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A serious disconnect

February 13th 2013 21:28
There appears to be a serious disconnect in many minds about government spending, keeping or raising tax revenue and the creation of jobs in the private sector. Most will agree that greater employment or less unemployment is a worthwhile end. As an abstract idea, it would be nice if government spending were reduced and all can object to instances of fraud, but reduction of public spending will not create jobs. It does just the opposite.

Every penny of government spending, every one, is paid to businesses and individuals in the private sector; the money paid out by the government is returned to the government, something like the Lion King Circle of Life.

There is debate in Hillsborough County, Florida, about the expenditure of tax money to design and build a transit system that would have some benefit in attracting companies to relocate in the area and improve our quality of life. We, along with the rest of the country have substantial underemployment. Who would receive the money if the County Commission were to fund a transit system? Start with the designing of the system, design planners, architects, draftsmen, all of whom would then be able hire employees (i.e., people, our neighbors) and the salaries these employees earn is then used to purchase groceries, buy a car, pay rent or mortgage. Each of these recipients is able to hire clerks, salespeople, etc.

When the project is finalized, the actual construction is not done by government employees. It is all completed by employees of private companies. That is what capitalism is, that is how it works.
Should the government spend on infrastructure development and improvements? Can we not? Must we have dangerous or inadequate bridges, public buildings, roadways? We turn to the private sector and not government employees to do the work.

All of the recipients of governmental spending, in turn, pay sales income and other taxes, returning the initial expenditure to the government – which after all, is us. Sometimes the money will be paid to government employees. They, too, buy stuff while protecting the rest of us and at the same time are our police, firefighters, teachers. Shall we save money by allowing unsafe or ineffective drugs into the marketplace?

What is wasteful government spending? Purchasing millions of dollars building aircraft to be sold or even given at no cost to a foreign nation, in accordance with and in our national interest? Explain the foolishness to the employees of Boeing or another manufacturer.

Even welfare payments and Food Stamps are valuable additions to the economy as are Social Security expenditures; cut or reduce these “entitlement programs” will not only hurt the most vulnerable among us but reduces money being inserted into the economy.

There is no place in rational thought for slogans. Perhaps you cannot spend the way out of recession (although that is how it has always worked) but a country sure as certain cannot starve itself out of one.
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