January 2014 – Presidents Create Jobs?
Dr. David M. Berman www. smellthetruth.com
One of the things I continue to find rather annoying is when the media along with pundits on both sides of the political spectrum, continue to spew out falsehoods. Don’t you just get sick to your stomach every time you hear one of these hacks regurgitate the same old political speak? A particularly irritating one for me is the claims of which President of which Party “created more jobs”?
I have heard Republicans say “Reagan created 10 million new jobs.” I have heard Democrats say “Clinton created millions of jobs.” Both of those statements are patently untrue. Neither Reagan nor Clinton created any jobs. The reason it is important to say this is because most people in America simply have no idea of what a job is much less how a job is created. Before you become enraged at the audacity of my last comment, let me explain;
Question One – What Is A Job?
Although it may seem like a ridiculous question, I assure you it is not. If we take the human element completely out for a moment, we will understand at the most basic level what a job is. A job is a business transaction. Implied in any business transaction is the law of supply and demand. It is really quite simple. If a company needs a worker and the worker is available at a price that is worth the demand, the company hires the worker and agrees to a certain compensation based on the market. If there are 50 workers available for every one job, the demand is low and therefore the compensation is low. If there are 50 workers available for every 100 jobs open, the demand is higher than the market can fill and thus the compensation is high in order to attract the worker. The company will only hire a worker if the company will make money off of that worker. The worker produces something that can be sold (whether goods or services), and the company will only hire when they can make money from the decision to do so. No company hires simply to provide a job. That is not job creation that is charity. Charity is great but it is not job creation.
I know that people are averse to looking at it this way because it seems so cold. After all, these are human beings we are talking about. Before you allow yourself to be whipped up into an emotional frenzy, ask yourself a question; Is this not how you do business? For example, when you go to Wal-Mart do you look for the best deal? Are you at that moment thinking about spending more money in order to “give someone a job?” Are you volunteering to pay double the price on everything in order to give someone a job that is not needed in the company? No you are not. You are seeking to buy a product that you demand at the best price point you can get for the quality you desire. Do you open up a line of credit so you can hire people to do unnecessary jobs for you so they can have a job? No you do not. Why then do you expect a company to do what you would not do?
Being that we are human beings who also care about what we think is right, we have certain laws to protect workers such as safety and other reasonable rules. That of course is fine however the bottom line is still the market. Politicians may claim all day long that they will create jobs but they have no power to create a real job. A real job is one that comes from demand and the fulfillment of that demand. It does not come from government making up a new job out of thin air, or borrowing money to pay people to do what is not necessary.
Question Two – What Creates Jobs?
You will notice I did not ask “who creates jobs?” The reason I did not ask that is because the answer is that no one does. What creates jobs is simply increased economic growth and innovation. President Obama has sold the country a bunch of non sense when he said the “stimulus will create or save (whatever that means) 3 million jobs.” Borrowing money you can’t pay back, in order to pay someone to do a job that is not necessary, for the purpose of cooking short term employment numbers, is not creating jobs. It is the Keynesian shuffle. If it were true that job creation was just a matter of the President and Congress borrowing money and making up job positions at good pay, then why don’t we just do that? Forget about private business and give everyone a great paying job….oh…hold on…they tried that in the former Soviet Union…Cuba….Viet Nam…and China. It did not work, and it never will.
Presidents and Congressmen do not create jobs but they sure can stifle job creation by continued big government spending and intrusion into the private sector. Think about this. If you want there to be more of something you make it easier to do and less expensive. If you want there to be less of something you make is harder to do and more expensive. Every time the government decides it wants to make more rules, it drives costs up. Every time the government decided it wants more of your hard earned money, it drives costs up. Both more rules and more taxes make it more difficult to do business. If it is more difficult, and more expensive, there will be less of it.
Job creation comes from an increase in business activity in both small and large businesses. It will always be that way. We have a high unemployment number now not because too little government involvement, but rather too much. We have too much regulation, too much tax, too much manipulation of markets for political pandering purposes, and just too much intrusion by those with Marxist philosophy in high places. If government spending was the way to prosperity we certainly would have reached economic perfection by now. Spending is clearly not the answer!
Somewhere along the line, the American public bought the lie that Presidents create jobs and the “what are you going to do for me” mind-set became ingrained in the electorate. There are millions of Americans who actually believe that the President can fix all their problems with government services and hand outs. There are vast amounts of people who have no understanding at all of what it is like to start a business. There are many that think the “rich” should pay their way, and that somehow they have a natural right to what another person has worked for.
Do you want a job? Do you desire to prosper financially? If the answer is yes then it is time to stop electing those who continue to sell the lie that the government can create what it has no capacity to produce. Presidents and Congressmen do not create jobs. Unfortunately although they do not create jobs, they sure can kill jobs by destroying incentive and reward. Why would anyone want to risk their capital, and their time and energy, if the government increases the odds that they will lose their investment? Why would anyone want to hire more people when the government makes it unprofitable to do so? Why would businesses want to invest in America when they have better offers elsewhere? When the government makes it impossible to compete with foreign countries, businesses have only two choices; 1) go out of business or 2) move where they can do business. What would you do?
Obama and his fellow Marxists continue to dictate what they say companies and individuals will do. The answer to that is simple. Companies and individuals will leave and invest their money where they will make a return on investment. If the politicians really were concerned about job creation, they would get out of the way so that people could do business. This however is not their agenda. It is not their desire at all. Their desire is power and manipulation, and that comes from their ability to manipulate the tax code and regulations. This, in order to keep themselves in power and their campaigns well funded. They have long ago abandoned their responsibility to defend the Constitution and instead (as I have said so many times before) become the enemies of it.
People, please wake up to reality. If you care about this country, if you value freedom, if you really desire to see prosperity, then you must abandon the silly notion that big government is the answer. You must turn back to the principles this Republic was founded on. President Obama, Congress, the media, and all the political hacks on both sides have sold you a line of pure garbage. Fight the lie. Spread the truth. Live Free Or Die!