Posted: December 31st, 2008 by Militant Libertarian
by Ilana Mercer
The bailout bonanza, based as it is on borrowed and counterfeited money, continues unabated.
Huge ‘public’ works are in the offing—every bit as big as Bush’s welfare and warfare programs.
I’m wasting my breath in the increasingly socialist and statist America. But let me try once again:
No government can create jobs; only economic growth in the private sector can create employment opportunities.
Basic understanding of economics is necessary to grasp that there is no free lunch. For every job “created” by government, an unidentifiable job will, tit-for-tat, be destroyed in the private sector.
The images of earnest men and women put to work by the Obama and Bush bailouts will flood the propagandist news networks.
The multitudes thrown out of work because private economic activity has been crowded out by taxing or borrowing to finance job programs will remain invisible. Also invisible will be the destruction of jobs and reduction in investments, purchasing and overall wealth that ensues when money is taxed away from Americans and funneled to the politicians’ patronage playground.
Investors will suffer the same fate and will be much less likely to take employment-generating risks with their capital. Government borrowing simply serves to reduce capital available to the private sector. A further diminution of assets occurs when government expands the money supply and causes inflation in order to finance job creation schemes.
Read the rest: http://barelyablog.com/?p=3151
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