Where do jobs come from?

From Working people are the Job Creators by Riverdaughter:

Anyway, leaving aside the philosophical aspect, there is a straightforward reason why the real job creators are average working people. And when I say working people, I mean anyone not living on their investments. That means drop outs to professionals. I’m not an economist and I’ve only taken a couple of econ courses but none of this is over your head. It’s all common sense. Here’s how it works: you get money from work or a benefit that you worked for. With that money, you can buy things. And the more things you can buy, the more things need to be created for you to buy. And the more need for things to be created, in either goods or services, the more people need to be hired to create those goods and services.

Note that all this depends on there being money priming the pump. There must be a release of money into the system that gets the whole ball rolling. That money can come from either the private or public sector. There is no good or bad money. Public sector money is just as virtuous as private sector money in priming the pump. The money goes into the hands of working people and those working people pass that money into the hands of other working people.

Well that’s simple enough. Government spends money and jobs magically appear. But where does all that money come from if nobody has a job? If there are no jobs there are no working people. If there are no working people how can they create jobs? We have a “chicken or the egg” dilemma here.

Artificial respiration will keep you alive but it’s not the same as breathing. It’s one thing for the government to maintain our social safety nets and another thing entirely to let it try to manage our economy.

Public sector money IS NOT just as virtuous as private sector money because it’s OPM – “Other People’s Money.” It puts politicians in a position to reward campaign contributors and cronies with windfalls. Take a look at Solyndra – half a billion dollars gone and the relatively few jobs it created are gone too.

The government spent $800 billion on the failed stimulus and it barely made a ripple. And nobody went to jail.

But wait! There’s more:

Let me stop here and say a few words about the Government. Wealthy people make The Government sound like some big, unresponsive, evil thing. But the government is whoever you elected to office. They’re supposed to spend money in the way that YOU direct them to. So, if you elect a lot of people who want to spend money in Iraq and Afghanistan, that’s what they’ll do. If you elect people who want to give all our disposable tax money to bankers who wrecked the economy, that’s what they’ll do. If you don’t want the treasury to run out of money to fund highways, schools, high speed internet infrastructure and all of the other stuff that makes this country a potentially nice place to live, stop voting for the people who are giving away your tax money to other wealthy people. It’s YOUR government and you have a right to say what things are important to you to fund. If Government is not working for you, get rid of the people who aren’t listening to what you want. We don’t have to live in a banana republic.

If government doesn’t have my tax money, they can’t spend it. They can’t give it to bankers or spend it on wars. Don’t get me wrong – I believe in government, social safety nets and the need for infrastructure. But the idea that I should give them my money and hope they spend it wisely or I’ll vote them out is bassackwards.

Money is power. The more money we give government, the more power we give them. And as Lord Acton said, “Power corrupts.” I always find it amusing that lefties are the ones most concerned with “Big Brother” while at the same time they are the ones who want to create and empower him.

About Klown Mom

I'm old and I can do what I want.
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16 Responses to Where do jobs come from?

  1. HELENK says:

    even the animals have more sense.
    last week it was a bear, this week it is a deer


  2. HELENK says:

    I worked for most of my life. I never created a job. I was lucky enough to have employers. telephone companies, concrete companies, newspapers, railroads. Now they gave me a paycheck, which I used to support my family. The only government funded job was for the railroads. They provide transportation of people to get to jobs. The federal government and the state and local governments contribute to keeping them running. But in this country the government contributes less than some 3rd world countries.
    I never created a company that hired anyone. I am thankful to those that did.

    • DM says:

      I think on this one, I will disagree, you did create jobs. I wouldn’t put it the way RD put it though. No business can exist without consumers. Consumers are the job creators. Of course, only working people are the ones who can sustain the spending of consumers. Money that comes from government cannot be sustained without working taxpayers. That’s why we’re in trouble. There’s no lack of money, but it has flowed to the top and it isn’t moving. The demand is there, but there’s not enough money for the people to spend. The stupidity of it all, is that the Fed has decided to print more money, and all it has done is make commodities, such as oil more expensive. The oil producing nations are not stupid. They know that a dollar today, after all that printing, is worth less. By printing money, the Fed is taking away money from consumers that would like to buy products that are produced in this country, not to be sent to oil producing nations.

      A good economy needs a working class to produce products that consumers want to buy. Investors do their part to create jobs, but in the end, their part is a small part of the whole picture.

      • HELENK says:

        ok. putting it that way I did by spending the money earned keep the cycle going.

        I guess my gripe is since when is it wrong to create a company , create jobs, make a respectable profit and help the country grow?
        I am not talking obscene profits, I do not want the return of the gilded age and unsafe working conditions, but a company that contributes to the economy that helps the country. When did that become wrong??

