Dis-Incentivizing Entrepreneurship Cannot Improve The Economy.

The full potential of the market process can only be achieved by true and active entrepreneurship.

Corporate decision-makers – managers – act as true entrepreneurs only to the extent that the entrepreneurial opportunities detected translate into personal benefit. Without this type of arrangement the full potential of the market process is wasted, untapped because the entrepreneurial potential is limited.

How could it not be limited? It is the incentivized entrepreneur who will seek to know who to hire and it is the incentivized entrepreneur who will seek to know where to find the market information that reveals profit opportunities. Also, it is the entrepreneur who will leave if the firm undervalues his or her services.

If the management is entrepreneurial it experiences the same forces of competitive entrepreneurship as everyone else, which necessarily leads to accountability. When a corporation moves away from this ideal then a different structure appears. If the stockholders lack the effective power to fire management the corporation takes on a degree of monopoly structure due to the incumbency of the manager. The management lacks accountability and is sheltering itself from the competitive entrepreneurship inherent in the divine economy.

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Viability In Human Societies Originates From Entrepreneurship.

Firms emerge. Owners of productive resources sell their services to the firm, to be used to satisfy the ‘cries’ of the consumer. It is those who are entrepreneurial, hearing the cries and seeing the opportunities and bearing the uncertainty, who originate the firm and who keep it viable.

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Negating Social Cooperation Leads To Injustices.

Here’s what I have discovered to be a good understanding of justice: justice is that which promotes social cooperation.

Maybe the converse will make it clearer: That which negates or interferes with social cooperation necessarily yields injustice.

All voluntary actions between people are examples of social cooperation and the result is an improvement of circumstances, in other words, wealth (material and or ideal) is generated.

It is necessary to understand that voluntary action has to be the absolute condition, in other words, the action cannot involve taking the property of someone else (since that would not fit the definition of voluntary) who is removed from the scene.

And so here and there and everywhere we have the State which is 1). Negating and interfering with social cooperation, and 2). Taking the property of someone else (since it has no property other than what it has taken from someone else) which makes it clear and evident that here and there and everywhere injustice appears as a consequence. If there was a regression theorem of justice all or most (in this era of statism) of the injustices that are afflicting humanity could be traced back to the negation of social cooperation conducted by the State.

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Subsidiarity Is The Missing Puzzle Piece.

Everyone is looking around to find a solution to the political problems everywhere around the world and yet the missing puzzle piece is found in the philosophy of classical liberalism. That missing puzzle piece is subsidiarity: the principle of devolving decisions to the lowest practical level.

Sure, federalism is a natural part of social cooperation but what must be taken into account at all times are the consequences of increased State power. Federalism without constraints centralizes State power and that tendency towards centralization is because monopoly power over laws is eliminative, always favoring moving towards more monopoly power and more centralization. The counterbalance to the inherent weaknesses of federalism is subsidiarity.

This necessity of subsidiarity simply makes sense since civilization is for the good of humans, not for the embellishment of an institutional structure that is constantly trying to extract wealth and power from the people.

Those who are anarcho-capitalists would say that the lowest practical level for decision-making is the individual. But that does not mean that individuals cannot socially cooperate and consult and as a result design voluntary means to reach the ends chosen. In other words, all of the functions that are a part of society are present and working smoothly even under what can be described as anarchy, in this case anarcho-capitalism.

Of course the proponents of statism want only to emphasize federalism; and what has happened is almost a complete disappearance of subsidiarity from common vocabulary. How many people ever learn about it in the State-controlled ‘education’ system or from the State-controlled media? Lost also is the philosophy of classical liberalism despite the fact that it was the foundation for the magnificent Western Civilization.

Disappearance of the meaning of subsidiarity or of the principles of classical liberalism is not some accident. Both of these are antithetical to the State and so the intent is to remove these and other aspects of liberalism from the minds of young and old alike.

Puzzled? Subsidiarity is a key component of a civilization built upon the principles of classical liberalism. It’s time to solve the puzzle!!!

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