Obama Says More Job Losses Coming
Obama made some statements today saying that he expects more job losses coming. It was an ordinary statement, except one thing jumped out at me. He said the private and public sectors must do a better job at creating jobs. Private sector, yes. Public sector? Not so much.
This is a huge problem in our country. People view public sector jobs as the same as private sector jobs. Here’s the main difference. Public sector jobs, when created, suck capital and resources out of productive means. Private sector jobs, when created, allocate resources toward productive means. One grows the economy, the other restricts the economy.
Yes, some public jobs are necessary, and we must allocate some capital for these functions. But, the goal should be to keep these at a minimum and keep as many of our resources as possible in the private sector to increase our productive capacity and grow our economy. Keeping them at a minimum is not what Obama is saying. He says we must create more!
Here’s the deal… we CAN create more public sector jobs. It just requires out dumb leaders to call for it to happen. They can raise revenue and allocate it towards more jobs. Whether this is a good thing or not is another story (it’s not a good thing). Sadly, our President hasn’t figured this basic economic principle out. I guess we can’t expect the majority of our country to figure this out if our leaders haven’t.
In a nut shell, our government’s actions in the economy will end up slowing our recovery where if they got out of the way completely, the recovery would speed up big time. This includes public sector jobs, stimulus and bailouts.