Friday, July 8, 2011

Private sector jobs create wealth

And government jobs consume it. NHPR was talking about employment this morning, after a dismal jobs report for last month. The economist doing the talking was full of gloom and doom, there is no sector of the economy with any hiring going on. He thought it was just dreadful that 400,000 government employees had been laid off.
In actual fact, private sector workers, farmers, miners, factory workers, truck drivers, telephone linemen, loggers, salesmen, create real wealth which pays for all the government workers. Government workers don't produce wealth. In fact those 400,000 government workers were costing $400 million in pay and benefits, all if which comes from taxes on the private sector workers.

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