layman_economics on Nostr: Many people hate it when big businesses compete against SMEs. Many people then try to ...

Many people hate it when big businesses compete against SMEs.

Many people then try to put pressure on the government, asking the government to ‘protect the SMEs’.

But how can the government protect the SMEs? Where does the government get the resources necessary to protect the SMEs?

Of course, the government will have to tax all of us in various ways.

Income tax, VAT, inflation, etc.

In other words, we all need to pay, in order to protect the SMEs.

But consider this.

Why do the SMEs need the protection in the first place? Because the SMEs can’t beat the big businesses.

Why can’t the SMEs beat the big businesses? Because we, or at least the majority of us, choose to buy goods and services from the big businesses instead of the SMEs.

Our financial behaviors suggest that we don’t care if the SMEs go bankrupt.

Why then do we need to pay (via taxes) in order to protect the SMEs when our behaviors indicate that we really don’t care about protecting the SMEs?

The people who are vocal about wanting the government to protect the SMEs say that they want to ‘level the playing field’. They say that they care about fairness.

However, there is nothing fair about forcing people to support a cause (via taxes) that they actively decide to not support (by choosing to buy goods and services from big businesses)!

#economics #government #SME