Government Does Not Create Jobs; In July Alone It Added $9.5 Billion to the Cost of Doing Business

Pivoting away from other issues like the environment ("Bombshell" Experiment: Global Climate Change Caused by Cloud Cover) or education (More Than 200 D.C. Teachers Fired! Progress?), let's return back to jobs and the role that the government plays in job creation.

In my post Coming To Grips With a Political Economy I wrote about a class that I took in college called 'Political Economy.' The class was an attempt to indoctrinate students with the idea that government could create jobs through its actions and could create wealth through proper regulation and control over free markets. I struggled through this class, mostly because I rejected entirely the idea that government can create wealth and jobs through its actions, and today I still believe that.

Government does not create jobs. It takes wealth from those who are productive and creating wealth, cycles it through many layers of bureaucracy and 'management', and then gives that wealth to those people who are favored by the government. Some of those who are favored by the government should be- the Constitution identified those who the government can give 'jobs' to and states further have identified those who the government should give 'jobs' to. But many others who the government gives 'jobs' today in America are simply those who benefit from the kind of crony capitalism and banana republic policies that are more common to two-bit dictatorships and tyrannies.

And the 'jobs' that are created by government are inefficiently created- much wealth and property is squandered and lost and burned by having government provide these jobs because of the many layers of 'management' and bureaucracy that mark the government. This is an acceptable price to pay for fire, police, and military jobs, but for most other 'jobs' the government creates the cost to create these jobs far exceeds the useful good that these jobs provide to society.

For example, many liberals claim that Obamacare will 'create jobs'- agencies and regulatory bodies that will hire overlords and masters who supervise a once-free and vibrant economic sector and regulate, tax, and control it. But the cost of these jobs was demonstrated graphically by the reaction that businesses had to it- after the passage of this law businesses dramatically dropped their hiring of workers. The Heritage report explained why this happened:

Businesses with fewer than 50 workers have a strong incentive to maintain this size, which allows them to avoid the mandate to provide government-approved health coverage or face a penalty; Businesses with more than 50 workers will see their costs for health coverage rise—they must purchase more expensive government-approved insurance or pay a penalty; and Employers face considerable uncertainty about what constitutes qualifying health coverage and what it will cost. They also do not know what the health care market or their health care costs will look like in four years. This makes planning for the future difficult.

Yet President Obama and the modern-day Democratic Party continues to think that regulations, spending, taxes, and control over free people can 'create jobs'. They take wealth from those who have it- either through taxes or fees or by simply sucking up savings by selling debt- and give it to those who they favor and try to pretend that they have made society better. But they haven't- they have killed legitimate jobs that millions of people through their free actions wanted and needed (the unseen hand of the market) and made society less because of their actions that took away freedom and property.

In Latest EPA Rules to Cost 1.4 Million Jobs and a 12% Increase in Utility Bills I wrote about how the Washington Post reported that the new EPA rules that were recently published will cause electric bills will jump 12 percent nationally by 2016 to comply with these new policies, with residents in areas such as Kentucky and Tennessee seeing a 24 percent increase in their utility bills. These policies are project to eliminate 1.4 million jobs- real jobs that will be destroyed by the actions of government, creating people who will no longer be paying taxes any more and will now be sucking down government benefits, all thanks to these policies pushed by Democratic bureaucrats employed by a Democratic President supervised by Democrats in the House and the Senate and supported by Democratic unions and a Democratic media.

And now Wyoming Republican Senator John Barrasso has put together a report that showed that the executive actions of the Democrat President have put in place in July alone an additional $9.5 billion in new regulatory costs by proposing 229 new rules and finalizing 379 rules. Among those rules that are going to add to the cost of doing business, kill jobs, and make our society less productive and wealthy are rules regarding the fake issues of global warming, healthcare reform, and financial regulatory reform rules.

IN JULY ALONE A DEMOCRATIC PRESIDENT PUT IN PLACE $9.5 BILLION IN NEW COSTS! I don't care how many times Obama 'pivots' to talk about jobs, the heart of the matter is that he is wrong about the government being able to create jobs and wealth through its actions- government is best that governs least because when people are free and free to live their lives and free to make their own decisions and free to do with their wealth and labor as they see fit, then jobs are created and wealth is created.

Make the choice in 2012 to turn America away from tyranny and 'government-created jobs' and to freedom and 'people-created jobs'.

For more reading, try Productivity versus OSHA and EPA regulations (Research for business decisions).