Economics In One Post

In the previous post, I addressed Three Things Liberals Don't Know.

Here are the SHORT answers to the three relevant questions:

1. How are jobs created?

First, jobs are NOT created by Government.  The Government may hire someone, true.

But even a Government job, with the Postal Service for example, is artificially supported by taxes given by the private sector.  It's not "created" by economic production.

Jobs are created by entrepreneurs, through businesses.  The overall term for this is Capitalism, and Liberals and Statists of all stripes at best don't understand this, or at worst despise it.

Anyway, the bottom line question that should rightly be asked is, "How can we HELP these heroic entrepreneurs grow their businesses and thereby CREATE JOBS?

2. How do we grow the economy?

First, similarly to #1 above, the economy is NOT grown by Government. 

The most they can do is to PRETEND to grow the economy by spending money.  But where do they get that money? 

Some they get by borrowing, then skim off the top for cumbersome administrative expenses, and then spend it on a temporary basis, which provides a phony short-term "growth", increasing our national debt which then has to not only be repaid, but with interest!  A negative-growth proposition, especially long-term.

Some they get by taxes, then skim off the top for cumbersome administrative expenses, and then spend the leftover, which would have been spent anyway if it had not been taxed!  A negative-growth proposition.

Who actually grows the economy?  Again, it's businesses!  The same businesses which employ people who then make money that they can spend on other businesses, creating positive growth.

So the bottom line question that should rightly be asked is, "How can we HELP these heroic business builders to grow their businesses and thereby grow the economy?"

3. What do "rich" people do with the money they have left over after taxes?

There can be many answers, but almost all lead to the same place.

a) Some of their money, often a LOT, is put back into their own businesses, creating more jobs and more growth.

b) Some is invested in other businesses, either directly or through investment portfolios like stocks, which then create more jobs and more growth.

c) Some is spent on "vulgar" "obscene" extravagances like fancy cars, jewels, luxury yachts, and multiple homes.  Thereby providing jobs for car manufacturers, jewelers, yacht builders, home builders, their suppliers and the people who work for those suppliers, and the salespeople who sell these obscene things to the rich -- and thereby creating more growth for the economy.

d) Some, often a LOT, is simply given away to charities, churches, etc.  Historically and typically, the more left over money they have, the more they give away for various causes.  While perhaps economically "neutral", it's the backbone to much good in our nation.

e) For the record, a TINY percentage may be squirreled away in stacks of $100 bills or gold coins in a safe deposit box in a numbered account in some foreign country or Caribbean island.  But the rich are not so stupid as to do much of that.  It's unproductive, a bad ROI (return on investment), and therefore unprofitable.

So the bottom line question that should rightly be asked is "How can we MAXIMIZE the amount of left over money these jobs-producing growth-producing rich people get to keep -- thereby MAXIMIZING jobs and economic growth?"