Federal Stimulus Package: Creating Jobs Will Not Fix The Economy

President Obama continues to prove to enlightened observers that he knows almost nothing about economics. So far, if there are two choices from which to choose, he and his Administration choose the one that causes the most destruction for America.

Let’s review Economics 101 for a brief moment.

An individual or group of individuals studies the marketplace and decides that there is a demand for a certain product or service. He or they set about meeting that demand by creating that product or service.

A product or service consists of four basic components; materials, labor, overhead and profit, defined below:

Materials are the raw goods used in a product. Think iron or plastic or paper or ideas.

Labor is the cost of changing the raw goods into a finished product. Humans trade their time and ability as labor in exchange for a wage, an agreed-upon amount of money directly connected to the amount of time worked. The process of trading time for dollars is sometimes called a job. Jobs are usually considered in the context of being hired by an employer to provide the labor component of the product.

Overhead is the cost incurred by the business owner/producer, which often includes rent, utilities, taxes and management wages.

Profit is the making of gain in business activity for the benefit of the owners of the business. This is customarily the amount of money retained by the business over and above all costs to produce the product or service.

OK…are we clear? A “job” is only a component of labor cost. It is not an end, but only the means to an end. If a person cannot pay all of their expenses with the income from one job, the must either work a second job, cut their expenses or become educated or trained to qualify for a higher paying skill.

Mr. Obama stated in his first Presidential press conference that he wants to create 4 million jobs with his stimulus package of almost $800 BILLION DOLLARS.

Obama and his staff have determined that there is a demand for JOBS. But if a job is a labor cost of product or service, what product or service is going to be created? Any who decided?

Further, it will take months and months for this “stimulus” money to trickle down into the economy. Have you ever tried to get a Federal or State contract to do work? Takes forever for them to move. Many road projects are planned years ahead of time. Also, a road contractor doesn’t just hire warm bodies to work a paving crew. There has to be skill on the part of the worker.

The only way that the Federal government can create jobs is to hire large groups of people to do menial tasks that require almost no training. Now, is the government going to hire them through a union, or are they going to be non-union? Who will set their labor rates? Who will make job descriptions? Who will manage the workers?

Then, in the end of all this casting about on the part of Congress and the new President, what will happen when the government stops spending this counterfeit money? They created a false demand, and the demand will vanish when the checkbook closes.

So, the economy will crash again, and all those stimulus-paid workers will once again be unemployed.

Ladies and gentlemen, government cannot create anything. It is the leech and the individual citizen is the host. Government relies on armed force to take from one person and give to another.

The Socialist Utilitarians who are running the government, Republican and Democrat, are destroying America as fast as they can. You must provide for your own well-being, and stop assisting the government is stealing from you and your neighbors.

DumpDC. Six Letters That Can Change History.

One Response to Federal Stimulus Package: Creating Jobs Will Not Fix The Economy

  1. facebook zynga says:

    i was starting to believe i could possibly end up being the only student that cared about this, at the least now i acknowledge im not nutty 🙂

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