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.


  • go fuck urself nutcase..turn of ur internet and stop posting ur shit

  • go fuck urself nutcase..turn of ur internet and stop posting ur shit

  • go fuck urself nutcase..turn of ur internet and stop posting ur shit

  • go fuck urself nutcase..turn of ur internet and stop posting ur shit

  • go fuck urself nutcase..turn of ur internet and stop posting ur shit

  • go fuck urself nutcase..turn of ur internet and stop posting ur shit

  • Dfens

    Maybe if we want jobs in this country we should vote for Congressmen who won’t vote China “most favored nation” trade status. Maybe we should vote for our interests instead of those of their Communist Chinese masters. Ron Paul wants to unilaterally eliminate all tariff protections from our market even as the protections he has already eliminated have plunged us into a second great depression with real unemployment running 22%, but we are so much better off than protectionist countries like China and India whose economies are growing in double digits as ours is stagnating and all our industries are being shipped overseas. Thanks, Ron Paul, for all you do for other countries. Vote for Ron Paul if you want your job outsourced too!

    • GB

      Whatever, trollsky.

      • Dfens

        Another cunning and insightful comment from a Ron Paul supporter!

        • GB

          That’s right. Can’t find a blog where people agree with your views, can you, huh? I doubt you’re changing the minds of anyone here.

        • Dfens

          Yeah, everyone loves what you have to offer, comrade.

        • GB

          I didn’t think you’d have any respectable response.

    • Brian Handey


      Jobs wouldn’t be shipped overseas if Ron Paul were president and Congress woke up and passed the Liberty Amendment, which he has introduced on multiple occasions over the years. That’s because corportations wouldn’t be taxed into going overseas. How can you blame them? This new Health Care has crushed and will crush businesses and jobs because they won’t be able to afford to employ as many people. Nothing in life is free, including Health Care, and that is one of many effects it will have. Ron Paul stands for no capital gains, corporate, or personal income taxes.

      And tariffs are counter-productive. Sure, they call it “protectionist” so non-thinkers, such as yourself, will hear that phrase and automatically assume it must be good. After all, it sounds good. But if we raise prices on goods from other countries, and they have less money to spend on American imports, how is that supposed to help American businesses sell more? People talk about it being a global economy now, fine then…free trade for all. Let fair competition do what competition does – lower prices for consumers and boost sales for producers.

      So if you want a real change, you’d vote for Ron Paul. But you can’t do that until you understand what he actually stands for, instead of coming on sites like this and making a fool of yourself with uneducated rhetoric that makes no sense.

    • Mikus

      Right, Ron Paul is responsible for the wealth and growing economies of the eastern hemisphere, and probably everything bad happening in the USA, right ?

      Might it not be that people in China and India work hard and PRODUCE GOODS and do not waste billions on government and military Like in the U.S ?

      Did the fact that America produces didly-squat and owes 15 Trillion dollars ever occur to you , or the fact that Americans pay 1.6 billion/day in interest ?


      Decades of Financial subsidies have not created any more jobs for Americans. Most of the money gets wasted by Health and Military.

      Go ahead and blame whomever you want to for America’s failings, but at least give credit to China and India credit for working hard towards building a middle-class. China could within a few years, seriously hurt the U.S if it called in some of it’s debt owed by America.

      Fact, the Chinese people are buying as many automobiles as Americans.

      Fact they are saving more than ever, and that means they have purchasing power, unlike the USA which is broke and lives on credit.

      • Dfens

        If you love China so much, traitor, why don’t you move there! Don’t let the door hit you on the way out, just get out!

        A few percent more or less in our tax rate isn’t going to make any difference when the median wage in China is 1/10th what it is here. Plus their businesses are willing and able to use their land and air as a cess pool. Ron Paul and his supporters are all for allowing US businesses to do the same thing here, turning this country into the puke hole China is. To you all I have one thing to say, “leave!”

        • Mikus

          Defens, why havn’t you responded to my questions or any other responses to your posts ?

          We are waiting for any insights you might offer.

    • Mikus

      Why does U.S.A, the greatest nation in the world need subsidies and trade protection from the big bad world ? Scared you might get outworked ? What kind of attitude is that ? You wan’t your government to print the money and give it to whichever companies they wish ? U.S.A used to be a nation of producers, not consumers. Now America is mostly a nation of consumers. Which is fine if you can pay for it. Your dollar is crashing and debt mounting, so you blame the Chinese, and call everyone who explains the truth to you a communist. What is more Communist than a country that cheats it’s taxpayers out of it’s social securites, it healthcare, it’s savings ?

      Are you even familiar with the concept of inflation ?

      Are you telling me you trust your leaders so much that you’d let them spend trillions of dollars of your tax money, handing it over to their friends in the lobbies and war industry.

      Hasn’t worked so far buddy. It didn’t work for the Romans, Soviets or the Chinese. China has realized that it must free up investment in order to make buisnesses more successful. That’s right, foreign investment from places like Canada where I’m from. China’s is starting to practice free market economics, and U.S is regressing into pure socialism.

