What is the real Truth about Job Creation?
Watching TV yesterday, I came across our local news channel and a Politician’s giving a speech. I heard the usual political baffle gab, but in the middle of the speech, this politician actually had the gall to claim credit for creating 40,000 new jobs. I nearly threw up. Why? This isn’t the real truth about job creation and the government is spinning the facts… again.
Let me ask you? When you hear this from your politicians, what do you think? Do you believe them? If you do, then I hate to say it, I need to set you straight. Here’s the thing. No government, in any country creates jobs – period.
How are jobs created?
Here are the basics:
- Someone gets and idea
- That someone chooses to act on the idea
- In acting on the idea, they take some risk. The risk they take is two-fold: monetary and personal. By personal I mean they put their character on the line.
- They invest their time developing the idea.
- Someone, the consumer, sees value in their idea and gives them money in exchange for receiving their product or service.
- They then HIRE PEOPLE to help them – they give People Jobs.
This is the only way a job gets created. It is created by an individual who starts a business. Never let your politicians take credit. This is the real truth about job creation. I’m not the only one saying this, here is a great article on the CBS news site.
You see this is where true wealth in society is created and it is called free enterprise. In a true free enterprise system, there is an exchange of value between two individuals (or corporations) and because of the exchange, both parties are better off. That is how wealth is created!
How are government Jobs created?
OK. I have to give in here because this is where your politician looks like he creates a job. In reality, it is simply a redistribution of the profits created by the entrepreneurs who create businesses. The government taxes the profit created by the producers, and re-distributes it to people that “work” for the government. I am not against doing this – don’t get me wrong. The problem arises when the costs of government become so high, that the burden on the producers causes them to cut their costs to pay their taxes and provide a true, wealth creating, job.
There are really only two types of entities in your country that can literally take money from you or your business – the government or a criminal. The only difference is when the government does it, they do it without impunity and call it TAX.
Jobs are created by Producers
Somehow we have lost our way. Our economies in Canada and the USA have flourished because we allow anyone to be, well, anyone. Your success is not determined by your heritage, your ethnic origin or your race. We have a system that allows you to come up with an idea and start your own business within minutes. There are many countries around the world where that is simply not possible.
We have been conditioned by the left wing that wealth is a bad thing. The elite 1% don’t pay enough taxes. They say if you’re in the top 10% you should pay more taxes. All I can say is, they truly don’t understand the truth. If you want to create more jobs, you have to enable wealth and when you do, you create jobs. You have to make it easy for someone to create wealth because in doing so they create jobs.
When business can create jobs we are all better off.
Until next time,
Wealthy and Free Academy
