Big Fish Eat Little Fish. What Happens When There Are No More Little Fish?

Then the big fish turn on each other until there are no fish. That would seem to be the logical end, don’t you think? Not exactly favorable to one’s self-preservation, is it?

It seems to this humble observer that this is what big governments do. They keep eating more and more of the food supply (the economy) until there is not enough left to support them. Are big corporations playing the same stupid game? Maybe that is what Kim Strassel is suggesting in this Wall Street Journal article.

…a growing collection of CEOs and big-business lobbies have fallen in line with President Obama’s cry to raise income taxes on those making more than $250,000. To listen to these CEOs, this is the ultimate self-sacrifice. “I would pay more in taxes” in a budget deal, explained the noble Honeywell CEO Dave Cote, but it would be worth it to “put the economy on a sounder footing.”

By “”put the economy on a sounder footing”, what Mr. Cote is saying is: “If my company makes more money by paying less taxes, the company can pay me more and I won’t mind paying higher taxes.” Ms. Strassel seems to support might interpretation when she says:

Put another way, the Roundtable saw an opportunity to make the one million small American business owners who pay individual income taxes shoulder a big rate hike (up to 39.6%, from 35%) while radically lightening the tax load for the Roundtable’s own corporate behemoths (to 28% from 35%). Any corporate tax reform hinges on closing “loopholes” to pay for a lower corporate rate. Small business owners would lose tax perks along with everyone else—meaning they would pay even more—but they would not benefit from lower corporate rates.

What is good for the goose is apparently not good for the gander”

Some CEOs have taken to spinning bizarre economic logic on behalf of their position. Witness FedEx CEO Fred Smith, who recently explained that it is “mythology” that raising taxes on small business kills jobs. But it was true, he said, that lowering corporate rates for big business will help create jobs. Track that logic.

So, what is a conservative lover of small government and free market capitalism to do when he can’t trust his government and can’t trust the so-called bastions of free enterprise?

Walt Kelly’s comicstrip character, Pogo, once said: “We have net the enemy and he is us.” Pogo was profound on many levels.

Walt Kelly - First Pogo newspaper strip

Enough said!

Well, now you know what I’m thinking. What are your thoughts?

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22 thoughts on “Big Fish Eat Little Fish. What Happens When There Are No More Little Fish?

  1. If only the GOPers could make it clear that there is a huge difference between the mega corporations with their tax attorneys and the small business man. But they are tongue tied on most matters these days so over the cliff we go, or pretty much sell our soul to the government.

    1. We conservatives have no one capable of explaining our message, at least not on the national stage. Paul Ryan knows the message, but all of his charts just turn people off. We need a Bill Whittle on Fox News every day.

      1. I would love to see Bill Whittle on TV everyday! You are right Jim, we just don’t have anyone who can get our message out there effectively and until we do it is going to be hard to start winning again.

      2. Bill Whittle would spell it out in an easy format, but trying to get it done, remains to be seen . We try to post whatever he puts out, he is right on about everything he has to say. As for the rest of them, apparently if they keep quiet we won’t notice them.

  2. Sure these “benevolent” CEOs making tens of millions don’t mind paying a little more. They just want the grunts to pay more too.

    Never trust a rich man. Especially when he says he’s willing to pay more taxes.

  3. The lower 28% corporate rate isn’t part of the fiscal cliff proposals… it was an idea floated by Obama last February or so to garner public statements of support from corporate CEOs to help his reelection. It worked.

    Imho… now that he has been reelected, Obama doesn’t need their public support anymore and the 28% proposal now asked for by the Roundtable will get laughed off.

    Its just like Reverend Wright… as soon as he became a liability he was dropped like a hot potato. Corporate Execs are Obama liabilities now.

  4. The American population has been so manipulated by the mainstream media and the education system that the majority of Americans now cannot see the coming harvest. Yes, “Ignorance is bliss,” but only for a time.

      1. I dont’ believe we DO trust them to educate our children, or there would not be so much home schooling. Now they are going after anyone that home schools, they might actually tell their children the truth about what is going on in this country and we can not have that.

  5. A week ago I published (in my short-notes, right column) the list of 13 large corporations members of the Business Round Table under the title, “Surprise! Surprise! Crony Capitalism Wants to Raise Taxes On Small Businesses.” (It says it all).
    It still there, with David Cote of Honeywell in second place.
    I

  6. We need to always be clear that support for free market capitalism IS NOT the same as support for big business. Far too many big businesses are more interested in crony relationships with government than in preserving a competitive free market economy. Big, slow-footed, sclerotic and increasingly bureaucratic big businesses are a natural constituency for a big, unresponsive, wasteful, bureaucratic government that will insulate them from smaller, innovative, and agile competitors. Oddly, leftist are always anti-business, but never note that cronyism between big government and big business is a natural outcome of the policies they advocate. Small government with a small footprint in a freer market actually keeps big business honest and in check. While, of course, creating more opportunity and wealth for the poor and middle classes. But that’s too difficult for leftists to comprehend.

  7. Interesting post and great comments. The economy is not exactly the zero sum situation you describe, but it can get there just by raising tax rates to the point that new business cannot start. The large corporations are all about eliminating competition, and raising taxes on the little guys helps their cause. From capitalism to socialism, big business is still big business, and they are all about big business regardless of ideology.

    Pat said it right with, “… free market capitalism IS NOT the same as support for big business.” Remember, Hitler used big business to his great advantage.

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