      How does it feel to add on 1.5 trillion dollars/year in debt. How does it feel to pay 1.6 billion in interest daily ? How a bout one hundreds thousand jobs lost per month !!!! Ask yourself before calling me names and telling me “leave” the country.

      Man, I wouldn’t live in the U.S now, there are no jobs !

      I invest money in China not because I agree with their government, but because I believe in the Chinese people’s desire to be economic leaders of the future, just like the U.S. used to be.

      Are you so nieve that you think America can go on doubling, tripling, and quadrupling their budgets, trying to “spend” their way out of recession. ? Impossible.

      Please. Explain to me how America will spend it’s way out of this recession.

    • Citizen

      Hello Defens

      We’ve been there, done that!
      Hoover’s 1931 Smoot-Hawley Tariff Act plunged the country into the Great Depression. It didn’t work then and it won’t work now.

      Keeping wages artificially propped up with Union sponsored Davis-Bacon wage rates and other Union Monopoly Price Fixing schemes simply keeps American products off of foreign shelves.

      American’s can’t compete in the world market place because of the inordinately high wages being taxed at inordinately high rates.

      What part do you still NOT understand?

    • Libertarian777

      although I typically don’t agree with Dfens, I think one point he is missing is this.

      Fundamentally I don’t feel there is anything wrong with free trade (in the true sense of the meaning). The problem with China is its peg of the renminbi with the US$ (although ‘officially’ there is no peg anymore it’s still there). That plus their capital controls (you can’t take yuan out of the country), results in this imbalane we are seeing.

      With free trade (of capital flows as well), the demand of renminbi should be increasing and US $ decreasing (since Chinese citizens and companies buy and sell goods in China in renminbi). So the appreciation of the yuan would result in higher costs of imported goods in the US over time.

      However, this ‘natural’ appreciation that one would expect is NOT countered by a debasement of the US$.

      One side effect that everyone seems to forget is, not only do we export paper to China (Treasuries), we also export inflation (since their currency is pegged). The fact that the Federal Reserve isn’t seeing ‘enough’ inflation (and thus wants to do more quantitative easing) is because all this free cash is being pumped into emerging markets. We’re exporting inflation.
      This might seem like a good thing, but its not sustainable. Eventually those countries with high inflation will either increase rates or put capital controls inplace (to limit foreign inflows), resulting in the cost of their goods going up. Meaning all the stuff the the US does import now will skyrocket.

      Then again, maybe that’s a good thing? since US exports will then be competitive globally again.

      The only downside is significant social unrest while this occurs.

  • VegEdGoku

    Turn off Youtube and Google filters. Otherwise you are being blocked from The Truth. Turn off TV too. Try to reach those who don’t know it, like reality show watchers.
    Benjamin Fulford, Bill Cooper, David Icke, G. E. Griffin, Bill Hicks, Rafael Correa, Russia Today, Paul Craig Roberts, Carol Rosin, Jeff Rense, Alex Jones, We Are Change, Luke Rudkowski.

  • 3monkeysmomma

    Everybody search the term “Conway cover-up”.

    After attacking Rand Paul will all kinds of ridiculus accusations, it now come out that while a prosecutor, Conway warned his BROTHER twice prior to a drug raid, but the MSM won’t cover the story/scandal!

  • it’s a recorded phone call I believe.

  • it’s a recorded phone call I believe.

  • If we all vote for officials like Ron Paul, and show that we will not settle for anything less than what we need, then politicians will slowly grow less corrupt as the corrupt officials change, or do not get re-elected. Then non corrupt politicians soon take there place, and we have fixed our corruption problem. If more people believed in what I’m saying instead of voting for the lesser of two evils, we would be in a much better position. Tyranny is not found among the educated.

  • If we all vote for officials like Ron Paul, and show that we will not settle for anything less than what we need, then politicians will slowly grow less corrupt as the corrupt officials change, or do not get re-elected. Then non corrupt politicians soon take there place, and we have fixed our corruption problem. If more people believed in what I’m saying instead of voting for the lesser of two evils, we would be in a much better position. Tyranny is not found among the educated.

  • chifylube

    We should buy a nice new mic and send it to Ron Paul.

  • When you weild power over people, a power those people do not have corruption and a feeling of superiority even up to divinity is not uncommon. It’s why people to this day still argue for state’s rights. For the states to be considered Sovereign to give we the people equal footing against the Feds. That is the true structure of our Government and why we have states not provinces.

  • When you’re mad, sanity is madness. Most Americans are crazy. They supplant the state in place of god in some cases and condone everything that goes on by our hand all over the world, all the death, all the murder, all the destruction. The forcing of Governments foriegn people don’t want upon them. Let’s look at Hawaii for example. It’s monarchy was destroyed and the island forcibly annexed against the inhabitants will. Anyone uttering peaceful solutions is branded as a nut.

  • RON PAUL 2012!
    Read Ron’s books, education is important!

  • RON PAUL 2012!
    Read Ron’s books, education is important!

  • then they would call him a “mad man” and totally dismiss ANYTHING he says! so sad~

  • then they would call him a “mad man” and totally dismiss ANYTHING he says! so sad~