Wednesday, August 10, 2011

Jobs, Jobs, Jobs, blah, blah, blah

Now that the President has obliterated America's credit and credibility he has set his sights on jobs!  Watch out below!

This is a man who forced through the greatest job-killing piece of legislation in history, the abomination known as Obamacare, who has pushed continual extensions of unemployment compensation (which rewards people for not working), who has threatened continuously to increase taxes.  And now he has set his sights on jobs!  My first thought is, what took so damn long?  Why wasn't this his only focus when he was elected in the middle of a recession?  Because the Democratic party platform is basically an anti-jobs platform, that's why!  And they've bought everyone off with promises of a free lunch.  "No jobs?--its rich guys' fault, tax them more!!"  That's not a jobs program--its class warfare.

Nothing the Democrats have proposed since Obama was elected (or as far back as I can remember for that matter), from a policy standpoint, has had any chance of increasing employment.  The problem for the Democrats is that they've been completely co-opted by their core base and forgotten (if they ever knew) how economies actually work.  Well, here's a reminder--big companies are always looking to become more productive, as they do so they need fewer employees per amount of output.  If output goes down, like in a recession, big companies lay people off. In a normal environment, some of the people who get laid off from big companies go out and form little companies, which hire other people who are looking for jobs and the economy starts growing again.  That is the normal cycle.

Of course, people who start little companies do so in order to make MONEY.  They don't do it for charity.  So if it costs too much to start a new company they won't do it--its not worth the RISK.  That is the key understanding that the Democrats lack.  Otherwise would they have passed Obamacare in the middle of the worst recession (the President's own assessment) since the Great Depression?  Didn't they realize that all of the Obamacare mandates make it more costly/risky for any entrepreneur to start a new business?  And they also wanted to pass tax increases, which were thankfully prevented by the Republicans, that only would have made things worse!!

To date, the Democrats sole attempt to increase hiring has been based on the ridiculous Keynesian "if you spend it they will hire" Policy of Dreams.  Trillions of dollars of stimulus have been spent to no effect.  How can that be?  The reason is so simple its pathetic:  money doesn't grow on trees!  Every dollar of stimulus has to be taken from someone, either in the form of taxes or borrowing, both of which take an equal amount away from spending!  It is literally robbing Peter to pay Paul.  But its worse than that actually since every dollar that is taken in this robbery is first sent through Washington where the bureaucrats take their cut before sending it on.

So the net-net is that money that could have been efficiently spent by Peter on goods produced by Paul is instead taken from Peter and given to Paul by a Bureaucrat and then, Paul and the Bureaucrat, use Peter's money to buy the same goods that Peter is trying to buy which drives the price up for those goods since there is less of them available since, instead of making goods, Paul and the Bureaucrat are living off Paul who can only make so much.  So the glorious outcome, which is entirely predictable, is that prices rise and employment falls.  And this is the policy the Democrats have hung their hat on.  

If the President wants to increase non-government jobs, and those are really the only ones that matter since I cannot think of one non-defense job where a product is made that actually adds to the country's well-being (that is probably a gross exaggeration but you get the point), then he has to suck it up and make it easier for businesses to hire people.  And that means reducing the cost of doing so--and that means lower taxes and less regulation.


  1. I don't think it's reasonable to call the core constituency of an entire political party ignorant of how economies work.

  2. The core constituency applauds Obamacare, cries that taxes aren't raised further on other people, moans that more regulations (e.g., Cap and Trade) have not not been passed and supports unions that are solely responsible for the decline of American manufacturing. And then they're surprised that the economy continues to stagnate?

    Taking money from one person and giving it to another doesn't grow anything. And that seems to be the Democrats' "solution" to our continuing economic malaise.

    So, although I didn't actually use the term "ignorant" to describe the core of the Democratic party, I think that if I had it would not only have been reasonable but too kind.