    • DM says:

      It’s been said that inflation is a form of tax. Believe that, and inflation is not as tame as the government says. Inflation is hurting the consumer and the economy.

  3. DailyPUMA says:

    Money comes from oil, from a small group of people being able to grow more food than they need to live on, water, wheels and electricity.

    • DM says:

      That was true in the old days. Today, few workers produce tons of food. Our economy is sustained by a higher living standard, hence the producers of household items and luxury goods are the producers of money. The central banks print the money, but it’s the working class that creates money by their labor. Money = labor. When government sends a check for not working, that’s redistribution of wealth. Somebody’s sweat is given to someone else. FDR was good about that. It’s true that he spent money to get the economy moving, but most of his programs went to workers who built bridges, dams, and other infrastructure that are used to this day.

      I want to make clear that Social Security is not in the same category as welfare. People worked and were taxed to receive the SS benefit. There may be problems with that program, but those problems were created by the government, mostly because of inflation. I’m also not against safety nets, but they are not the solution for a broken economy. Safety nets will only make a broken economy worse.

  4. yttik says:

    “Wealthy people make The Government sound like some big, unresponsive, evil thing.”

    Most poor people KNOW it’s a big, unresponsive, evil, thing. You can visit a Indian reservation and get their opinion on benevolent government if you need more evidence. It’s not poor people celebrating the joys of big government. Liberals never used to celebrate big government, either. We used to protest it.

    Government is a necessary evil. That’s not a conservative position, it’s an American one. The only people who love big government are crony capitalists and some misguided liberals who have never had to depend on it.

  5. DandyTiger says:

    I understand the sentiment and the idea. The majority of people are working stiffs. They are what make the world go around. As the system runs, they do the labor, make stuff, do services, and make money, and then spend money. But that’s very, very simple, and is missing a few important points.

    First, you can do all that without any government at all. In anarchy capitalist type systems, there is effectively no government. Small villages or tribes or communities have lived this way to great effect. Usually it is the need to defend that group that requires people form some type of government to manage a militia. That’s where it all starts to go downhill. 🙂

    Second, you can have a very minimal government that doesn’t prime the pump, ever, and doesn’t get in the way of people doing what they want to do. But usually even those minimal governments grow. Especially when they figure out how to take a piece of the pie for everything. The greatest invention for getting a piece of the pie, that really lead to every other aspect of government control, was the idea of a crime against the king. That is, any crime isn’t just a crime between people, it’s also a crime against the king (or government). Which means, the king gets is cut of the penalty. Once you have that, then you want everything to be a crime, so you can not only get more of the pie, but you can effectively control any group you want.

    OK, that aside, the point is that a government doesn’t have to have enough power to be involved in commerce for it to work. So all of the government side of the arguments are silly. But, what if you do have a big government. Then sure, they can get involved in commerce and in the states economy. They can control the monetary system (the real key). They can pick winners and losers. They can provide a safety net. Etc. But should they?

    And here’s the big piece missing from the arguments. The entire point of the merchant class that became more powerful than the royal/lord/landowner (baron class), was because they created the businesses. The businesses themselves became big enough and powerful enough with enough leverage, that they eventually became more powerful than the baron class. That in turn created the middle class and the workers that drive the economy at scales previous systems never saw.

    The point here is that it’s the merchants, the business creators, the entrepreneurs that are the engine that primes the pump. Not the government. Without them you have nothing. If you’re not talking about them, you’re ignoring the big elephant in the room. So then you have to talk about what makes it possible for them to run with an idea and get the ball rolling with a business.

  6. yttik says:

    People waiting for the Gov to create jobs are going to find themselves 16 trillion in debt and unemployed four years later.

    Working class people do create jobs when they consume goods. Staples is hiring and so is Burger King.

  7. Mary says:

    Yeah well. Few days ago RD was bleating that the people in American society MOST like Jesus were the OWS’ers.

    Nuff said.

  8. Glennmcgahee says:

    I managed a restaurant for many years. One thing we learned very quickly was that if we bought a lot of stock like plates, glassware, knives and forks, etc., the staff was careless with it. Many times it ended up in the trash can as they scraped leftover food into the garbage. When we stopped buying a lot of stock, the staff started to be more careful with the stuff because they needed it to do their jobs. I always ordered what was needed but not a whole lot of it at one time. Saved a bunch of money. The less that was provided, the more careful everyone was with what we had.
    I see the gov’t the same way. We at home cannot continue to struggle to see money blown on boondoggles and gifts to donors.

  9. foxyladi14 says:

    That is a great analogy. the less people have the better they take care of it. 🙂

  10. Lizzy says:

    The point RD misses is that workers can’t work, earn and consume without jobs. Small businesses are reluctant to hire in a contracting economy. Major corporations have out sourced and off shored jobs to improve their bottom line. Where does the consumption originate in this scenario?

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