Alan R. Bechtold has released the latest issue of ‘E-Wealth Report’ newsletter. This featured article is titled “Economics 101”. [E-Wealth Report]


Alan Bechtold’s latest ‘E-Wealth Report’ newsletter article:

Economics 101

A lot of people seem to believe a “hands-off” approach is best when it comes to government and business. I must enthusiastically disagree.

I run a business and routinely earn a solid income with that business that consistently places me in the top 1-5% of the U.S. per capita average income.

As such, I’m most certainly NOT a big fan of government rules and paperwork, the tax system or anything government forces a business to go through to remain in business and in good standing.

But, I also understand why you can’t possibly turn business loose, without any regulation or oversight, with no guidance or rules, and not see a complete horrific bloodbath occuring at the expense of consumers.

Back when Ronald Reagan was touting his plan to get government out of business, I always thought he was referring to unnecessary paperwork and licensing requirements. I guess I should have listened closer. There was one time I remember him stating that the markets will always correct themselves, given a chance to operate freely – so let the buyer beware.

That opened my eyes to what was REALLY going on.

I felt, at the time, that Reagan meant excessive regulation and intrusion by government on business is bad (I agree). I thought he meant he was untying business’ hands to operate more freely and openly, and to respond more rapidly to the never-ending demands of the eager consumer base (and I agree here, too).

I sincerely believe Reagan was committed to this idea, but he had no idea how it would be taken out of context or he might not have been so enthusiastic.

Since his tenure, we’ve seen countless business regulatory agencies stripped of power – and the laws that govern business operations constantly shriveled and weakened.

Believe it or not, you don’t have to COMPLETELY deregulate the markets to have free markets. And you don’t free markets by removing all regulations and rules of law that govern the operation of corporations.

Remember – we are a nation of free people. Still, we also as people must abide by the law, which is often written on the basis of stopping us from doing things that would bring harm to other people.

It seems to me that Reagan’s heartfelt cry for deregulation of businesses was misread somewhere along the way as a cry for dropping ALL regulation AND legal oversight.

True, dropping virtually ALL regulation of businesses does achieve a level of market freedom. Unfortunately, I believe the deregulation Reagan was referring to was unfair excessive paperwork, unnecessary requirements, stupid senseless permits – and other basically unnecessary or over-zealous regulations – that hold legitimate businesses back and add needless burdens and expenses to their overall growth.

What we got, instead, was over-zealous deregulation of almost every facet of many businesses … including oversight and protection for consumers.

Apparently, the philosophy of our outgoing administration has been to continue this misconception by removing the teeth from any regulatory agency that can’t be decommissioned. This led to a basically ineffective SEC, which is SUPPOSED to be regulating our stock markets and even private equity offerings of companies that don’t list on the stock exchanges.

They are also, if I’m correct in my thinking, responsible for regulation of all the financial advisors and investment firms that have, until just a few short months ago, talked far too many people into loans they couldn’t ever possibly afford, only to get the loan so it could then be re-packaged and re-sold to some other investment group as part of a much larger package.

Kind of like flipping houses for profit – another popular tactic that’s at least partially responsible for the collapsing housing market that helped contribute to our current downturn.

The FTC seems also be be asleep at the wheel. For months now, I’ve written to them, in addition to my written articles calling attention to the widespread promotion of so-called “cash gifting programs” all over the Web and, especially, in videos on YouTube and Google Video.

The FTC’s own Website describes any cash gifting program as a “pyramid or chain” and declares them illegal. I’m certain they get thousands of requests for help from consumers who were taken in by these schemes every day – yet a search of YouTube for cash gifting program still brings up literally HUNDREDS of videos of people opening their clandestine boxes of cash, waving cash in front of the camera and imploring even more people to get suckered into the sordid rip-off.

The FTC states that even PARTICIPATING in one of these scams makes you a scammmer yourself and equally liable for prosecution.

Still, hundreds of people are on YouTube waving cash and imploring other people to join them in their crimes.

Remember – the fact that they’re getting away with it doesn’t make it legal. It is, without question, an illegal activity. They’re just being allowed to keep rolling along. For now.

Today, the Internet is completely inundated with one similar outright scam after another. Sadly, as our injured economy continues to struggle along on its way to an eventual recovery, people are increasingly desperate. This desperation makes them even more vulnerable to the rising number of these scam artists.

It’s one thing when one of these scams takes someone for some money they wish they’d used elsewhere. It’s quite another when they take someone for every last dime they have.

What Ronald Reagan didn’t understand was that the markets do correct when someone tries to over-price or under-deliver. They also automatically correct when someone is an outright scam artist. But this rarely happens at all until hundreds, if not thousands or even tens of thousands of people have been harmed financially before the “proper agencies” finally take up their swords and go into battle to shut down the scam.

With no penalties for such behavior, more and more businesses will start employing that behavior. When more and more businesses are dishonest, it hurts EVERY business in that industry by branding the industry itself as dishonest.

So, in the end – I suppose we should only disdain regulation of an industry if it’s our intention to be less than transparent, less than truthful, and to deliver less than a superb value for the money in our business dealings.

How would you feel about an organization for the marketing industry that would validate companies as basically truthful, trustworthy and honest? Let me know in your comments. Don’t hesitate to let me know if you think I’m totally off-base, too – I’m asking for your feedback to see if there is enough interest to do something about this.

See you next week!

– Alan R. Bechtold, president/CEO, BBS Press Service, Inc.

Author, Will Work for Fun: 3 Simple Steps to Turning Any Hobby or Interest Into Cash (John Wiley & Sons Books)

Co-Producer and star of The FUNdamental You!, on DVD or watch the full-length movie online: http://www.FUNdamentalYou.tv

Producer and Star, Breakfast With Alan, live Ustream TV show every other Wednesday at 7:00 p.m. eastern US Time: http://www.BreakfastWithAlan.com

‘E-Wealth Report’ Newsletter

*IMNewswatch would like to thank Alan Bechtold for granting permission to reprint the latest article.

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