Tuesday, October 26, 2010

Government Job Destruction

Can the government create jobs? Can the government create wealth? If so what is the government "selling “or what does the government pay people to do that "makes wealth" in America?

This question surprising is not asked very often. What Do government jobs do for the nation? First we have to classify what are government jobs do. Except for the military, the government is a regulatory organization. In other words, their purpose is to regulate. So more recent jobs have gone away from this basic view of what government is responsible for. The government has programs that to this day are controversial, such as welfare and "economic stimulus programs". Those programs operate by taxing money from one group and putting it into an organization that distributes it to another. The irony with that system is that it’s not even a one-for-one, only a small percent of the overall funds actually go to the distribution program. For every dollar given, the majority of it is used for operational costs or hiring people to do the job.

For example, if you want to give money to the poor, do it through as few channels as possible, that way less of it is used up in operation cost. So if you really want to take care of the poor you can do it far more effectively then the government can, because when you give someone a dollar that is what they get. When the government does they get about a 10th of that dollar .

Along the same lines can government create jobs? The government can only create regulator jobs, or temporary labor for government jobs. The government can't create long term jobs without a permanent funding source, also known as more taxes. After all that is what funds our government, our money. So if the government is to "create" more jobs then they have to take more of your money. Real jobs and wealth can only come from the private sector, because when a private sector job is created so is a need, so it doesn't go away unless the need does. New private sector jobs are created and paid for with people’s money in the same way as a government job is created. However the job created is not the only benefit. With a provide sector job you also create wealth, or the item of value that that person created.


For example, if everyone in town loves cupcakes, someone might start up a bakery. All of those people that get hired as bakers now have jobs and create cupcakes! Yum. In comparison a government job that is created takes away money that could be spent on ...well...cupcakes...and instead is spent on the government workers. The government workers wealth or (cupcake) is regulated which in turn makes it harder to do business. Thus less people will be hired by that over regulated businesses. So the more government jobs are created, the less private sector jobs are created. So does the government spending make more or save jobs?…..Only if those jobs can continuously be paid for with taxes. With the current growth in government and deficient spending, we can no longer afford to pay for the government programs and workers we have today. The bigger the deficit gets the less money we will have in the future to create private sector jobs. So when the people talk about raising taxes to increase spending, remember that's one less dollar to spend on the things you enjoy and one less dollar to go towards someone’s salary or business.

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