on which Americans can predictably base economic and personal decisions.
Alas, the political animal craves power, and has no interest in establishing a predictable and stable legal order. In a democracy, only a politician’s constituents can force the political elites to enact good policy.
Join FreedomWorks and force the establishment of good governance. Freedom requires a stable set of laws, and $1.8 trillion needs to be invested in business expansion. Now!