Question

As it relates to businesses and government, the question is Why the government seem to spend so much time discouraging entrepreneurs?

Answer 1

The entrepreneurial tradition of America has provided a strong economic base for the nation, and it has been central to the achievement of the American dream for many. However, the unchecked proliferation of federal, state, and local taxes and regulatory requirements today impedes the formation of new business and the nationwide expansion of business. The impact of these counter-productive government policies is nowhere more apparent and far-reaching than in the forming and expansion of small businesses. Small enterprises, which are responsible for the vast majority of new jobs in the economy of our nation, are the first victims of these counterproductive policies of government. The result is a stifling of job creation, economic mobility, and economic expansion. Even well-meaning government-sponsored programs aimed at encouraging business formation and economic development are destroying economic opportunities for the families of our nation.

Many of the same government rules that are portrayed as shielding the citizenry from manipulating "greedy" businesses and gain seekers are actually causing havoc in almost every sector of the economy on American entrepreneurs. Sixty federal departments and agencies are developing, implementing and enforcing federal regulations. This is in contrast to the bureaucracies of state and local government.

Government can implement policies that change the business environment's social behaviour. The government may, for instance, levy taxes on the use of carbon-based fuels and give incentives to businesses using renewable energy. The government can support new technology development that will bring the necessary change. Imposing more taxes or duties than necessary on a particular sector will cause investors to lose interest in that sector. Similarly, a particular sector's tax and duty exemptions trigger investment in it and can generate growth. A high rate of tax on imported goods, for example, may encourage local production of the same products. A high tax, on the other hand

When America is to remain competitive, creative and thriving over the next century, we need to be ready to promote the creation and growth of small businesses. The best way to do this is not by using top-down approaches to policy. The best approaches are to allow individuals to direct their resources to private enterprise and to allow entrepreneurs to succeed and fail on their own merits–not as a result of stifling regulations.