>> He says, without a single shred of evidence.
How about 1.3% growth?
>> But, if the government cannot create jobs, if stimulus is a waste of money, the sequester should not matter to Virginia.
Government can hire people (at taxpayer's expense). But create jobs? No. They are two different things.
The real question that must be answered is, "Who spends your money more efficiently? You, or the federal government?" A question which Warren Buffet answered plainly by saying, "NOT the government" (which is the reason, he says, he is giving his money to Bill Gates to spend).
Government spending comes from one of three places: (a) taxes, (b) borrowing, or (c) printing money.
If government raises taxes, that money comes out of the hands of taxpayers who can no longer buy things with it, and private sector employers need fewer employees, you get the idea.
If government borrows money, the price of borrowing goes up, and as one would expect with an increase in the cost of capital investment, you get less capital investment, and as a result, less employment.
If government prints money, you ALWAYS get price inflation which erodes the purchasing power of a dollar, and that of course, results in lost private sector jobs.
So, government can hire people but it cannot create jobs. When people spend their own money, they will purchase more productivity with it than the government does. So, all things being equal you always want people to spend their money rather than paying it in taxes so the government can hire people.
I don't know of a simpler way to put it. |
