They may need the Captain to teach them how to communicate.
Something's not getting through on the basic ABCs of economics.
Posted on 02/18/2009 4:47:59 AM PST by Kaslin
Theres one reason, and one reason only, that President Barack Obamas stimulus passed so swiftly through Congress: Most Americans are worried about their jobs. And Barack Obama promises to save or create four million jobs. Even Obamas most ardent opponents embrace the make jobs programs embedded in the stimulus. Construction projects that put people to work, that fits the bill, Sarah Palin told Greta Van Susteran of Fox News. But these big, huge, expanded social programs thats not right, thats not fair.
Neither Republicans nor Democrats get it. The problem isnt just the pork barrel social welfare spending. Its not merely the redistributionist scheme disguised as tax cuts. The public relations backbone of this bill -- government spending on our nations crumbling infrastructure -- is misguided. While the countrys infrastructure may need revamping, this sort of spending will not stimulate the economy. It will not create the kind of jobs Americans need.
When politicians embrace government make jobs programs, they demonstrate a fundamental misunderstanding of the role of employment in the economy. The goal of a thriving economy isnt full employment -- its raising the standard of living. Employment rate means nothing if the jobs it measures do not create wealth for the economy. During the Great Depression (1930-1940), the United States had an average unemployment rate of almost 18 percent; the USSR, by contrast, had full employment. And yet when the Oscar-nominated movie The Grapes of Wrath, chronicling the Great Depression, premiered in 1941, the USSR banned the movie for the simple reason that the poverty-stricken Joads owned a car -- a luxury virtually no Soviet outside the government enjoyed. Full employment did not breed prosperity.
Thats because not all jobs are created equal. Valuable jobs provide products and services the free market supports; useless jobs provide products and services the free market would not support. Valuable jobs provide products and services that enrich quality of life, making it cheaper to live better; useless jobs provide products and services that have minor impact on quality of life.
Heres the magic of private sector jobs. Imagine Bill owns a fruit stand. He sells his fruit for $2 per pound. Herman sees that Bill is doing well, and decides to open a fruit stand of his own. He figures he can undercut Bill and live on less of a profit margin, so he sells his fruit at $1 per pound. Pretty soon, Herman runs Bill out of business. Its tough for Bill. But meanwhile, customers are spending $1 less for their fruit than they were. Theyre spending that extra money at Bobs clothing store, keeping Bob employed -- and Bob can now hire Bill. The bottom line is this: The power of free enterprise creates competition that raises production, lowers prices, and makes lives better for consumers and producers. And thats true even if employment declines in the fruit stand business.
Now lets look at government jobs. Imagine Cool Hand Luke works for the government as a menial laborer. He builds roads in New York. People dont choose to pay Cool Hand Luke -- the government forces them to pay his salary. Now, certain people in New York may benefit from the new road. But they would rather have spent their cash on a new car, or a new computer, or a new business. And the people who live in California, who are also paying Cool Hand Luke, get nothing for their money. Their quality of life is not improved one iota. The bottom line is this: The government can always provide employment, but that employment will not benefit the public nearly as much as a private sector job would.
Americans instinctively understand that quality of life matters far more than employment rate -- and that only valuable jobs increase quality of life. That is why Americans oppose Obamas stimulus package. According to the latest Rasmussen poll, 53 percent of Americans think the stimulus will either fail to stimulate or actually hurt the economy. Unsurprisingly, the only sector of the American economy that overwhelmingly supports the stimulus plan is government employees, by a margin of 49 percent to 24 percent.
And yet our politicians think they can appease us by offering us useless jobs. They think investment bankers will be happy to staff the bureaucracy at the Bureau of Indian Affairs. They believe Americans will be glad to subsidize Caterpillar Inc. employees, rather than putting that cash in their own checking accounts.
Obama might prevent rising unemployment. After all, so did President Jimmy Carter. But hell do so at the cost of private sector employment. Americans will pay the price in standard of living -- but at least they can say they have a job, no matter how useless.
BINGO! Thank you! For the last ten years, Americans enjoyed the highest standard of living ever seen in this country. But, with a blind eye, Libs endlessly berated the policies of the Bush administration and wailed about the "weakening economy".
In liberals' eyes, poverty means not having what rich people have. So, the solution is Socialism.
Breakdown of stimulus and discussion here...
http://www.freerepublic.com/focus/f-news/2188093/posts
Thanks to FReeper libertarian27 for posting.
It was stunning...every network and cable channel...all propaganda.
All from the same template.
No wonder they public is so uninformed.
Hmmm, 53%, now where have we heard that number before?
Isn't that The Majority Of The American People who voted for The One (piss be upon him)?
“When politicians embrace government make jobs programs, they demonstrate a fundamental misunderstanding of the role of employment in the economy. The goal of a thriving economy isnt full employment — its raising the standard of living. Employment rate means nothing if the jobs it measures do not create wealth for the economy. During the Great Depression (1930-1940), the United States had an average unemployment rate of almost 18 percent; the USSR, by contrast, had full employment. And yet when the Oscar-nominated movie The Grapes of Wrath, chronicling the Great Depression, premiered in 1941, the USSR banned the movie for the simple reason that the poverty-stricken Joads owned a car — a luxury virtually no Soviet outside the government enjoyed. Full employment did not breed prosperity. “
This is what people do not understand about communism and capitalism. When you have all of your “needs” provided by the government, you don’t get to choose what you your “wants” are. If any are allowed at all.
