Thursday, October 14, 2010


Larrey Anderson, writing for American Thinker, has one of the best explanations of why the government is the wrong entity to improve our economy.

It is called, "Three Things Government Cannot Do," and it clearly outlines why government does not belong in the business of business.

There are three things government cannot do, no matter how hard they try. They cannot: (1) produce products, (2) create wealth, or (3) provide jobs that pay for themselves.

In the government, there is no financial incentive for the inventor, the manufacturer, or the laborer to create commodities. As workers in the old Soviet Union used to say, "The government pretends to pay us -- and we pretend to work."

Therefore there is only one conclusion to draw: Government cannot produce anything substantive. No government ever has over the long haul...period. A few socialist regimes have tried...all have ultimately failed.

No wealth is created by the government.

Take a look around you in your home or office.

Whatever you see that is made of plastic (a petroleum product, by the way), steel or microchip was likely either made outside the U.S. or imported for assembly here. Certainly not a single one of them was made by the government.

Why are products made outside the U.S. or only assembled here?

For the most part it is due to: high taxes; overly stringent regulations and the high cost of labor in the United States, due in great part to union demands.

Finally, government cannot provide productive jobs.

"What? Joe, are you saying that the government does not employ people?"

(Sigh!) Of course not! I did not say government cannot provide jobs. I said government cannot provide PRODUCTIVE jobs. (Please try to pay attention!)

In order to benefit the economy, there must be enough jobs that produce something the people want to buy.

The government does not produce anything people want to buy (GM notwithstanding. There is great question whether even they are producing anything people want to buy).

Services? Yes. Product? No.

A business pays its employees on the basis of how the employee will help produce products or services to sell at a profit.

An employee must produce three to ten times the cost of his paycheck to keep the business afloat.

Whatever work a government employee does, it does not and cannot pay for itself (as a businesses' employee labor must).

You, dear reader, are no doubt brilliant enough to know that the government does not pay its employees out of its own money BECAUSE THE GOVERNMENT DOES NOT HAVE ANY MONEY OF ITS OWN. It must confiscate its money from the people at large in the form of taxes.

As Larrey Anderson wrote: "Every time a politician claims that the government is going to increase production, create wealth, or provide jobs...grab your wallet."

Government ownership of productivity is a very bad whose time has not, and will never, come.


ablur said...

The services government supplies is simply a redistribution of your money. In fact, if they wouldn't have taken it, you probably wouldn't need the service.

The government ran for 150 years on less then 5%. Now after accounting for all fees and secondary taxes, your tax burden is almost 50%.

How many wouldn't have the economic problems they are suffering if they had almost double their available income?

I know, you are thinking income doesn't matter we all spend as much as we make. Consider the point that the cost of everything you buy is doubled because of the cost of government. After careful review, that would suggest you would actually have almost four times your current available income. Perhaps you could fund your own retirement.

I know that is a pretty simplistic view, but ponder the possibility that the government has been robbing its citizenry for almost 100 years. They toss us an occasional bone, to reduce the sting. Social security, medicare, food stamps, unemployment, ......

Conservative16 said...

And it's going to get worse and worse, Joe Except for a few of us, no one out there seems to be really reporting the facts. I just don't understand why or how these folks on the left can be so blind and stupid at the same time. Maybe it's because they have so much fear of the Dictator Obama. As you so correctly put it, soon these to be Obama-owned under the cover of his government-takeovers private sector business executives, workers, small business owners and the fellow that owns the candy store on the corner will be out of business, and we will all be on line to get our daily bread..
Maybe then these idiots will wake up.

David Wyatt said...

Excellent. What you have stated used to be Economics 101, but the gov't wants its citizenry to be ignorant of these facts. Thanks for the reminder bro. Joe.

WomanHonorThyself said...

They cannot: (1) produce products, (2) create wealth, or (3) provide jobs that pay for themselves..great find Joe and so concise..thank u!

Lone Ranger said...

A government job is actually a negative job. Every dollar that is taken out of the economy through taxes is a dollar that cannot be spent, invested, saved, or used to employ someone. Government employees are paid with tax dollars -- dollars that have been taken out of the economy. So, government jobs should not only NOT be counted in employment reports, they should be subtracted.

Lisa said...

or perhaps"Eventually you run out of other people's money"?

Lisa said...

check this ut. The world is watching and this is where I will be tomorrow:

Joe said...

ablur: In fact, if you go to this site:

You'll see that the income tax started out as a FLAT TAX at 3%.

Your points are well taken.

Conservative 16: To the average liberal/progressive, facts are like income...adjustable.

DW: The facts are still available, they just aren't taught in school.

LR: Given those who are not looking for work, those who can't find work and those who are working below their needs, we are at over 19% unemploymnet! Imagine what it would be like if governmnet jobs (rightly) were omitted!

Lisa: Go get 'em!

ablur said...

Joe - The 5% had to do with all taxes not just federal. I have a tax burden list 1900-2009, that may be of interest.

I think if people really understood how much of their disposable income goes to even more taxes, they would think twice about their more liberal convictions.

Of course there are those who have no hope of grasping the finer points.

ablur said...

Site of interest
MyTax Burden Calculator
This takes the various options with the Bush tax cuts expiring and tells you how you would fair under each plan.
Check it out.

Z said...

when will it end? and where does it say in the Constitution that gov't ownership is a good idea let along legal? Ah, well.....we have a constitutional professor as president, so he wouldn't go against it.


Anonymous said...

Z, sorry to say that it won't end until 2014

rashid1891 said...

They cannot: (1) produce products, (2) create wealth, or (3) provide jobs