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- “Entrepreneur” means a person who undertakes, manages, and assumes the risk of a new business.
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-. The “corporation” was one of the great inventions of the 1600’s. The Corporation allowed people to invest in the business without running the risk of losing their personal property if the business failed.
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-. Corporations came part of the law in 1811.
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-. A corporation is a separate legal personality, meaning the corporation has access to tort and contract law the same as a person. It has limited liability to the shareholders, limited to the value of the shares in the corporation. Shares are traded on a stock exchange to determine their value. A Board of Directors delegates day-to-day management to executives. The Board is responsible to manage the company for the benefit of the investors, with reasonable skill, care, and diligence.
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-. In 1901 Andrew Carnegie became the richest man in the world when he sold his Steel Manufacturing company to J.P. Morgan.
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-. The first American patent was issued in 1646 for a device to make knives and sickles. This started a whirlwind of inventions: bifocal glasses, cotton gin, flour mills, high-pressure steam engines, the McCormick reaper, the airplane, Coca-Cola, and the inexpensive Ford automobile……………….
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-. When Twitter went public in 2013 it produced no fewer than 1,600 new millionaires.
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-. People in government will always try to help those who are powerful at the expense of those who might become powerful. Nevertheless America has allowed the freedom to take risks, which also means the freedom to fail.
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-. Wall Street had a strong interest in knowing the truth about corporations whose securities are traded and underwritten. As a result they began imposing regular accounting rules and quarterly, audited reports. This resulted in a huge rise in entrepreneurship.
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-. Governments Interstate Commerce commission and the Civil Aeronautics Board lost their rate-setting and route- allocating powers in the 1970’s. The resulting competition allowed lower prices for almost all goods and entrepreneurship returned to the transportation industry.
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-. The opportunities for people with ideas and a willingness to take risks are plentiful in America. If we can only restrain an overbearing government bent on fairness and income redistribution. The truth is, policies that institute fairness result in crony capitalism and rich politicians.
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-. Unfortunately, “creative destruction” does not exist in government as it does in private industry. Government is a monopoly that protects and grows itself. Today it is trying to take over one sixth of the economy, the medical industry, just as our demographics are becoming more dependent on it.
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-. Once people are dependent on government it is hard to give it up. Unfortunately for the government, it eventually runs out of “other people's money“. Taxes by their very nature are anti-entrepreneurs. By the way, the word is French, it means “undertakers“, which itself has a double reading.
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-. From John Steele Gordon's book , “An Empire of Wealth“.
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RSVP, with comments, suggestions, corrections. Index of reviews available ---
--- Some reviews are at: -------------------- http://jdetrick.blogspot.com -----
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---- www.twitter.com , --- 707-536-3272 ---- Monday, March 31, 2014 ---
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