By Everson W. Hull
The seemingly fashionable “punish the rich” policy action that is being served up by our leaders is fatally flawed. Doling out freebies to able-bodied minorities snuffs out the benefits to be derived from vigorous competition, vibrant productivity and, in turn, prosperity.
At the root of the difficulty is the missing competition that is necessary for motivating each employee to be the best that he or she can be, in promoting a cadre of winners who will share their expertise with those who are second best.
Far too often is the absence of a compensation system, that embodies an incentive-driven structure, that recognizes and rewards the best and brightest for their outstanding achievements. The antiquated compensation structure that doles out the identical communist-inspired dollar payout, offers little or no motivation for employees to outperform their peers by increasing levels of productivity that would enhance the value of products that are brought to the global marketplace.
In every sphere of human endeavor, those who have been engaged in vigorous competition have outperformed their peers with the full understanding that they will receive a level of compensation that is commensurate with their outstanding performance.
It matters not the discipline. To illustrate, although Peter and Paul did not inherit their wealth; they did not become rich by waiting for freebies to be disposed on them by our leaders. This is not a group to be punished with exorbitant taxes. Indeed, we need more of these winners, not less.
The bonafide winners all travelled the same competitive / productivity road. They did not wait around for freebies to be bestowed on them. At an early age, they engaged in the grunt work which involves vigorous training and competition, outperforming their peers to become the best and brightest they could become, in their respective disciplines. In each case, the winners produced products for a global marketplace where there is an excess demand for treasured highly valued products and services.
For over 60 years, we tried the preferred freebies approach, that is far too often adopted by our leaders; with no regard for vigorous competition and productivity which are among the fundamentals of economic growth and prosperity. What we have not tried is the intense training and competition that yields the levels of productivity that generate the enhanced high-priced products that Elon Musk, and others, are producing and offering for sale in the global marketplace. A variant of their approach has just been announced – two winners, Elon Musk and Vivek Ramaswamy will be leading the effort of enhanced governmental efficiency – a by-product of competition and productivity.
The few highly compensated winners among minority cohorts invariably exercise their “freedom to choose” how they will spend their surplus income. No one of sound mind hides their money in a mattress. In many instances, we would learn of a winner who purchased a home for an elderly mom and dad who raised them from birth.
This is an enduring family structure to be encouraged and sustained, not destroyed by our leaders who are obsessed with their “punish the rich” high taxes solution. These winners, who often came from poverty, place an enormous value of giving of themselves to others. They know where they came from. Whenever our leaders declare a war on minority winners by imposing stiff taxes, they are effectively declaring war on the winners and sustaining a long line of family dependents.
These winners are our best and brightest who are willing and able to pursue training in the complex items that are in great demand; and who are willing to develop a level of competence in financial literacy. This is the cohort group that is best suited for leading this effort. They are not to be ignored. Their achievements are to be celebrated.
We, “the people”, have revealed our preferences for the goods and services that the winners have brought to the marketplace of highly valued products. Our second-best in class and experts in their several areas of expertise, welcome and embrace each call that the well-endowed minority winners make for repairing an electronic household device, repairing a defective automotive transmission, or repairing a defective tooth.
It is the success and rewards of the second-best among us that generate the earned income that allows them to purchase higher levels of education and develop new technology skills that open doors and new opportunities that catapult them to the class of winners. The very damaging effects of the hostile assault on the rich with higher taxes, trickle down and has its own very damaging high-tax effect on those who are aspiring to reach the class of winners.
There is a great deal to be gleaned from the SEC DEF-14A annual filings of companies which trade their financial instruments on Wall Street Exchanges. Each company outlines in gory detail a description of its goals and objectives; as well as the distribution of earned compensation that is linked to performance.
If our minority cohorts are to reach their highest productive potential, every effort should be re-directed to recognize our top talent; and the significance of the training that is best accomplished and led by our best and brightest. This is the group that is best suited for understanding the complexities of the required training.
The historical record shows that over a more than 60-year interval, doling out freebies to the masses will not yield significant progress in narrowing the per capita income gap that stands in the way of achieving our full productive potential. Addressing the needs of the poverty-stricken is necessary. But, it is not sufficient.
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