Thursday, August 4, 2011

Admitting You Have a Problem

Well, the first step to dealing with a problem is accepting you have one.

White House Press Secretary: "The White House doesn't create jobs."

Bravo.  I'm actually surprised they understand this, with their massive Keynesian gavel they've been slamming on our heads lately.

Next step, though, is actually putting your actions behind your words.  You see, if you admit that the White House (executive branch of government) doesn't create jobs, then who does?

Business creates jobs.  Business, with the goal of making profit, producing goods that people want to consume, hire labor to produce those goods.  Those goods meet a demand ( to the demand...think I read that somewhere before).  Those laborers then can purchase other goods with their salary and contribute to funding the government with taxes.

The White House spokesman (Jay Carney), went on to say that "legislative priorities the President believes will create jobs" will help the economy.  Doh!

Well, I guess he needs to go back to step 1.  The legislature doesn't "create" jobs.  Business does.  Government jobs (all jobs, really) are a cost, not a benefit.  Government should only provide services which the benefits outweigh the costs...or those that can only be realized at an organized federal level (e.g., the military).  Economically, you should only invest in that which the benefit outweighs the cost.  Businesses, as a logical being, incur costs only when the benefit is greater, and part of those costs are jobs.  Those jobs are the costs which are incurred by attaining the benefit.

Where does tax revenue come from?  Ah yes, the laborers from the businesses (who are actually the creator of jobs). You see, there would be no government jobs if there was no revenue coming into the government to hire those government workers.  Government doesn't create wealth, it redistributes it.

Well, I guess the simple fact of saying "the White House doesn't create jobs" is pretty good for this administration.  You know what, who am I to lecture on economics?  Listen to an expert.  I wish I could have spent an hour with the Professor.

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