June 2, 2006

The Economic Boom

Dr. Jeff Cornwall has a couple of interesting posts today over at The Entrepreneurial Mind. One post looks at the home-based business bonanza that is boosting the U.S. economy.

One factor that many attribute as an engine of our entrepreneurial economy in the US is our culture, which has over time supported individualism, creativity, and self-determination. A study released on Wednesday by the SBA Office of Advocacy shows evidence of our grass-root entrepreneurial spirit. America's 1.6 million homebased sole proprietors generate $533 billion in annual revenue.

Cornwall also has a follow-up to his previous post on the lousy governmental policy trend of "socialized entrepreneurship," looking at a report on how surging state tax revenues are enabling governors to "invest in economic development".

A new report shows that American governors are pursuing a policy of socialized entrepreneurship by establishing programs to try and pick winning industries and market sectors to support with targeted tax breaks and subsidies.

Here's my plan. View all that extra tax revenue as a problem and not an opportunity. It means we are over-taxed. Cut taxes and simplify regulations and we will see sustainable long-term entrepreneurial economic growth.