When the government announces it will create jobs it is committing a scam that weakens an economy and robs resources from the real job creators in the private sector. You may ask how can this be. In this article I shall explain exactly how it happens.
Everyone has heard of Solyndra by now and the jobs that were created and lost by government “stimulus”. When a government says it will create jobs it only has two ways to proceed. It can either hire directly or offer money to “entrepreneurs “ with the stipulation so many jobs will be created. The borrower of government money who promises the greatest number of high paying jobs ( and who is “connected) normally gets the contract and or loan to build or expand his business. This is a false criteria for building an enterprise. Only if the operation will profit will the jobs be sustainable. If the marketing is poor or the market collapses or doesn’t even exist the enterprise will fail just as Solyndra and several other energy enterprises the government encouraged.
One of the common calls for job creation by the government falls under the category of “infrastructure”. You know there are plenty of bridges and roads that need repair and expansion so the reasoning behind the government “job creator’ is to make money available for such projects. Where will that money come from? The government only has three ways to make money available. First it can tax. More taxes means more private entrepreneurs will need to reduce their expansion and job creation. The money the government releases for infrastructure improvements must be collected ( which costs money), dispersed ( which costs money) and in this era of shuffling priorities may be ratholed or utilized for a governor’s pet project or a bureaucrats buddy. Once a bridge is built or a road reconditioned there is no revenue from these endeavors and the jobs are finished and the money depleted. We saw how the shovel ready stimulus worked out.
To compound this approach, if the government doesn’t have enough tax revenue to offer stimulus for infrastructure it must either borrow or print. Either on of these options has pitfalls. The 19 Trillion dollar debt is the result of borrowing. The dropping value of the dollar is the result of printing. Even with these destructive practices job creation by the government cannot be accomplished in a sustainable fashion. Look at the direct creation of government jobs.
The usual ploy in this direction is to talk about more firemen, policemen and teachers. Teachers should not be under the government yoke and education should not be controlled by the government. Filling the classroom with teachers beholden to the government has been found to be nothing more than propaganda machines that teach the youth to endorse government expansion. Firemen and policemen are legitimate government service employees but they must be sustained by government revenues. With a 19 Trillion dollar debt how do you find more money for a job that produces no profit? These jobs are only sustainable if there are private sustainable jobs to carry them.
The only way the economy works in a sustainable fashion is for private enterprise to profit. From the profits the businessman is able to hire employees who must be productive enough to expand or continue the profits. From the profits come surpluses that can be spent to support the functions of a limited government. This is how a sustainable economy works.
What we have now is an unsustainable economy because we have allowed the government to meddle and disrupt private enterprise. If anyone has been paying attention how the government has debased the currency, piled on regulations and restrictions that stifle business, increased and is constantly trying to increase taxation it should not be difficult to determine who has provided the barriers to prosperity. Meanwhile the pompous free spending “leaders’ call for sacrifice and frugality.
The next time you hear a politician talk about job creation review this article and point out to him or her that they do not have the ability or the money and the government is not anything but an impediment to sustainable job creation. They won’t listen or reexamine their views but you will know they are aware of the scam they have perpetrated and that you know it. Scams work only so long as they are believed or ignored.
Tags: government jobs
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