Sunday, June 12, 2011

Sorry, Government Jobs Are Not Real Jobs


This video is perfect to open my blog with as it is a stereotypical argument you will hear from the type of people whose fallacies I will combat. In this case, this stereotypical argument is made by most high school and college teachers. In fact, it is this train of thought that can be found in most high school text books. Let me begin:

Firstly, Hartmann totally discounts the notion that Hoover did not do NOTHING. Look at his inaugural address, in it Hoover talks about all the interventions he took in order to "prevent" worsening. Here's an excerpt:

"[W]e might have done nothing. That would have been utter ruin. Instead, we met the situation with proposals to private business and to Congress of the most gigantic program of economic defense and counterattack ever evolved in the history of the Republic. We put it into action."

One of the interventionist actions Hoover took was that he froze labor wages during his administration in order to combat decreasing income, effectively setting the stage for the Depression as businesses could not adjust to the changes in the market environment.

Hoover's action destroys the falsehood taught everywhere by liberals that free market capitalism caused the Depression. History proves otherwise. If this Hartmann had any clue about economics, he'd realize that bubbles, or booms, are a result of government intervention, which promotes malinvestment and over-consumption, hence the following bust phase which is a self correcting mechanism which really shouldn't be viewed as a destructive force.

Also note, that Eisenhower may have been a Republican but he was no conservative or free marketeer. He was actually courted by the Democratic party before he decided to run as a Republican. Eisenhower was very ignorant of things economical.

Another negligence is the Depression of 1920s, which establishment liberals never acknowledge. In 1920, the unemployment rate jumped from 4% to 12% and Gross National Product declined 17%. President Harding's response was budget and tax cuts resulting in a decrease in national debt of about 33%. Recovery followed this Depression relatively quickly compared to the Great Depression and current crisis thanks to true laissez-faire policies implemented by President Harding. But you hardly ever hear of this. Here's an article about the 1920 depression:http://mises.org/daily/3788

This is no such thing as good government. Yes, government jobs are NOT real jobs. Private sector jobs aren't forcefully subsidized by unwilling citizens, who may themselves be in economic troubles. All private sector transactions that take place are done so voluntarily. If a private sector job underperforms or brings in net loss, then it is cut and corrections are made. This doesn't happen with public sector labor. An obvious example are public school teachers. Because of bureaucracy and curtailing to unions, underperforming teachers are hardly ever punished. Rather they are kept on because of issues like tenure.

So, please, don't be fooled by this typical liberal argument. There is no such thing as good government, only necessary government which is very limited constitutionally.

1 comment:

  1. I like the way you think, Diego.


    Yes, government jobs are NOT real jobs. Private sector jobs aren't
    forcefully subsidized by unwilling citizens, who may themselves be in
    economic troubles




    I basically agree, though I put it in a different way. Government can't create jobs. Any money it spends paying salaries comes from somewhere else, and ultimately comes out of the private economy. Which is to say, people like you and me. When we spend money, we pay people's salaries too. The government only moved those jobs, it didn't create them.

    So even in an ideal world, the government could only rearrange jobs and move them around, never create them. In the real world, the picture is much gloomier: government jobs are inefficient, they often do things that many citizens don't even want - do you really want the FDA bureaucratically delaying new medicines? - the jobs become self-perpetuating bureaucracies, etc. You know the litany.

    Now, I'm not dogmatically against government paying anybody a salary. Sometimes it's neccessary, eg for national defense. But a jobs program it is not.

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