printThe bailout bonanza, based as it is on borrowed and counterfeited money, continues unabated.
Huge ‘public’ works are in the offing—every bit as big as Bush’s welfare and warfare programs.
I’m wasting my breath in the increasingly socialist and statist America. But let me try once again:
No government can create jobs; only economic growth in the private sector can create employment opportunities.
Basic understanding of economics is necessary to grasp that there is no free lunch. For every job “created” by government, an unidentifiable job will, tit-for-tat, be destroyed in the private sector.
The images of earnest men and women put to work by the Obama and Bush bailouts will flood the propagandist news networks.
The multitudes thrown out of work because private economic activity has been crowded out by taxing or borrowing to finance job programs will remain invisible. Also invisible will be the destruction of jobs and reduction in investments, purchasing and overall wealth that ensues when money is taxed away from Americans and funneled to the politicians’ patronage playground.
Investors will suffer the same fate and will be much less likely to take employment-generating risks with their capital. Government borrowing simply serves to reduce capital available to the private sector. A further diminution of assets occurs when government expands the money supply and causes inflation in order to finance job creation schemes.
Creating good long-lasting employment lies in producing goods or services for which there is a legitimate consumer demand. Hence jobs in the private sector are real jobs because they are sustained by consumer preferences. Unsustainable government make-work schemes merely usurp the wishes and needs of consumers, and substitute them with the wishes of bureaucrats who are beholden to their political masters.
There is an ethical dimension to job creation in the private sector — it is a voluntary agreement into which both parties enter with a view to mutual benefit. Government job creation, however, involves bureaucrats and job recipients—The Big Three, the Financial Sector, and all other bailout bandits—in a beneficial and voluntary exchange but leaves out of the loop those who pay for the programs through taxes or through unemployment in their neck of the woods.
A multi-billion-dollar government job-creation program is never a good thing, especially during a recession. For one, government-created work schemes and the kinds of jobs government will be creating are well paid, irrespective of productivity.
For another, government workers are covered by rigid, “prevailing wage” legislation. This precludes the necessary flexibility in wage structure, so essential during an economic downturn.
Government must be a lot more limited than it is now. It does have a role to play, but must learn to do more with less.
Also, income tax must either be shifted to a flat tax of no more than 10-15% or scrapped altogether (and replaced by consumption taxes).
Can anyone name one nation or empire that hasn’t gone the way of America? History repeats itself often. I think that you are wasting your breath on the dumbed down population. According to a friend of mine, “change has come”, I guess in the form of Messiah Obama. Yes change has come. I hope that Americans are ready for the shared misery
“For every job “created” by government, an unidentifiable job will, tit-for-tat, be destroyed in the private sector.”
Ilana you’re wrong! (just kidding) For every job created by the govt. you’ll be losing probably two or more in the private sector due to bureaucratic inefficiency in using the stolen money.