We have all heard talk about jobs during this Presidential campaign, yet we often have a hard time time moving beyond the rhetoric. Obama talks about how many jobs he has added to the economy, but what does it matter if a million jobs are added and 2 million lost? This is why voters need to think beyond the rhetoric, and ask the right questions. How many net jobs were created under President Obama? If more jobs were lost than were gained, there is nothing to be bragging about.
And it should be no surprise that Obama’s economic policies did not create jobs. Hiring government employees can create jobs in the public sector, but it costs jobs in the private sector, because that is where the tax money came from to pay for federal employees. Instead government needs to take a step back and allow companies to do what they do best: create jobs.
Thomas Sowell often challenges the rhetoric of politicians, encouraging readers to think beyond stage one, beyond the handouts and the bailouts to the long term consequences of government action. When considered objectively, you will find that government intervention in the economy has never solved economic issues. Rather, leaving the private sector to its own devices sparks quicker recovery.
[T]he American economy recovered from downturns on its own for more than a century and a half, until President Herbert Hoover intervened after the stock market crash of 1929. Indeed, this was one of those bipartisan interventions so much hoped for by the media — and the results were catastrophic.
The media misconception today is that what we need to speed up economic recovery is to end gridlock in Washington and have bipartisan intervention in the economy. However plausible that may sound, it is contradicted repeatedly by history.
Unemployment was never in double digits in any of the 12 months following the stock market crash of 1929. Only after politicians started intervening did unemployment reach double digits — and stay in double digits throughout the 1930s.
There is nothing mysterious about an economy recovering on its own. Employers usually have incentives to employ and workers have incentives to look for jobs. Lenders have incentives to lend and borrowers have incentives to borrow — if politicians do not create needless complications and uncertainties.
The Obama administration is in its glory creating complications and uncertainties for business, ranging from runaway regulations to the unknowable future costs of ObamaCare and taxes. Record amounts of idle cash held by businesses and financial institutions are a monument to the counterproductive effects of Barack Obama’s anti-business policies and rhetoric. That idle money could create lots of jobs — net jobs — if politics did not make it risky to invest. (Full Article).
To turn our economy around and bring America back from the brink of disaster, Americans’ attitudes needs to move away from the idea that the government can solve problems. The government’s role is to create an environment where people can solve their own problems, or work together through mutually beneficial economic transactions to improve the lives of everyone. Equality under the law, and objectively defined, easily understood laws are what the government should be focusing on, instead of sticking its hands in every situation, and making it worse. Maybe American voters need to find themselves over the next four years, and get back in touch with the founding principals of this great nation.