Mark Cuban, billionaire owner of the Mavericks and serial entrepreneur has written a fascinating blog entry on the best way to cure America’s (and indeed the world’s) economic problems.
He shows why the debate about tax cuts and capital gains is unproductive:
You can cut taxes for 95pct of Americans and raise taxes for the rest. You can cut taxes for businesses and retain the Bush Tax Cuts. You can increase or decrease the capital gains tax 5 or 10pct either way.Â Under both programs the deficit for the country will increase,Â we will borrow and print more money.Â 5 or 10pct variance either way, given the big holeÂ our economy is in wont matter.
We are in an economic mess right now. It doesn’t matter who caused it. It’s here. It doesn’t matter what our Presidential candidates and their economic advisors come up with. Its meaningless.Â
His solution is what has always been the driving force behind the American economy:
The cure for what ails is us the Entrepreneurial Spirit of this country.Â We are a nation of people who encourage , support and invest in those of any and all age, race and gender who will use their ingenuity and come up with a new idea.
Its always the new idea that re energizes this country.Â Industry, manufacturing, transportation, technology, digital communications, etc, each changed how we lived and ignited our economy and standard of living. Tax policy has never done that.Â The American People have.
So what is the specific solution? :
What we need is our candidates to stop yelling at each other and starting looking at the American people and encouraging the best of who we are.Â That is who I want to get behind. That is what I would like to see for our country. That is what will energize and motivate people to create companies and invent products that willÂ turn the economy.
The best time for little guys to start a businessÂ is when the big guys are worrying about surviving in theirs. You dont need to raise money. You need to be smart and be focused.Â I had no idea until this current financial crisis that when I started MicroSolutions, my first company, it was in the middle of a very bad recession. I had no idea whatsoever. I didnt know what the tax rates were, and I didnt care. I had an idea, a floor to sleep on and a lot of motivation.
Now is the time for Entrepreneurs to step up and do our part for our country. Its up to us to start businesses and create jobs. That is the cure to this country’s economic problems.
I also recommend his other article: The Best Equity is Sweat Equity, especially for those concerned about raising startup capital in this tight credit market.