Any meaningful recovery must include significant job creation in order to reduce and pay for our built-in government expenditures. Our current leader seems to think that government created jobs are the answer, despite the fact that government work programs failed to get us out of the Great Depression (and I use that term loosely - 2008 - ? may ultimtely become known as the Great Depression). So let's all work for the government. But wait, then the government would have to tax us all @ 100% just to break even. Guess that won't work. Fact is, the FEWER people that work for the government and the MORE people who work in the private sector is best for the economy. So, what creates jobs in the private sector?
CUSTOMERS. Wake up Washington. Customers create jobs. No matter whether your business provides goods or services, the more customers you have, the more employees you need to service them. Conversely, as you lose customers, you lay off employees (or if you lose too many customers, you simply go out of business). It's that simple.
So what is a customer? I like to think of a customer as a person with money AND the desire to spend it. You can't be a customer without money or something to exchange for what you want. And even if you have money, you're not a customer if you aren't willing to part with it. So if a lack of customers caused businesses to lay people off, WHAT HAPPENED TO ALL THE CUSTOMERS?
Well, I think we can rule out the lack of desire to spend. We love to buy things, we like to eat out, take vacations, go to the movies - the list is endless. That leaves us with, you guessed it, A LACK OF MONEY TO SPEND, because if I had more and I knew that month after month and year after year I'd have more, I guarantee that I'd be spending more. I've got to believe the idiots in Washington are so out of touch with how the rest of us live, they can't figure this out. Oh that's right, they can vote themselves benefits that the rest of us can only dream about, and conjure up money whenever they want. Well, if we print it up ourselves its called counterfeiting, and we can't borrow more than we can pay the interest on. So when we reach our debt limits or don't have job's we STOP SPENDING, businesses LOSE CUSTOMERS, and lay off more employees. It's not rocket science.
It's this simple folks: IF YOU WANT TO CREATE JOBS, YOU HAVE TO REDUCE THE AMOUNT OF DEBT STIFLING THE ABILITY OF MIDDLE AND LOWER INCOME PEOPLE TO CONSUME.
Tuesday, December 28, 2010
Let's look at our problems from a different perspective. I contend that our country digs itself into a deeper hole every day that passes without a significant economic turnaround. We need a recovery to cut unemployment costs, reduce the deficit between payroll tax revenues and benefits paid out by the Great Ponzi Scheme (feel free to ask if you can't figure out what that is), and help defray the cost of all the other automatic spending our government does despite the loss of revenues which occur when our economy tanks. I'm not going to repeat the warnings of I.O.U.S.A; suffice to say that the rising price of gold and silver says it all.