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Friday, July 6, 2012

Economic Double Talk

How tiresome is all this ‘wink wink” media spin on what is good news and what is bad news on the US economy? Spin it anyway you want to, we all know its bad news.

If everybody knows that people dropping out of the work force are not being tallied in the national unemployment figures then why is anybody even talking about them? It makes no sense yet this totally useless unemployment “statistic” is reported every month even though it has no meaning.  

One media outlet will say “less people applied for unemployment benefits this month”, Good news, Good President! Another says “more jobs were lost than created this month”. Bad news, Bad President! Who watches Television News anymore?

Then there is this "job creation” myth. A government can only create a job in abstract since it can either get in the way or out of the way of a private citizens ability to make their own way in the world. In that respect, one can reason, a government can create a job. The government can declare something “illegal” and create an industry like our public sector multi-billion dollar Corrections Industry that keeps more people locked up than any other nation in the world. It’s ok though folks, they’re all criminals!

Or the government can declare you can’t throw certain items in the trash and create a recycling industry. And then the government can decide an industry is needed like the new Green Energy industry the present administration is breaking the bank over.

The hard distinction for people to contemplate is that these “industries” are artificial. They can't stand alone and they lose money. Many times lots of money. And since they are publicly funded ie: taxpayer supported “businesses” the shortfall is made up from public funds. These government organizations operate at a deficit and never can go out of business or become bankrupt since taxes are always taken to shore up the loses. 

We see these people in our community, good people, like us almost, who want to do a good job and raise their kids and have a home etc. But they aren't like us because we in the private sector pay their salaries and they are often higher than our own. How does that work for you?

You see them working and you think the government has created these jobs but they haven’t. What you DON”T see is the jobs and industries that ARE NOT created because the government has taken resources out of the economy to insure that their programs are funded. The money has to come from somewhere and that somewhere is the private sector because the private sector is the only group in ANY nation that actually produces something and creates jobs and wealth. Governments do not create wealth, the money they use comes from the people; taxpayers.

In other words: The Government Sucks…resources from us to transfer it to THEIR idea of what industries this nation should have and, as we have seen, has created a hell of a voting block to boot. It’s not about doing things better or more efficiently, it’s about control and when the government takes too much, private business and private citizens suffer the consequences. And here we are.

Spending tax money to the point of massive deficits does not create jobs. Increasing the public’s tax burden is not going to create jobs. Giving away resources for free isn't going to create JOBS. Not real jobs anyway that last beyond the government's ability to prop them up. If the public has less money in their pockets or are afraid to spend what they do have, no business that isn't selling an absolute necessity is going to survive. All other industries will be in for a hard ride. 

And if you think American citizens are so soft, so spoiled and so obsessed that they couldn't stop buying stupid stuff like the Salad Shooter or go without a pedicure or cable Television, think again. The tougher the economy and the tougher the tax burden the more people will change their behavior and the less they will spend.

And here lies the great unsolvable dilemma of a Socialist state. Try as it might, it can't pick a "right" industry. And as the State grows, it causes other aspects of society to shrink. Like a Cancer. Without the means of production and process of consumption, the jobs decrease and the taxes decrease and the system will fall. It is the unsolvable dilemma of Socialism.

So the Federal Reserve can continue to lower borrowing rates and the government can continue to borrow to hold up it’s public sector house of cards but one has to keep in mind that it’s all borrowed money and there is less and less of the private sector every day to pay it back.

Call it anything you want but this is not a design for a successful nation but more so a design for calculated failure.

And we’re closer to that today than we were yesterday.

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