Tag Archives: Enterprise

Arthur Brooks and the value of earned successs

In the Wall Street Journal.

Excerpt:

Earned success means defining your future as you see fit and achieving that success on the basis of merit and hard work. It allows you to measure your life’s “profit” however you want, be it in money, making beautiful music, or helping people learn English. Earned success is at the root of American exceptionalism.

The link between earned success and life satisfaction is well established by researchers. The University of Chicago’s General Social Survey, for example, reveals that people who say they feel “very successful” or “completely successful” in their work lives are twice as likely to say they are very happy than people who feel “somewhat successful.” It doesn’t matter if they earn more or less income; the differences persist.

The opposite of earned success is “learned helplessness,” a term coined by Martin Seligman, the eminent psychologist at the University of Pennsylvania. It refers to what happens if rewards and punishments are not tied to merit: People simply give up and stop trying to succeed.

During experiments, Mr. Seligman observed that when people realized they were powerless to influence their circumstances, they would become depressed and had difficulty performing even ordinary tasks. In an interview in the New York Times, Mr. Seligman said: “We found that even when good things occurred that weren’t earned, like nickels coming out of slot machines, it did not increase people’s well-being. It produced helplessness. People gave up and became passive.”

Learned helplessness was what my wife and I observed then, and still do today, in social-democratic Spain. The recession, rigid labor markets, and excessive welfare spending have pushed unemployment to 24.4%, with youth joblessness over 50%. Nearly half of adults under 35 live with their parents. Unable to earn their success, Spaniards fight to keep unearned government benefits.

Meanwhile, their collective happiness—already relatively low—has withered. According to the nonprofit World Values Survey, 20% of Spaniards said they were “very happy” about their lives in 1981. This fell to 14% by 2007, even before the economic downturn.

That trajectory should be a cautionary tale to Americans who are watching the U.S. government careen toward a system that is every bit as socially democratic as Spain’s.

Government spending as a percentage of GDP in America is about 36%—roughly the same as in Spain. The Congressional Budget Office tells us it will reach 50% by 2038. The Tax Foundation reports that almost 70% of Americans take more out of the tax system than they pay into it. Meanwhile, politicians foment social division on the basis of income inequality, instead of attempting to improve mobility and opportunity through education reform, pro-growth policies, and an entrepreneur-friendly economy.

These trends do not mean we are doomed to repeat Spain’s unhappy fate. But our system of earned success will not defend itself.

What I find most interesting is that the people who vote for Obama don’t even realize how they are making themselves more and more unhappy by being more and more dependent on government. It’s the bluest states that have seen the lowest income growth, the lowest job growth, lower home prices, and the highest unemployment. All of this talk about taxing the rich and spreading the wealth around through bigger and more intrusive government hasn’t worked. More government means less prosperity, and less prosperity means fewer jobs, and fewer jobs means less happiness. Punishing your successful neighbor and borrowing huge amounts of money from the next generation does not create jobs. And without a job, you’re not going to be happy. Even liberal CNN recognizes that more government intervention during Obama’s first term has caused huge numbers of people to become unemployed.

We need to have a public policy that recognizes that human beings are spiritual creatures, and we aren’t happy unless we chart our own course.

Meet a small business owner – the enemy of Democrats

Here’s an interesting video. (H/T Ari)

See that guy? He’s your potential boss. Stop messing with this business and maybe he’ll hire you.

Who knows more about economics? Obama or people who run businesses?

Consider this article from The American Spectator, which talks about the Obammunist response to companies losing massive amounts of money because of Obamacare. (H/T ECM)

Excerpt:

By last Friday, AT&T, Caterpillar, Deere & Co., and AK Steel Holding Corp. had all announced that they were taking the one-time charges on their first-quarter balance sheets. More companies were expected to make similar announcements this week.

[…]On Friday White House chief of staff Rahm Emanuel and Obama senior advisor Valerie Jarrett were calling the CEOs and Washington office heads of the companies that took the financial hits and attacked them for doing so. One Washington office head said that the White House calls were accusatory and “downright rude.”

[…]”Most of these people [in the Administration] have never had a real job in their lives. They don’t understand a thing about business, and that includes the President,” says a senior lobbyist for one of the companies that announced the charge. “My CEO sat with the President over lunch with two other CEOs, and each of them tried to explain to the President what this bill would do to our companies and the economy in general. First the President didn’t understand what they were talking about. Then he basically told my boss he was lying. Frankly my boss was embarrassed for him; he clearly had not been briefed and didn’t know what was in the bill.”

[…]”We had memos on these issues, but none of our people, we think, looked at them,” says  a staffer. “When they saw the stories last week about the charges some of the companies were taking, they were genuinely surprised and assumed that the companies were just doing this to embarrass them.  They really believed this bill would immediately lower costs. They just didn’t understand what they were voting on.”

And more from National Review, where the CEO of Aetna was interviewed. (H/T Ace of Spades via ECM)

Excerpt:

Will insurance premiums go up?

The answer is yes, and some of the things that will drive those premiums are significant additional taxes the industry will ultimately have to pay in the first year.

The President said that this bill would not have any impact on people who already had coverage, that it was about the uninsured, that there would be no change. Will this legislation change the coverage of people who are already paying for it?

My perception is, yes, things will change. You might not have a plan that includes the exact same doctors. You might have plans that have richer benefits, and therefore you’re going to pay more for benefits you may or may not want. It would have been a better message to say, we’re going to make certain you maintain your eligibility.

The “Robin Hood” intention of giving to the unproductive by taking from the productive seldom pays off, since the productive are the ones who give people jobs. And a lot of people are going to lose their jobs because of Obama’s economic ignorance. Either that, or companies will raise their insurance premiums, so that the poor will have to pay more for health care. Obama doesn’t know what he is doing, he probably thinks that communism has made Cuba rich. He’s just trying to help poor America reach the opulence of communist North Korea.