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« What Happened to 2.11.10? | Main | There Aren't Enough Words »

Obama Cannot Create Anything But A Sore Thumb

Can Obama Really “Create” Jobs?

By JB Williams

With the unemployment rate doubling from five percent to over ten percent during Obama’s first year in office, despite trillions wasted on ill conceived so-called stimulus spending, making employment issue number one in his first State of the Union address was a pretty safe gamble, in terms of obligatory applause lines.

But jobs are not “created” from thin air, like a rabbit from a hat, unless the government “creates” them with your tax dollars. Eight billion in a high-speed rail system will certainly put some Americans to work, specifically “union members,” aka, Democrat voters.

But there is a very significant difference between Obama’s idea of “creating jobs” and the traditional American method of letting the free market expand so that jobs become available as a natural result of economic growth.

To be sure, governments can “create” jobs – government jobs – taxpayer funded jobs – public sector jobs – jobs that are an increasing drain on the national treasury. And when the national treasury is already broke, and the national debt has already skyrocketed from $10 trillion to $14 trillion in one year, adding more government employees to the payroll for the sake of “creating jobs” from thin air is the worst possible answer to an otherwise simple problem.

When an economy expands, the demand for workers will often outpace the number of folks entering the job market. We’re talking real private sector jobs here, which means an increased tax base as well, and improved tax revenue to the treasury.

The number one threat to our free market economy is our federal government. Public sector jobs are a drain on the treasury – private sector jobs are a boon to the treasury. It’s simple economics…

For more than two years now, team Obama promised to tax “the wealthy” into poverty, while at the same time seizing federal management control of private industry after private industry. “The wealthy” have another name, “investors.” When you target “the wealthy” with punitive tax and regulatory strategies, you target “investors” at the same time.

When investors withdraw from the market due to assaults on their earned assets, or because government is taking an increasingly heavy hand, limiting potential return on investments via new regulation of industries, an already stumbling economy is headed for the ditch, and we can’t call it an accident.

When a free market economy is being systematically driven off a cliff, government created jobs are the only kinds of jobs that can take people off of the unemployment line and save the political ruling class from certain defeat in an upcoming election in which the people are fed up with being driven into an economic corner. But it requires growing government and the national debt.

When people are hungry and without hope, they will buy into any policy that promises a better tomorrow. But in doing so, they may agree to policies that can only bring further destruction to the free market economy. Federal intrusions into the free market are like an anvil chained around the neck of the free economy and sooner or later, the economy will run out of steam to swim against the increasing weight of excessive taxation and regulation, and it will drown.

Growing government has the natural inescapable result of shrinking the private sector. The public sector exists only at taxpayer expense and the private sector provides the fuel for that machine.

It’s important to mention at this point, that there is no such thing as “corporate tax.” Every penny in corporate tax is absorbed by “the people,” – the shareholders, the employees and the consumers.

Therefore, every penny in so-called “corporate tax” is in fact a tax levied on shareholders, employees and consumers. Yet people seem to think they can tax the corporations without paying those taxes from their own pockets. It’s not true… it never was and it never will be true.

If you agree to “government created jobs” you are agreeing to increased taxes to pay for those jobs at the same time. If you think those taxes will be on someone else, then you don’t understand consumer driven economics and the fact that ALL taxes are eventually passed on to consumers.

As your income shrinks, prices at the market soar. Such is the cost of government created jobs… paid for by taxpayers and passed on to consumers.

Yes, something must be done to put Americans back to work and soon. But putting them to work on taxpayer funded payroll is not the answer.

I have another little secret for you today… The truly “wealthy” are not wealthy by mistake. They know how to protect their earned assets from assault and withdrawing from the market is the first step.

Day-traders are riding the government manipulations of the market for profit. But long-term investors have been gone from the market since they realized that Obama was going to become president. Long-term investors are investing in markets embracing free-enterprise, like China. As a result, China is on pace to replace America as the world’s largest consumer driven economy.

If you want jobs - real jobs - private sector jobs, then you have to get government out of the way. You don’t increase taxes; you reduce or eliminate taxes, allowing investment to flow back into the market. You don’t increase regulation; you decrease or eliminate regulations that stifle investment and growth.

Fifty years ago, a household didn’t need two incomes to support a comfortable existence. But fifty percent of your income was not taken in taxes fifty years ago, as it is today. Every household needs two incomes because government seizes one of them in taxation.

This is not a liberal or conservative issue. This is an economic issue that affects everyone, no matter their political stripes.

Obama can “create jobs.” - But only at the expense of the free market economy and the future prosperity of our nation.

We shouldn’t “create jobs” like a rabbit out of a hat. We should insist that the federal government release its stranglehold on the economy and let the American people, investors, employees and consumers, do what only they can do.

Never again confuse “created” public sector jobs with “productive” private sector employment. They are NOT the same thing.

JB Williams

"A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned - this is the sum of good government." - Jefferson

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