Wednesday, August 24, 2011

Government can't Create Jobs; Only More Government .

Why Government Doesn't (cannot) Create Jobs

city alderman Robert Bauman

If you want to know why $800 billion in government stimulus spending has created 9 percent unemployment, all you have to do is look at the windmill in Milwaukee.

The project involves a single wind turbine 154 feet tall (small by today's standard) that is supposed to supply some electricity to the Milwaukee Port Authority. The $500,000 project is being built with $400,000 in federal stimulus money and another $100,000 from the Wisconsin Focus on Energy Program. It's been several years in the making but things finally seemed ready to go last month when the city finally put the project out to bid. The winner, Kettle Renewable Enterprises, had small subcontracts of $2,000 for women-and-minority-owned firms in its $500,000 offer. However, city alderman Robert Bauman decided this wasn't enough. He vetoed the project, saying more woman-and-minority firms should have been included. "If that means losing $500,000, then we'll lose $500,000," Bauman told the press. [full]

Green Lantern  says it's not the women-and-minorities part—  it's that with government everybody has to have a say in what gets done.  That's true enough, but in his example it's clearly that there are people in government who care more about diversity than outcome.  And those people are always, like Bauman, Democrats.  Always.  Conclusion:
  1. The reason why only private enterprise creates jobs is simple.  Business decisions are made by one person.  If the product or service has a market, production expands. Enough bad decisions and the business disappears. 
  2. Governments should probably only make about a dozen decisions (legislation) a year;  none of them concerning private  enterprise. 

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