Saturday, July 3, 2010

Economic recovery depends upon real jobs.

Real jobs in manufacturing, mining, logging, trucking, farming, air transportation, construction and power generation produce real goods, with a real market value. And the workers get paid, which stimulates demand in the economy. Government jobs do not produce anything with real market value. The wages of government employees come from money taken away from real workers. Creation of a government job does nothing to stimulate the economy because the reduction in real worker's wages is exactly equal to the extra spending power given to the government employee.
The Obama administration has been increasing the number of government employees and disrupting the real economy with uncertainty over health care, taxes, fuel costs, credit availability and green regulations. The $850 billion "stimulus" (porkulus) bill has largely gone to subsidizing state governments. Here in NH, the state budget would be much farther in the red without federal handouts from the porkulus bill.
Obama should work on foreign trade treaties, making credit available, financing research and development, reducing federal red tape, and increasing domestic energy supplies. In actual fact, he has been doing just the opposite.

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