Do you ever wonder after dealing with all that is going on with the economy and the upcoming election if it’s getting to be time to “go John Galt”? For those of you who have never read Ayn Rand’s Atlas Shrugged, the basic theme is that John Galt and his allies take actions that include withdrawing their talents, “stopping the motor of the world,” and leading the “strikers” (those who refuse to be exploited) against the “looters” (the exploiters, backed by the government).I don't think that there's any need for a "John Galt" to lead the productive to "strike". Individuals will review their situations and make decisions to cut back or stop working altogether depending on Obama's new tax and regulatory regimes and their own personal preferences and needs. The result may look like a John Galt organized them, but it will instead be a great example of Adam Smith's "Invisible Finger"1 (the middle one, of course) causing such people to self organize into a group that decides that it's no longer worth their while to work as much any more.
Also, even though I am personally fairly likely to close down my business and stop working if and when Obama's new taxes take effect, I don't see any benefit whatsoever to trying to convince others to do so. The more productive others are, the better off I am. If they want to continue to work hard and don't mind the high taxes so much, why would I possibly want to discourage them? Indeed, after I close my business, I'll be pretty poor and will greatly enjoy the goods and services and handouts that they make possible.
Notes:
1 My co-blogger Howard alerted me to the phrase "Invisible Middle Finger".
9 comments:
Don't think it'll work. Doers and producers work because they're driven by the ideas in their heads, not by profit or a desire to make a good living for their families.
What might happen if socialism really takes hold, God forbid, is that there will be an economy under the radar, people of means will move offshore, into remote areas of Alaska or South America.
With no big earners to tax, where will the money come from to use for pandering to the masses.
It may be over quicker than we think.
If I were a lot younger, I might look forward to the challenge, but right now all I can think of is my six grandchildren and I'd rather they didn't have to deal with Obamarama.
erp wrote: "Doers and producers work because they're driven by the ideas in their heads, not by profit or a desire to make a good living for their families."
Some maybe. However, those that are driven strictly by ideas in their heads and not motivated by greed (profit motive), usually do better in, and often seek out, academic environments. They are generally job consumers, not job producers, and as such are not directly responsible for employment and economic growth.
It takes a huge amount of effort (or at least it took me a huge amount of effort) to turn ideas into a viable plan, get a team of people to buy into that plan, get investors, companies, sponsors, etc. Trust me, it's really a major hassle and it's hard for me to believe anyone would bother if not for money. Not only that, you'll have a heck of a time getting investors to invest if they're not completely convinced you're doing it for money (or at least that money is a major motivator for you). After all, the investors are ONLY investing in it for money (with some minor exceptions).
erp also wrote: "With no big earners to tax, where will the money come from to use for pandering to the masses."
There will still be a fair number of big earners. Some will still want to make as much as possible and will not be particularly demotivated by higher taxes. Others (like me) will be severely demotivated (I'm downright depressed right now).
What you'll see is doctors who decide to start playing golf two afternoons a week, the plumber who accosted Obama who won't bother starting up a plumbing business and hiring others, accountants who retire early, entrepreneurs like me who either give up and/or can't find investors to build the company, etc. But some will soldier on and continue to work hard regardless of the impediments thrown in their way by the government.
Me? I'll gratefully accept the handouts that they make possible.
Of course being successful at taking the ideas out of your head and into the marketplace is hard work, but isn't that a large part of the fun of it?
Academics may be brilliant thinkers, but few are doers or producers.
From what you've revealed about yourself in your writing, it's unlikely you'll be comfortable, either literally or figuratively, living on government handouts.
Just think. What would Hayek say!
I don't know if this will make you feel better or worse.
erp asks: "...isn't that [the work of commercializing an idea] a large part of the fun of it?"
Definitely not for me. I'm only willing to do that for the possibility of being fabulously rich. Otherwise, I'd rather just have a normal job or not work at all.
erp: "From what you've revealed about yourself in your writing, it's unlikely you'll be comfortable, either literally or figuratively, living on government handouts."
It wouldn't be solely government handouts.
It turns out I'm extraordinarily good at frittering away time and enjoying myself while doing so. I play and write music, juggle, read, bicycle, fly kites, body surfing, blogging, all of which are quite inexpensive these days.
Before Reagan's tax cuts, I alternated working as a job shop programmer for a couple of months and then goofing off for a few months (examples: motorcycling across country, crewing sailboats, hanging out and partying, etc.). Indeed, I had planned on spending most or all of my life pursuing that lifestyle. After the tax cuts, then it became plausible to become rich by working hard so I've worked 70+ hour work weeks for the last 25 years. I didn't become rich, but it was worth a shot. Now Reagan's low tax era is just about over and I'm ready to revert back to the other lifestyle.
... but wasn't all that "frittering" BC (Before Children)?
Anyway you have 19 more days before you have to make up your mind.
Frittering was indeed before children, but the children are gettin' towards grow'd up.
I'll be voting for McCain. I have more than 19 days to make any other decisions. I'll wait at least until Obama successfully raises taxes to the promised rates and then at least until they take effect. In addition, since cap gains will still likely be significantly below earned income tax, perhaps it'll still make sense to stay entrepreneurial, just working somewhat less. We'll see.
What you'll see is doctors who decide to start playing golf two afternoons a week ...
My wife will either cut back on her hours, or quit entirely.
She's a nurse, BTW.
Can't play golf if you don't have the income to support the habit and doctors can't raise their fees above Medicare and HMO guidelines.
A local nine hole public golf course closed because it became too expensive to maintain properly (environmental regulations, etc.) and fees would have had to be raised so much few of the regulars would be able to afford it.
Now golfers must play at the exorbitantly expensive club type courses that dot the landscape.
This before the real socialists have even been elected.
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