90 Million People out of the Labor Pool
90 million people have stopped working or even looking for work. How did that happen? How many of the 90 million are not looking for work because they found a better way to live. Disability, never ending unemployment, little or no education or experience, a shortage of jobs because employers are not hiring to avoid the ugly costs associated with Obama Care.
Many are suggesting that the government needs to spend more money to stimulate the economy and in turn that will cause jobs to appear. Big government doesn’t do anything that stimulates anything other than a free ride for those who choose to accept it.
Let’s look at where the money comes from when Big Government spends money. Yes it’s possible for the government to print money and create it from nowhere, but all that does is devalue the money already in the economy.
Most of the money that government spends comes in the form of tax revenue. Taxpayers who earn money from hard work are taxed at ugly levels. Some pay income taxes on their taxes and some pay capital gains taxes on their investments. Capital Gains are income from investments, but they are not income, that money was income once and was taxed as income but now it’s taxed at a lower rate because that money was taxed the first time it was earned. Another form of tax payer are companies that earned a profit and made money and were stuck with taxes to pay.
Profits are not evil, profits lead to jobs and tax revenue. Profits usually depend on good sales, good products and services, and good decision making on the part of management. It takes money to make money, investments made by individuals and companies lead to good sales, good products and services, and good decisions.
Governments and the elected empty suits who almost always are individuals who couldn’t get a job in the private sector or keep a job in the private sector ; make decisions on how to spend money that government hopes will create jobs, and as usual they are wrong. Money is spent poorly and frequently will serve as mud thrown against the wall hoping some will stick. Poor decisions and misguided intentions can’t possibly have as much positive impact on earning profits and creating jobs as individuals and successful business can.
The efforts to earn profits and make money over long periods of time provide experience, discipline and opportunities for success. The private sector can make better decisions and spend money far more effectively than government.
What gets in the way of the private sector earning profits and creating jobs? Taxes are one big expense that companies and individuals face. Government regulations are another big obstacle that the private sector faces and prevents jobs and profits. Minimum wage requirements that government forces on employers prevents new jobs. When the minimum wage requirements are greater than the value of the job, then companies will not hire.
A job is worth whatever value that job adds to the final product or service that is sold. It may not be a wage that could support a family, but that isn’t what determines how much a job is worth, unless you are a bleeding heart politician and feel that each job must support a family.
A job is worth what it pays and what the employee accepted when the job was offered. The employee must make decisions when the job is offered, if the pay doesn’t support their needs, then don’t accept the job, if that is the only job they can get, then accept that job and go get one or two more to support the family you brought into this world. DO NOT get politicians or unions to coerce the employer into paying you more.
The time to worry about that problem is in high school when you are making choices that will affect the rest of your life. Education, skills and work ethic are the tools to better paying jobs, not politicians and unions.
90 million people are out of the job market, how many of them are supporting themselves and their families through disability, unemployment insurance, food stamps and other money that was confiscated from tax payers and is digging a deeper hole in public piggy bank.
Reduce taxes, let individuals and businesses keep more of the money they earn and let them run their businesses and investments as they believe will earn them more money and profits.
Profits drive the free market economy. Profits stimulate investments and business. Profits are good government is rarely good. Get government out of the way and 90 million people will not be out of the job market.