We hear it all the time- government kills jobs. Mostly because the Citizen’s United decision lets anyone with money say what they want on TV and radio- even if it’s an outright lie.
Oh, and they say it- over and over again. Government spending is killing jobs. So, their illogic demands that we cut government spending so the number of jobs will soar. Really? And, you buy that?
Since 1974, our businesses have been using the productivity gains to cut the number of people they employ. And, pay them lower wages, especially when we take inflation into account. And, pay their top executives ridiculous salaries- even if the company is forced into bankruptcy. And, government is killing jobs?
I’ve written that the IRS needs plenty more people to catch tax cheats. Mostly solopreneurs who don’t declare (all or part) of their income. Which shortchanges the treasury. And, shortchanges Medicare and Social Security, since the 15% due on the net income is not collected. And, the IRS needs more employees to verify one has health insurance. So, that those that don’t have insurance- and leave us with the bills- can’t escape their fair share.
And, if there are 1,000 people employed by the government and 1,000 people employed by business- is there a difference in the equipment and supply needs for the employees? A needed computer – whether from business or government- will need the same number of manufacturing employees to yield the product. And, most governments have a “Buy America” program- which businesses generally don’t. For telephones, paper, pens- all needed by employees, regardless of their employer.
Oh, right- it was the stimulus. The one that created at least 1.3 million net new jobs- with the possibility that the number should be 3.5 million. (Those figures are from the Congressional Budget Office.) Oh, and that created demand started businesses to hire folks, too! And, except for a few (with new governors of a certain party) states that are laying off people (75% of the total government job losses), our overall employment levels would be growing strongly.
Or, the claim that interest rates will go through the roof. That’s right- I can see those interest rates right now. Where my savings accounts LOSE money due to the fact that I don’t even receive 1% in interest. Wow! Sky-high returns. (Let’s not discuss the returns the crooked banks and bankers amass- LIBOR, anyone?)
The only time government spending can be deleterious to private industry is when the economy is growing steadily- and there’s competition for the same personnel for jobs. But, now, we are even outsourcing government jobs to private industry- at higher costs for the same job than those that would be involved for government employees. In the name of “efficiency”.
Yet, these are the same people that are making government more onerous. By making new rules (that will require government employees) to check ID’s as we vote. (Because I love spending an hour on line to vote now- and waiting longer is so much better.) And, as the Commonwealth of Pennsylvania, being challenged on their new Voter ID law, stated in court , they have ZERO cases of voter fraud to which they can point to justify their new law. (The same is true – as long as 0.01% – or less- potential fraud (not real fraud- just potential) is considered zero.) Or, that want to outlaw abortion by making onerous new rules for clinics and women, all in the name of “smaller government”.
Let’s leave the ‘big lie repeated often’ where it belongs. To history. With the defunct Soviet Union, the defunct German Empire, and the rest of those historical fiascoes.
I love the last line, truly I do. But it is easier to fool people than it is to convince them they’ve been fooled. I tried to have a discussion <—discussion, not fight about the obamacare plan. Now, I'm not one either extreme side of the debate on this one I see merits and I see flaws, and even though I take a more neutral stance I got my head chewed off with sarcasm. We don't live in an era of thinking, we live in a time of sound bites and extremism. In the end, both sides are "good germans" towing their line. We need more people like you. Great post.
Lisa Brandel recently posted..Heart A Glow by Lisa Brandel
Lisa…
This is the bane of our time. Folks seem to continually seek out the answers they want, rejecting those that are substantiated, just to employ the one (typically false) they gives them the answer they wish were true.
As an example, Tor Constantino provided a blog discourse today that discussed how some little kids rejected information- and then lost out big. Just imagine when adults do that- and then vote the way they wished someone gave them the answer- and the rest of us have to live with the consequences of their (ill-informed) votes.
Roy
(reference for Tor’s post… http://thedailyretort.com/somerejectthetruth/ )
Hi Roy,
Interesting post. You are correct that productivity in the U.S. has declined since the 1970s. From 1900 to 1970, the growth rate was 1.6%, and since 1970 it has only been .6%. The productivity growth in the 1980s and 1990s from personal computers and the Internet respectively, pales in comparison to the productivity growth in the first half of the 20th century which included electricity, telephones, the internal combustion engine, etc. In addition there are 2 points you may or may not have considered:
1) Government does create jobs, however many of them are “artificially created” jobs – as in “let’s create a position for ___ (this type of job)”, vs. the job itself being “created” by market demand (ie. growth of a company’s business results in needing more personnel).
2) If you look at the history of the nation and the resulting prosperity, it came from a time when there was less government than there is today. It is true that government regulations (or over-regulation) can “stifle” economic growth. In the private sector, it is very expensive to bring a new employee on board in the first place. In addition, too many government regulations can choke out the free market because when you are required to spend money to follow all of them, often you can have very little leftover for profit. So government does kill jobs in that way. The combination of larger government and decreased productivity has resulted in a slower growth rate for the economy overall.
Karen:
I know you are from Texas and that is the gospel that obtains there. But, few government jobs are “artificially created”.
Moreover, I disagree vehemently with your second paragraph’s assertion. Some of the primary times when regulations were put in place were during the Depression and in the early teen’s of the last century. And, growth was rampant. The regulations were needed to stop the excesses of the businesses that were taking advantage. Food and Drug regulations. Glass-Steagall. Fair Labor. Those are but a few.
I get tired of folks believing that regulations are bad for business. It is generally true – with data that backs up the assertion- that businesses may want Republican government, but they fare better under Democratic leadership.
Roy
That’s funny I always thought government created jobs – sometimes in excess. As in 10 city employees holding shovels at the park. One actually planting flowers…. But we do have the prettiest parks in all of the Carolinas…
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I agree with you that the regulations you mention were needed during the time they were passed – Glass-Steagall, FDA, Fair Labor, etc. My comment about our history stemming from less government regulation and intervention was meant to predate the era that you are referring to. Now, with the proposed cap-and-trade, and the moratorium on offshore drilling, and all of the hoops that are required just to get a drilling permit in place nowadays, those newer regulations do stifle growth. And Roy – don’t get me wrong – yes I am a Texan, and pro-business, but I am also very much an environmentalist too!
Given the predilection of the petroleum companies and their safety records, we should insure that regulations exist to safeguard America before drilling.
We also should insure that that we, the people, receive current value royalties for the oil withdrawn from our resources. It’s not just foreign countries who should be adequately paid- we should as well.
Roy
It’s a pleasure to meet you- and I love the fact that you use the same calendar method as I!
Thanks for your comments!
Hi Sir roy, this page was really strange I love to read this one…
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I had a great time writing it, Fatima! I’m so glad you liked it, too…