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Government Stimulus Continues to Paralyze the Economy

By: Steve Johnson

2/17/2010 - 18 Comments

The expanding power of the government undermines the economy and society to support itself.

Today is the anniversary of the $800 billion stimulus packages that is responsible for pouring money into the economy, bailing out states and creating temporary government jobs.

Some say that without the stimulus package the economy would be much worse, but I disagree. 

The stimulus money has only postponed the government cuts that still need to be made and have caused us to dig a much deeper debt while we wait for the next round of politicians to make the changes that this round failed to do.

Each Government Job Destroys 7 Private Sector Jobs

The cuts are going to hurt, no question about it, but the longer we wait to make them the deeper we are going to have to cut. 

If we would have make the cuts a year ago, unemployment may be 15 percent – but now that we spent another several trillion dollars – the cuts are going to put unemployment to 20 percent in the years to come.

Not only that, but if the government would have let the states make the cuts to their budgets, the public would have been forced find new ways to sustain themselves - probably by starting new businesses and creating new jobs. 

Instead of starting new businesses, which would have created real jobs, we have a nation that is living on welfare with the government that now owns almost all consumer debt and everyones' homes. 

Reduced Incentive to Work

The worst part is that taxes is increasing to keep the welfare programs funded, which creates less of an incentive to work and causes everyone to think twice about helping anyone in financial trouble when we can simply refer them to the state welfare program. 

If the State has already confiscated my money, I cannot help anyone else.  This government expansion only undermines the economy and society to support itself, while adding more people to be dependent on the government. 

What do we want to become a nation of slaves to our government or a free people, living on our own hard work?

Without the Ability to Profit, Why Invest, Why Hire

Obama and team have been blaming businesses for making profits the goal of their operations.   But profits are the key to economic growth.  Without profits investors have no incentive to invest and management has no incentive to work hard to increase productivity. 

Profits cannot be demonized; they are the life of a growing economy and the hope for increased wages.  Yet we have a President that does not understand this.

When the government increases taxes to fund and expand its programs, it is telling the market that profits and wages are not high enough and therefore the government is going to take the wealth from the wealthy and hand it out by force. 

This is the wrong message because it discourages investments, profits and hiring – which is exactly what the economy is doing today. 

We need to stop the stimulus packages and stop the government from taking wealth away from people so that wealth can once again we accumulated and used to fund new businesses and to motivate managers and workers to earn a better living.

The formation of capital or the profits of successful businesses cannot be targeted by the government for them to take.  Instead of using government to protect businesses from earning profits, we need to protect businesses from the government taking their profits.

Wealthy individuals and businesses are the foundation of job creation.  Wealth creates wealth, just as poverty creates poverty.

If we want more wealth, we need to stop rewarding poverty.  Stimulus packages reward poverty and are incapable of producing wealth.

100 stimulus packages couldn't restore the economy.

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