Wall Street Stiffs Main Street Investors/Tax Payers

James 4:3 (King James Version)
3Ye ask, and receive not, because ye ask amiss, that ye may consume it upon your lusts.

The business of government is business. There is a misconception, propagated by many, that government has no business in the private sector. Clearly, our economic system could not survive without the active involvement of our government. Government assists the private sector in many ways: investment in infrastructure, protection of private property, mitigation of contract disputes, and regulation of financial reporting to encourage private investment just to name a few. Government has been, and will continue to be, a partner of the private sector.

Today, we are facing uncertain times of economic peril. Government has lent Wall Street over $700 billion and considering an additional $1 trillion in the hopes of jump starting the economy. However, reports have surfaced that Wall Street continues to over compensate top executives while 277,000 jobs have been lost in the month of January alone. In 2008, $2.6 million Americans lost their jobs while Wall Street paid out over $20B in executive bonuses--the sixth largest bonus distribution in history. Economist expect the current recession to be the worst since the 1930s; however, Wall Street continues to pay large compensation packages while at the same time begging for tax payer assistance. James 4:3 tells us that ye will not receive what you ask for because the spirit in which you ask is for selfish reasons of lust. It seems as if Wall Street has asked for help from YOU, the tax payer, for selfish reasons.

Attention All Tax Payers—your tax dollars underwrite the cost of doing business. Businesses rarely realize the true cost of doing business, rather they externalized many cost by relying on your tax dollars for support. When business fails to provide a “living wage” and adequate benefits, the tax payers help support health care and other supports. When business operations damage the natural environment, your tax dollars help protect nonrenewable resources. When you consider investing in a company though your pension, 401K, IRA, 403B and individual securities, your tax dollars regulate financial reporting that allow you to invest in the market with confidence. Tax payers have been good partners to business. Can we say the same about Wall Street?

It is arrogant to ask for YOUR money, but continue to shell out excessive compensation to executives. While the tax payer is struggling to hold on to their jobs, Wall Street continues business as usual. Without the tax payer, there would be no business…tax payers are a business greatest asset--human capital. Tax payers are also consumers of goods and services provided by business. However, tax payers are not considered as partners to business. I wonder why?
Tax payers have invest trillions each year to help support the private sector.

Consider the following:

• Corporate Citizenship Tax: If business wants to move operations over seas, consider “recouping” what was invested from tax payers. Whether this be reimbursement of tax credits to billing companies for infrastructure investment that associated with the development, planning, and implementation of business operations.

• Executive Compensation Reform: If a company experiences large layoffs, executives should forgo corporate compensation due to poor performance. In addition, executive pay should be equally reduced by the percentage of staff that is laid off.

Government establishes monetary and fiscal policy. Monetary polices control the amount of money in circulation while fiscal polices address the collecting and spending of money by the Government. If there is too much money in circulation, we could experience inflation. Inflation adversely affects the purchasing power of tax payers and reduces the currency value of US dollars held by businesses. Strong economic systems benefit from proactive monetary policies that prevent large fluctuations of currency values.

In addition, strong fiscal policy refers to the spending and taxing activities of a given country. If a country does not prudently apply taxing powers and/or incurs huge deficits, this could discourage the investments of foreign domestics—those companies that are headquarter in foreign countries but have significant operations and employ workers in the US. Countries that incur large deficits might send a message potential investors that a country could be insolvent and less apt to invest in infrastructure or business development.

Government has allowed for individuals to collectively negotiate standards for healthy work environments and equal pay.

Without the government intervention, the average consumer would have limited choices to purchase goods and services due to the development of monopolies.

Therefore, neither the government or its tax payers should be considered enimies of business. Without the success of American business, the Government's ability provide for the public good would severely limited due to the decline of tax revenue from consumers, workers, property owners, and businesses.