I am not the sharpest person in the world, but I know that if my patient is very anemic I can't get him better by taking blood from the right arm and transfusing it into the left. This is why I dont understand this new "job creation plan" that hit the news today. As near as I can figure out, money to the federal government comes from taxes. These are the various income taxes, corporate taxes and tarrifs. Taxes that come from the private sector are what fund the government because government jobs cant fund the government. This is because the government pays the federal employee with tax dollars that it then recollects a smaller portion in the form of income tax. This is like transfusing yourself but letting most of the blood fall on the floor. The more government jobs you create the more money you lose and the more money the government needs in the form of tax dollars from the private sector. This causes the private sector to sink and recess as it has to pay more and more to the Federal Government. The report today stated that the new administration is expecting to create 2.5 million jobs in developing new infrastructure, schools and other government funded areas. This isn't an auto-transfusion, its a hemorrhage.
4 comments:
I agree. The government doesn't know what it is doing. Unfortunately, there is no Hippocratic Oath in government, "First do no harm". Their oath is "Always do something, the bigger the better".
The crazy argument from our congress is that we need bailout and stimulus to avoid a further collapse and more recession. Supposedly, even if the government spends a lot money for nothing, it is still money floating around, and we are all better off. This is wrong.
Jobs change when people change what they want to buy or can afford. Bailouts and Stimulus are like throwing a party after losing your job. It interferes with looking for the next job, and it uses up savings. Worse, it is more of the borrow and spend policy that helped cause our problems.
See also Stimulus Does Not Cure a Recession
Andrew Garland Easy Opinions
I'll be back to comment when I can... but for now... re:2nd Throckmorton pic...YIKES! Close call there and um... it's a good thing that wasn't the knife trajectory for the 1st Throckmorton... I'm just sayin.
I guess medicine is never dull. (Pun intended) :)
The fact that the government takes income taxes on money that it's paying you from income taxes is the thing that convinced me as a young adult that the government was basically insane once I realized it.
You want to reduce expenses, make all government payouts tax free and just give people less to make it come out the same.
For every dollar that filters through the government you get to actually use what about a penny? So they should save a ton of money by doing that.
And I mean ANY payment from the government. Tax refunds, medicare payouts, social security, whatever.
Is there a good reason they dont do that? Perhaps the way the IRS is setup they can't actually tell where your money comes from :) Time to abolish them too the bastards.
I agree!
Gas prices have come down so much and it's wonderful! Then you here talk of raising taxes on it and I don't remember what else. They should let the prices fall and the money people are saving at the pump can get reinvested back into the economy or pay mortgages to stave off home foreclosures!
I am always comparing gas prices and was pleased when on my way home I purchased gas for 1.59 a gallon until I saw it for a 1.53, but it was just as well or I would've had to do a Mario Andretti turn and become a Kamikaze driver in the process. :)
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