How to Fix Unemployment

Unemployment is at 4.9% if you believe government figures. Some have placed it as high as 17%. Like the fudged figures of global warming and inflation they are probably not only inaccurate but distorted.

When the first jobs came into being they were the result of a businessperson seeking labor to increase his production rate to meet the demand of his customers. These laborers were hired and paid from the profits the businessperson was able to make. Anything before this phenomena took place was the result of plunder and confiscation. The method of confiscation is the way of government and criminals. Government takes and redistributes but it neither creates wealth or trades for its revenues. The government could trade if it were confident it could raise revenues voluntarily but it prefers to use the method of the criminal by way of taxation. In the scheme of things government is a limited agency that is created to protect the individual rights of the citizens. It cannot be created for anything else without introducing a method of confiscation. When that occurs its reason for being is negated by the injustice it promotes and enforces. Eventually all government that ignores this fundamental ingredient of its reason for being evolves from a free society to a slave pen where the government rules by regulation and taxation, eventual deficit spending and hyperinflation which destroys the currency and demolishes the fiscal integrity of the nation which leads to chaos, rioting, revolution and unless a limited government is created, the scenario repeats itself.

When the government starts chocking the businessperson with regulations and taxes the source of jobs dries up. Profit is no longer possible from production and labor demand subsides to the essential level businesses need to survive. Subsidies only go to the political favorites and the mode of competition becomes weaker and weaker. This condition is brought on by government intervention which translates into disruption of the free or semi-free market. Government may hire but the revenues to pay for the bureaucrats and clerks must come from those who pay taxes. This cuts into the profits of businesses and they retract. Whenever the government spends what taxpayers cannot supply the revenue for, borrowing must start. Thus begins the road to deficit spending and eventual hyperinflation. When the government creates a job it does so in the belief that that job will generate tax revenue. The government ignores the fact that the job costs more than it produces in revenue. Even the revenue agents that collect taxes only act to diminish revenues by diminishing the capacity of business to produce more and hire more.

The recent example of the “stimulus package” is a clear demonstration of how government spending not only doesn’t create jobs but actually destroys them. With a policy of fighting wars in a stalemate fashion without a clear definition and strategy for victory thousands of man and women die in an unproductive use of their lives as the politicians praise the sacrifices the politicians call upon others to make. Tossing borrowed money into the economy as political payoff only incidentally may form a “job”.

The recovery of the economy is projected but the fundamentals are not evident. There is not the desire to pursue a dream if you see the government can cut your pay, confiscate your earnings, fire you or put you in debt or jail. Economic tyranny is being foisted on the market by the government and the results are evident for those who care to see. Without the knowledge that the government will protect you instead of prosecute you why would businesspeople want to work long hours just to please an ungrateful politician who thinks he can steal with impunity.

The pompous blathering of change and hope is no match for stark reality. Promising to produce simply by gaining political power has been proven to be false often. Promises produce nothing. It is mental and physical effort that achieves results and results are the scorecard that should be the criteria for judging the behavior of anyone. We are seeing the results of the actions of our current leaders and their explanations, blaming and excuses are worth no more than their campaign promises.

Whatever jobs that are created will not be the result of any government action. It is the lack of government action in the economy that induces businesses to seek laborers. It is the vision of stability that encourages investment and progress. There can be no stability when we have people in government wanting to install socialist agendas that have been proven to be failures.