I am going to try to explain to the unwashed – AGAIN – how economies work. For those of you that already know, just follow along for the hopeful humor. For those who don’t, pay attention!
Our Feckless Leader vomited once again his brilliant words that the economy is getting better. Christ! If this man does not shut up and stop “helping” the economy we’ll all be dead by next week, or at least broke and well on our way to dead. After the Obamay announcement the market’s plunged drastically. Why? I though His Most Magnificent Self would buoy world markets with that dazzling smile of his alone? And when he speaks to us it should instill confidence and a sense of invulnerability. Instead the world quakes. Why?
First off, the man is a dolt. If he understands economy he sure does not display that understanding when he flaps his gums. If he doesn’t understand them then he ain’t the be all and end all. I mean Bush had an MBA from Harvard, but since Obama is like Sir Paul McCartney implied and able to read, well, this is puzzling at best.
For the sake of explanation, lemme explain how this works in the simplest of terms. Of the 400 some odd thousand jobs allegedly created, 90% of them were government jobs and most of those were temporary jobs with the Census Bureau.
Do reader’s grasp that the creation of a gubment job is sorta like masturbation? As government does not create wealth, the only enriching is to the individual employee(s) who got the job. But at what price? If the average gubment worker makes $50K annually, how does that work out in terms of economies, spending and wealth generation?
If 400,000 gunment jobs were created at $50K annually, that works out to how much for their gross pay? 400K times $50K equals $20 Billion dollars in gross pay. But since gubment should not just print money, the money to pay these employees must come from tax revenue, right? Do reader’s grasp that for gubment to acquire that $20 Billion to pay the new employees there has to be an extra $20 Billion collected in taxes to pay the employees without adding to debt and deficit?
For gubment to collect $20 Billion in additional taxes there needs to be at least $100 Billion in NEW private sector job creation to generate that $20 Billion gubment needs, and that is assuming the $50K each of the new 400K gubment employees is their total compensation, benefits and all. That means for gubment to cover the expense of paying the 400K new gubment workers there needs to be 1,600,000 NEW private sector jobs!!!!
That’s right – TWO MILLION new jobs total. As the new gubment employees will pay Federal income taxes too, the 400K of them added to the 1.6 million jobs in the private sector equals the 2 Million new taxpayers to cover the expense of gubment growing their rolls by 400K. So clearly 1.6 Million new private sector jobs are needed to go along with the 400K gubment jobs to keep the debt and deficits form growing, and to generate the money to pay all these new gubment employees.
See how this is the dictionary definition of “false economy?” And that’s why the market’s plunged yesterday. As well it need be remembered that as most folks federal tax bite is less than 20% of their gross, it would take between 5 and perhaps EIGHT TIMES that amount of private sector job creation to cover all the things each individual taxpayer’s contributions pay for – defense, education, infrastructure, welfare and the thousands of other gubment boondoggles they rape we citizens for.
I know this can be complicated and convoluted. For every single government job that pays, for the sake of argument, $50K in total compensation and benefits, it takes between 6 and 8 private sector jobs at $50K to pay for the gubment employee’s GROSS salary. Add in all the other things our taxes go for that gubment spends money on and it is really way more than 6 to 8 private sector jobs to cover the payroll expense of one single new gubment employee. Likely that number is between 5 and 8 times higher, so in reality it may take 50 new private sector jobs at $50K to cover all the normal things our payroll taxes goes for AND to fully fund the ONE NEW employee fully without going into a single penny of deficit spending.
Gubment creating jobs within gubment is not real in terms of it’s benefit. Only the one employee gains personally in any financial manner.
The reality of this economic situation is why the market plunged yesterday. Government only redistributes wealth – IT DOES NOT GENERATE IT!!!!! Redistribution is not generation by any stretch of the facts. When someone touts new gubment jobs as creating a job, you are being snowed. Clearly Wall Street and worldwide markets don’t care too awfully much for snow jobs, now do they?
But why do I have the sneaking suspicion the White House and Pelosi led Congress will differ with me on this? Because they are working their foul backsides off trying to install their ideological desires. When we examine the climate of the Obama economy we find private business, unless it’s a green one of course, is almost daily defamed as evil, selfish and will destroy America if they can, and all for the mighty dollar? That’s such BS.
People who own businesses are some of the smartest folks going. See it’s way different to actually run a business successfully than it is to be a college professor. Having done the one and aspired to the other, I know of what I speak. Academic theory is one thing. Speechifying is another. Actually doing the job successfully instead of flapping one’s liberal gums bemoaning the miseries of capitalism is very different.
The economic theories of progressives are not anything that passes for actual proven over time, real economics. Therefore unless Obama is really an idiot, and that is possible although I doubt it, he knows EXACTLY what he’s doing, what the real truth is, and where he is headed with his Obamanomics. I mean, how many jobs in the Gulf region are tied to oil? Maybe 100K of them? Good plan to shut down all that to make it all worse for everyone, as well as adding to the unemployment rolls, all the while China and many other unfriendly nations are drilling the Gulf oil. Amazing! Anyone who thinks Obama is doing right economically is a partisan or damned naive.
One may disagree with my opinions, but the math presented herein is above reproach. For every new gubment employee who earns $50K, it takes about 40 or 50 private sector jobs at the same 50K gross salary to cover the salary of the employee as well as all the other things gubment taxes pay for – schools, roads, defense and all the rest. Get it?
Obamanomics is to successful capitalism what a chastity belt is to procreation – a cock block from Hell. Y’all feelin’ me?