Jive Weasel

Archive for June, 2009

There are many ways how government had an effect on businessman life. There is a political stability when there is no frequent change in the government, especially through the use of force or violence. There are countries that have government policies that are not stable. Every change in administration is also a major change in government policies. This is not conducive to entrepreneurship. The programs of the government change as soon as new President assumes his office. There is nothing wrong with change if it is for the better. But there is country that the politics are different. There are many political debts to pay to big businessmen who contributed campaigns funds. As a result favoritism creeps in the prejudice or disadvantage of small businessmen who have no connections.

Prices are stable if there are no abrupt changes or fluctuations in the prices of goods and services and in the exchange rates. When the value of the U.S. dollar falls, importers are happy, but not the exporters. When prices keep on increasing, investors are reluctant to do their business. It is hard to plan costs of production and project profits when prices are not stable.

Taxes are needed to fund government projects and programs. However, the payment of taxes should be based on the ability to pay scheme. Tax incentives can encourage entrepreneurs. Many foreign investors choose other countries due to their fair tax programs in their countries.