The Survival of Our Free Enterprise System
Our Free Enterprise System is not a constitutional right, but like constitutional rights, it’s existence can be threatened.
One threat today is from outside—particularly China—through theft of intellectual property and cyber-espionage. There may be “private” businesses in China, but they exist under a one-party dictatorship which does what it wants and can pressure businesses to do what it wants. America is most at risk here where Chinese businesses acquire American companies.
The other threat is from within, primarily from large companies seeking to consolidate the competition, either because they desire to or they feel they have to in order to survive. This can be done via Vertical Consolidation where they acquire businesses in the same industry. It can be also be done via Horizontal Consolidation where businesses in various industries are acquired to form a conglomerate.
A more subtle threat are stock buy-backs where companies acquire their own stock to either boost share price or impress potential investors, resulting in increased compensation for top executives.
My purpose with this site is to point out these “tools of manipulation” which do not always make the headlines.
My purpose is also to provide ideas to create a renaissance or rebirth of our free enterprise environment.
This can be done through true tax reform, which would focus on adjusting tax rates instead of providing just tax cuts. It would also involve providing tax incentives to encourage businesses to invest in
- Wages and Benefits
- Research and Development
- Plant and Equipment
and establishing taxes to discourage tactics such as stock buy-backs, hostile takeovers, huge CEO severance rewarded for bad performance, and acquisitions that lead to industry consolidation. This is not about being “anti big business” as many liberals are, but that they become large in ways that are healthy for our overall economy.
For right now I will be referencing articles I read on this subject that lend credibility to my positions. I may, from time to time, create my own 100% editorial – in my own write – and comment on other subjects.
Thank you for visiting
Robert J. Wilking