To Create Jobs, Government Should Get Out of the Way!




Date: 10/25/2010

Government and Job Creation

by Ron Paul

As the current economic downturn shows no signs of lifting, we hear quite a lot of rhetoric from current and potential office-holders about what government can and will do to create more jobs. This is especially disconcerting to those who understand that the best thing government can do for job creation is to simply get out of the way.

Jobs are properly created by businesses. Government-created jobs are either fueled by fiat money and manipulated market conditions or directly funded by taxes paid by businesses and individuals who then have less to hire people for real wealth creation. Government-created jobs destroy wealth and sap potential from the economy. The several stimulus bills passed by Congress have done much to expand government but not much to keep money in the hands of real job creators — the entrepreneurs.

Keynesian economists don’t see things this way. They see government spending as a stop gap measure that tides us over through rough economic patches. But is this really the case?

Far from it. The reality is instead of sustaining us until the economy can catch up, government spending perpetuates the problems the bureaucrats and the politicians created. Maintaining a high level of employment is one of the main objectives of the Federal Reserve, which is just one reason it is ill-conceived at its very core: it legitimizes economic intervention which is always destructive. When unemployment rises after the bust of a Fed-created bubble, you can be sure Congress will attempt to rescue the economy through various policies that will always prolong the agony and expand the downturn.

In the late 90’s, it was thought that encouraging home ownership would have a stimulative effect that would ripple throughout the rest of the economy and create jobs. Various government policies favorable to home ownership were enacted and the Fed kept interest rates artificially low so everyone would be able to buy a home, whether or not they could really afford it. For awhile, it worked. The housing boom increased demand for realtors, mortgage lenders, and construction workers. However, as reality sank in, not only are we back to where we were when the bubble began, but we are actually worse off. For example, not only have we lost all of the one million extra construction jobs the bubble created, but we lost another one million on top of that! So not only did the artificial wealth evaporate, but real wealth has been destroyed as well.

Even more sinister are jobs created by war. Recent reports highlight the increasing dependence on contractors to support our war efforts in Afghanistan. Massive corruption is endemic to these highly lucrative positions. Almost half of the contracting companies we use are Afghan owned and include such business models as recruiting away the very same Afghan police force we are training at great expense to the American taxpayer. Meanwhile we have pledged not to leave until the police force reaches a certain level. We also bribe many Afghans to simply not attack us. We are in a proverbial hole in Afghanistan. Our leaders need to just stop digging.

Neither a Keynesian big spending program, nor the military-industrial complex can create long-lasting employment or economic prosperity for our country. The only way to restore both peace and prosperity is to draw down our overseas commitments, along with unconstitutional spending at home and return to the founders’ vision of a limited republic that neither straddles the globe, nor micromanages the domestic economy.



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77 Comments:

  1. A conservative actually told me here on youtube that Ron Paul had nothing to do with the tea party.

    It seems as though even if you do good in this country, people willingly go towards corruption. Perhaps corruption is just part of the system.

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  2. A conservative actually told me here on youtube that Ron Paul had nothing to do with the tea party.

    It seems as though even if you do good in this country, people willingly go towards corruption. Perhaps corruption is just part of the system.

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  3. POKER FACE AND RON PAUL MAKES A GOOD TEAM...Ron Paul 2012...

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  4. Ron Paul is a mason and both of his daughters are rainbow girls, you cannot get that high into politics without being part of the agenda

    Divide and conquer! They control both sides.

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  5. halflifeproductionz

    really? government, government, government, oink oink oink!

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  6. theres one bad thing about ron paul and that is he is to soft spoken. he needs to get pissed and get angry.

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    • really?

      why don't YOU get pissed and angry?

      do you think its easy to hold a sane political philosophy and speak out against the torrents of nonsence for a full lifetime? It takes a disiplined mind to stay clearheaded in a cloudy world and to continue, over and over again, to enunciate the truth for the hearing of those who are confused, in limbo or simply unaware

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  7. Please americans, vote for this man! The world needs your great ideas and that can only come from the freedom you used to have. The path you are in now will destroy the american dream.

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  8. He speaks softly and carries a big country's last hope.

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  9. all rhetoric ....until we stop election fraud and really throw the bums out, its all hot air...

    soon as we stop seiu from counting votes and making the machines ...eff it, just let me know when the militia forms and I will be right there to fight the Second American Revolution.

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  10. Audio was low.

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  11. Please increase the audio.

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  12. chatsworthsharp420

    i still don't understand how there are still obama fans...
    its a wtf moment

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  13. Collusion between the Federal Reserve, Wall Street and government is the problem.
    No borders, never ending "wars", unemployment are symptoms. Getting rid of career Demo-pubs is a good start. Thank You, Dr. Paul.

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  14. Audio sure is quiet, but thank you all the same for posting.

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  15. I'm voting for Ron Paul in 2012 whether he runs or not.

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  16. Take away their money. Put it under your mattress. Keep it out of banks. Exchange all paper for coins, gold, silver, canned food, survival supplies including toilet paper, buy guns and ammunition, buy US.

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  17. yessir

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  18. shits just startin to get bad, give it a couple of more years

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  19. I need this man to be president. He always takes the good guy side and its nice to see a man with strong morals and values working in politics.

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  20. ron paul GO FOR PRESIDENT!!

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