The headlines are full of claims about the number of jobs created or saved by the stimulus package, the impact of the Cash for Clunkers program on U.S. output and, the latest, the reduction in the deficit from the proposed U.S. health care reform legislation.
What total rubbish.
Government spending is just that -- SPENDING. It does not, can not, never has, and never will CREATE any output, economic wealth, or job. The only way -- and I mean the ONLY way -- that profits or wealth or a new job is created is through a business. Businesses are the only entity that can hire labor and capital and combine them in such a way as to create a product or a service that society may decide is worth more than it costs. And that spread between the cost of production and what society is willing to pay is economic value; it is the generation of profits that then enables the taxes that the government collects to spend on the goods and services it thinks America ought to consume.
Private industry is the job creator. Not the government. And this is not wishful thinking, or a political point of view, or a theoretical model. It is an unmitigated, irrefutable fact.
Thank you for keeping reminding us that we're not dealing with rocket science here. Although, rocket science is just about a straight forward. When you push this way, you go that way.
Posted by: Mike Roberts | November 29, 2009 at 12:57 AM
Like pushing on a string! Well said!
It really is remarkably straight forward....just gets so clouded by the usual press coverage.
Thank you! All comments are welcome.
Posted by: Sherry Jarrell | November 29, 2009 at 01:04 AM