I think those who like the big screen TV’s and still want the hand outs are going to be in for a big surprise when they find out what socialism and communism is all about.
Everybody listen:: CAN WE AFFORD THE FEDERAL RESERVE CORPORATION?????? Should we return to Legal Tender as Defined in The Constitution?? or do we continue to let Bankers and Politicians have the ability to PRINT Federal Reserve Notes willy nilly.
I maintain that it will only require 1 State to fix this problem. Arizona,Nevada, or Montana are pretty good choices. The first State to START COINING MONEY, Can Save the Republic.Grant free coinage so people can bring in their own gold and silver for Legal Tender. The US CONGRESS has already Established a Standard of Weights and Measures, as well as Set the Value Thereof with regards to Gold and Silver Coin as required in Article 1.
currently the ratio is 16 to 1, Gold is Officially valued at $50 per ounce. Stamped right on the front of every 1 Ounce Gold Coin.
At the same time The State Shall Accept Federal Reserve Notes for all Taxes. In order to protect it’s citizens the State Bank would have to handle all Conversions from Legal Tender to Federal Reserve notes at face value of course, and make the Necessary Deposits of Federal Reserve Credits to the US Government. How would this play out.
you earned $50 a week in Legal Tender, you owe 25% in taxes that is $12.50. Since Federal Reserve Notes are and were Designed for the sole purpose of Paying Taxes. Thats what you owe in FEDERAL RESERVE CREDITS not Legal Tender. Currently Legal Tender is around $900-$1000 in Federal Reserve Credits per 1 ounce of Gold.
NOBODY but GOVERNMENT is currently REQUIRED to accept Federal Reserve Notes.
Th Federal Reserve Corporation is Not Federal and there is no Reserve. it is Privately Owned , It’s sole function is to INFLATE. (Steal Value from Every American) Only The Federal Reserve can cause inflation by means of Legal Counterfeiting.
eyeamok
I know how we can create 8 million new jobs in two years. Pass the Fair Tax.
I agree 100% with the issues raised with government jobs. What you get is a bunch of Big Digs, huge black holes sucking up money. This is because they are controlled politically by those whose number one interest is power, and power doesnt come from efficiency it comes from redistribution.
I disagree that the past 8 years were the model for a private higher standard of living. Take the fruit stand scenario, it shows how the fruit is sold cheaper by greater efficiency and competition. But our major industry driving the private sector economy was housing. But housing prices rose not fell, so did energy, and food, it all went up , until last year when it all collapsed from the weight of what was driving it, ever increasing debt, inflation, higher interest rates. Now the economy is in huge trouble due to massive private and public debt. Most of the subprime loans were owners cashing out their houses, home equity loans on equity that doesnt exist, really never existed. Now some investor or bank owns the loan worth more than the property and the government and fed are trying to manufacture money to reverse those losses.
The ‘money in our pocket” was gov deficit spending and spending the equity of houses that never existed, ie debt! I am afraid something else has to be fixed, this was a disaster.
That's one promise he'll keep. There are 145 million jobs in this country, and I expect him to save about 4 million of them if he's given the power he wants.
They may need the Captain to teach them how to communicate.
Something's not getting through on the basic ABCs of economics.
I wish these pundits would stop accepting the false premise that the intent of the “stimulus” has anything to do with stimulating the economy.
It’s about converting the USA to a socialist system and about fulfilling 40 yrs of liberal/socialist wishlists.
Yes, I agree it was all a house of cards. I was pointing out the absolute refusal of libs to acknowledge what was good in our lives. I once heard an NPR announcer say on the noon news: “The stock market hit a record 15000 points today, despite the stuggling economy”. People took and took and took and all they wanted was more.
“In liberals’ eyes, poverty means not having what rich people have.”
And look at what will actually happen: The $50K/year auto assembly worker will be forced to take a government subsidized road-work job at $25K.
Trickle up poverty.
Trickle Up Poverty - exactly! In Conservatives eyes, "poverty" means you don't have enough to support yourself or your family and you need help.
The new definition of poverty for Liberals is: You aren't fortunate enough to share in the prosperity of the upper classes, so the upper classes should share some of their prosperity with you.
To them, it doesn't matter that most of the "fortunate" people have worked hard, sacrificed and been responsible stewards of their property/prosperity.
That is the dark side of human nature, to party in the present, at expense of the future. That happens publically (nation debt, printing money) and privately, spending money we think we have we never earned(internet boom, housing boom equity) , partly because everyone else we know is. No one warns what 'has to happen' , 'how it must end', because the warning could hasten the crash. So each rally they are always new suckers that were not killed during the last crash and lured into the new bubble. We are always told 'this one is real'
Schiff hits on one thing, lowering interest rates to effectively negative to stimulate the economy through inflation and redistribution causes long term problems and promotes the WORST in us, that dark side. We keep on seeing these equity bubbles blow up over and over. Each time we are encouraged by everyone, everyone! to speculate and consume and not save. The government is growing during both phases of bubble boom and bust, and we are encouraged to live life for the moment. And it's both party's, and all the investment experts and economists advise us to consume and borrow and speculate. We are screwed, like Rome's fall. American dream, now a nightmare
See # 17 please! My follow up!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.