It’s a season of politics, and this question comes up. The answer is that government does not (should not) create jobs. The government is already far too big and invoved in way too many things.
So who creates jobs? You do. Small and medium size businesses, and some large ones too. So let’s ask – what would make me hire more people?
Your innovation creates new opportunities and new jobs, and innovation often takes investment of profits, which you’d have to have to invest, either in your company, or someone else’s. You want to feel like things around you are stable and not uncertain, otherwise you won’t feel like it is wise to expand your business. And you don’t want to feel like IF you succeed, that much of your profits are being confiscated by taxation. Today the top tax rate is 39.6% Federal + your state taxes (mine is 6.9%) + relatively smaller bites from Social Security, Medicare, and Obamacare. In total is between 40% and 50% for most top taxpayers.
A well known law of economics is that when you raise a tax or fee on anythng, you get less of it. Raising taxes on anyone is not how to stimulate jobs – it’s how you reduce them. We need to ask “Who CREATES jobs?” and make them feel optimistic – and we will have more jobs.
And let us remember that in America (or Canada), anyone can be someone who creates jobs.
You are so right. Government should keep us safe and stay out of the employment business. They can’t run anything right and those things should be for competitive biding compatible company’s. Insurance should be open to national biding from all insurance company’s. Nothing is ever free. If it looks too good and so cheap it’s not right. No free lunch
Certainly agree, as do, I’m sure, almost all your readers. It seems to me that class warfare borne of envy hampers many people from understanding the truth of your message. If I can tax you at punitive levels because you are a selfish, evil capitalist who probably made your money on the backs of the disadvantaged, rather than taking responsibility for my own life and the results of it…..
Right On Larry.. Most folks just don’t get it….
Government jobs are paid for by you and me, the tax payers. It is simple re-distribution.
Private sector jobs are created by true productive creativity – You produce a service or a product I am willing to take money out of my “pocket” (money that I have earned)to give you in payment for that product or service. It is a voluntary exchange, born from individual economic freedom and individual choice and decisions.