Tuesday, February 23, 2010

Why does the Government get Involved?

So the Senate just passed the job-creation measure bill. My question is, what do they think they are going to accomplish by this? Let's break it down a little and see.

Short-term Effects
In the short run, there will be more jobs created through the highway trust fund, which will be focused on the transit system. Businesses will perhaps have a little bit more profitability due to more people working. Perhaps they will even start to hire some more employees. But what will happen when the government decides to stop the highway trust fund and have things go back to normal?

Long-term Effects
As soon as the government stops the program, the unemployment rate will increase again. As a result, businesses will receive less money from customers because there won't be as many people working. Businesses will respond to this by cutting jobs. That's the cost that they can control remember. Unemployment will continue to increase when this happens, putting us back where we were originally plus a $15 billion increase in the national debt.

Man, that sounds like a good idea! Let's do it! I honestly don't understand what these senators and congressmen are thinking. Aren't we supposed to learn from history? I guess that lesson was skipped in politician school. Why can't they just let the market work itself out? I suppose that would just be too easy.

2 comments:

  1. It's not about efficacy. I get the impression for many of these politicians that they think having more problems or WORSE problems is a good thing-- that way they can claim that they are needed, that there's some useful purpose they can serve.

    As they saying goes, you could fill a whole book with the things they don't know. And several libraries full with the things they "know" that simply aren't true.

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    1. Thanks for the comment! I agree with you on that! It even seems like it's an intentional move to turn the country even more socialist. If people have to rely more on the government and see them as their own personal Savior, the people give their power away. All that this great nation is built on then crumbles.

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