President Obama's Job Speech
Written by Michael Dean
In today’s economy a lot of people are asking: “How can we create jobs?” Two weeks ago President Obama stood before congress to answer this question.
In his speech President Obama proposed:
• Making investments to prevent layoffs of up to 280,000 teachers.
• Providing opportunities for long-term unemployed veterans.
• Putting Americans to work rebuilding roads, railways, bridges, and schools in need of repair.
• Implementing the most sweeping reforms to the unemployment insurance system in 40 years to help the unemployed transition into work.
• Expanding the payroll tax cut.
• Cutting workers payroll taxes in half in 2012. [Theoretically providing $1,500 worth of tax cuts to the typical American family]
Maybe? Could it be? Why, yes—it is indeed another stimulus.
And where exactly is it going? Apparently, the exact same place it went last time— to unions and government employees.
The major difference? This time the price tag is $447 billion.
Can government create jobs?
Government cannot create true jobs; however, government can destroy them. Although public sector jobs are needed, every job created in the public sector takes at least one away from the private sector. It is a simple practice of redistributing wealth.
But if all this money is going to schools and construction, wouldn’t it at least create some jobs? No. Allow me to explain:
In the private sector when a business seeks to grow its capital, the business will spend $1 with the hope of generating $2. Government spending, contrarily, spends $1 to generate $1 worth of work or supplies, and statistically the return on investment is significantly less than $1. When we misspend our own money, we reap the consequences. When government misspends money, however, government does not reap the consequences—we do.
What is government’s duty?
It is government’s duty to protect inalienable rights and the ability to earn the American dream. It is important to define the American dream in this context: the American dream means to be responsible for yourself—because success is not a guarantee. Jobs should not be created to give nice people who do not have a job a job. Jobs should be created because an entrepreneur believes by hiring an additional person he can increase his businesses profit. Jobs should be created because an entrepreneur believes a larger labor force is necessary to maintain his business and operations. Jobs should be created because an entrepreneur meets a potential employee that he believes would be an incredible addition to his team.
Want to create more jobs?
To create real jobs, don’t invent empty jobs in the public sector. Instead allow entrepreneurs in the private sector to deem when and when not to hire.
Create an environment where entrepreneurs are responsible for their business and its employees, instead of an environment where entrepreneurs are responsible for bail outs.
If you want welfare, go to Europe.
If you can bear the consequences of your own decisions—please, keep America open for business.