President Barack Obama has been out touring on the bus this week traveling through the Midwest. Yesterday he was in Iowa stating that he would send a jobs package to Congress next month. He's asking lawmakers to pass it, and he will campaign against them if they refuse to pass it. He's referring to the Republicans who control the House. He was in a town hall style meeting in Iowa on Monday night. He's facing criticism because of the slumping economy and job numbers aren't improving much, if any.
It's always typical for the President of the United States to try to convince people they have the ability to create jobs and turn the economy around. I've seen Democrat and Republican presidents alike make promises to create jobs. I can recall President Clinton campaigning on the economy in 1992 and following his election that fall, he held a jobs summit. However, the source of job growth doesn't stem through the government. Jobs must be created through the private sector. Job creation must revolve around the laws of supply and demand. In order for an employer to make a decision to hire new employees, there must be a need for new employees. There must be an increase in demand to supply "x" amount of products which requires labor. If new labor is added, it's because work orders have increased and as a result, there's a need to hire new employees. The free market determines if and when employees need to be added to the work force. It's not the place of government to determine when new employees need to be added to the payroll. The free market in the private sector determines that. That's if there's a free market and it's not being manipulated by the federal government or monopolies are taking place. The problem is our government is trying to control the factors of production. That is nothing more than Soviet style planned economy.
The "jobs" that goverment creates requires taxing the average citizen in order to fund those particular government jobs. Even though there is a need for certain government positions, you can't have an imbalance of government vs. private sector jobs. Otherwise, the government won't be funded properly and there will be a deficit. The government doesn't create wealth. Wealth is created in the private sector. It's through the taxable income from private sector jobs that fund the federal government. There used to be a time when tariffs on imported goods funded the federal government. Consequently, we have so-called free traders in our government today and, as a result, we don't use tariffs like we once did to help fund the government.
President Obama, Congress, and the governors of states may convince the American people they can create jobs. They can't. Only the private sector can truly create jobs. If President Obama or any other president tries to make you think they can create jobs in the private sector, they're lying. However, they can help the private sector by not interfering with the functions of the free market. If the government will allow businesses for the most part to operate the way they see fit, then the private sector will grow once again and jobs will be created. It's the government that's stifling job growth. The government is stifling job growth primarily through burdensome government regulations. Many of the government's regulations upon business make it difficult for businesses to operate. Some of the regulations that government imposes upon business requires businesses to spend money out of their own pockets that they can't afford. Government also hands down mandates to the private sector which are unfunded. That has to stop. Corporate taxes also weigh down businesses, but not like the numerous regulations that government imposes upon business. It's these regulations and unfunded mandates which restrict the size and scope of small and medium-sized businesses across America today.
If President Obama or Congress "desire" to help the economy, the way they can do so is (1) reduce the corporate tax rate or eliminate it all together, (2) end all the regulations which stifle job growth, (3) renege upon the free trade agreements such as NAFTA and CAFTA which have resulted in millions of America's manufacturing jobs to go overseas. I'm not opposed to free trade, but it must be fair trade. There must be a level playing field. These so-called free trade agreements haven't provided a level playing field in America. These three things that I just mentioned will do more to improve the economy than all the government jobs that can be created. The sad truth is President Obama and Congress are doing nothing but destroying capitalism. What we have been seeing in the last few years is the intended direction that President Obama desires for America's economy.
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