Politics Is About Public Relations—Not Economic Progress

https://grantcoulson.files.wordpress.com/2014/04/incentiveseverywherepicturecorrect1.jpg?w=444&h=288

    Do not think about, write about or deal with  human behavior without determining the effects of incentives.

“Great nations are never impoverished by private, though they sometimes are by public prodigality and misconduct. The whole, or almost the whole public revenue, is in most countries employed in maintaining unproductive hands. Such are the people who compose a numerous and splendid court, a great ecclesiastical establishment, great fleets and armies, who in time of peace produce nothing, and in time of war acquire nothing which can compensate the expence of maintaining them, even while the war lasts. Such people, as they themselves produce nothing, are all maintained by the produce of other men’s labour.”  Adam Smith.

I’m going to commit the perfect crime. I’ll be famous.

Daniel J. Mitchell
Debating How Best to Create Jobs: Markets or Government?

Early last month, I wrote an article for The Federalist on job creation.

I used that opportunity to document that there is a serious problem with jobs under Obama, and I explained that the problem existed in part because the President was intervening with so-called stimulus schemes.

<insert>

    Note how the governments who were hysterically certain about green energy are not commenting on the millions of green jobs that have been created and the amount of money saved by their far-seeing policies. In a few years, everyone will enjoy the quiet dismantling of the huge “wind turbines.” Instead of making the taxpayers pay for this, the responsibility will be shifted to taxpayers. Oh wait, bailing out politicians with taxpayer money is a time-honored tradition.

The far better approach is for government to “get out of the way.”

Though that’s not really correct. I want changes in government policy. Indeed, major changes. But those policy changes would involve less government, whereas Obama pushed major changes in the other direction.

<insert>

    Ah yes. Hope and Change. How has that worked out? Lowered standard of living for all. Another round, if you please until all generations are living in the same 4 rooms.

I took this discussion to the next level in this debate on C-Span.

My opponent, Ross Eisenbrey of the Economic Policy Institute, was my mirror image.

He wanted more spending and I urged less spending.

He called for more intervention and I advocated less intervention.

We would probably even disagree about the answer to 2 + 2 = ?.

Viewers can make their own decisions on who did a better job in the debate. I’ll simply state that my strongest point (at least in my humble opinion) is that businesses only create jobs when they expect new workers will increase net revenue.

But don’t believe me. You can read what actual real-world employers have to say about the topic.

In other words, I agree with the message of this poster. If you think more government is the answer, you’ve asked a very silly question.

<snip>

     The purpose of a business is to make a profit, not provide jobs.

Government Job or Respect–Which’ll It Be?
Cheerio and ttfn,
Grant Coulson, Ph.D.
Author, “Days of Songs and Mirrors: A Jacobite in the ‘45.
Cui Bono–Cherchez les Contingencies

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: