Handsome Rob
Sidekick
- Joined
- Dec 7, 2007
- Messages
- 2,289
- Reaction score
- 48
- Points
- 33
I don't think anybody will deny that the private sector is way better at creating capital the the government, it doesn't mean that they instantly are better creating jobs(see all the one I listed above that need filling). You basically are comparing apples and oranges when it comes to the purpose of each. If we have more teachers, police officers, fire fighters and people working construction on government projects, that is more people who have expendable capital to buy stuff. All that being said we need money to pay those people somehow.
In order for business to grow(employee wise) they need more demand, which means there has to be more people working other jobs to buy their products. Companies look at the short term(like 3 month to 1 year intervals) how they manage things. It's not a case they will say if we hire 100 people the economy will be much better 10 years from now if everybody else joins in with us creating a class of people who spend money. Somebody has to make sure that there is a class of people who are willing to spend money and it isn't the private sector, they just do the best with what they got to make as much profit year by year.
The key to a good economy is having a large amount of middle class people who will spend most of there paychecks and I don't think you will get that letting the private sector be the people who try and keeps as much money as possible in the hands of those middle class people.
That's simply not true. Businesses do have short range plans, but that's not all. They often have long range plans running 5 to 10 years in the future, or even longer. Some capital projects (such as the construction of a large factory) may take years from the planning stage to opening day. Land acquisition, application for permits, environmental impact studies, plant design, selection of a construction company (or companies). All of these things take time before the plant even begins construction. Any business worth its salt will try to figure out how much it will cost not to just get to opening day but beyond that. And governmental uncertainty factors in to those cost projections.
If the government wants to ensure a class of people who will have paychecks to spend, they should ensure that business is allowed to operate as freely as possible and lose as little money to taxes and regulatory compliance as possible. Contrary to what some (not you, but definitely a couple of posters on here) believe, taxes and regulatory compliance consume a lot of time and money--these are resources that if otherwise planted into actual business operations could result in higher productivity (and thus higher employment). Or, if nothing else, more dividends for investors. And dividends would benefit everyone from the wealthy shareholder to the little old lady with a few shares to the millions of Americans who rely on 401k plans as part of their retirement planning. A better dividend payer would be more likely to attract more investors, who could then use that capital to further business.
And we should only have more teachers, fire fighters, and police if the city/county needs it, and it sure as heck shouldn't be the federal government funding any of that.