Putting Freedom Back to Work
by Rep. Tom McClintock (R–CA)Congressman Tom McClintock (R-CA) made the following statement to the House Chamber on October 26, 2011:
Mr. Speaker: The government’s continuing failure to address our nation’s gut-wrenching unemployment stems from a fundamental disagreement over how jobs are created in the first place. We are now in the third year of policies predicated on the assumption that government spending creates jobs. We have squandered three years and trillions of dollars of the nation’s wealth on such policies, and they have not worked because they cannot work.
Government cannot inject a single dollar into the economy until it has first taken that same dollar OUT of the economy. True, we can SEE the job that is saved or created when the government puts that dollar back into the economy. What we can’t see as clearly are the jobs that are destroyed or prevented from forming because government has first taken that dollar OUT of the economy. We see those millions of lost jobs in a chronic unemployment rate and a stagnating economy.
Government can transfer jobs from the productive sector to the government sector by taking money from one and giving it to the other. That’s at the heart of the President’s plan to spend billions of dollars to hire more teachers and firefighters and police officers. But these temporary government jobs come at a steep price: every dollar spent sustaining one of these jobs is a dollar taken from the same capital pool that would otherwise have been available to productive businesses to invest in creating permanent jobs.
Government can also transfer jobs from one business to another by taking capital from one and giving it the other. That’s how we got Solyndra. We put a half-billion dollars at risk to create 1,100 jobs (that’s $450,000 per job). Now that half-billion dollars are gone and so are the jobs. And who pays for these losses? Other businesses and their employees – meaning fewer jobs created.







Subscribe via RSS
Got a Tip?