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Thomas Jefferson Quote

How can we expect impartial decision between the General government, of which they are themselves so eminent a part, and an individual State, from which they have nothing to fear? We have seen, too, that contrary to all correct example, they are in the habit of going out of the question before them, to throw an anchor ahead, and grapple further hold for future advances of power. They are then, in fact, the corps of sappers and miners, steadily working to undermine the independent rights of the States, and to consolidate all power in the hands of that government in which they have so important a freehold estate. But it is not by the consolidation, or concentration of powers, but by their distribution, that good government is effected.

ideas > Money and Government Jobs

Money and Government Jobs
I am a runner. As I run, my mind is often hit with thoughts that come out of nowhere. Today I had a great thought or moment that I want to share. I had just entered the University of Hawaii – Manoa through the back entrance, a small gate located in the back, when I saw what looked like a University of Hawaii employee walk to his car. It made me think of all the government employees that we have in Hawaii. I read recently that 20 percent of all workers in Hawaii work for either the local, state, or federal government. I was reminded that the government produces nothing which consumers can consume. Think about it. What does the government produce? Do they produce cars? No. Do they produce food? No. Do they produce electronics, TV, CD players, etc.? No. The government, among other things, plays a role in enforcing the law, educating our youth, etc. But the government produces nothing, other than money and then that is only the federal government’s responsibility. That means that the other 80 percent of the people must produce enough goods and services for themselves plus the other 20 percent, to make up for the fact that that 20 percent produces nothing that is consumed. It is clear that there comes a point when too many government employees, too many government programs, and too much government interference leads to a lower standard of living, as expressed by the amount of stuff that each household is able to buy. If too many people do not produce anything for others to consume, then a nation is poorer than if those people produced something. Today we have a situation where there are a lot of government employees, and then are a lot of people who use the programs that the government employees support. So not only do we have a large percentage of folks working for the government, but we have a large percentage of folks taking money from the government in the form of services, programs, etc. These people are not producing the equivalent of what they consuming. They are consuming other people’s production. The more people that work for the government and use government services means the poorer this country will become. This is because those who produce become less and less, while those who consume only grow larger and larger. This means that fewer products that people want will be produced, while the demand for those shrinking products will rise.

The danger in this situation is that those in government will promise solutions to the problem of the government getting poorer and poorer, as manifest by lowered production of goods and services that people want and need. The solutions will generally fall into two categories. First, the federal government will spend more money, by either borrowing money or printing money out of thin air. Either way, the net effect of this will be more money in people’s hands, but not more products. Second, the government will want to create more government jobs, but that will only exacerbate the problem, which is that there are not enough people working productive jobs that produce things that people want. The people will easily want these government solutions, because they want to believe that it will work. They fail to realize that the government is the problem. The government is very good and printing and redistributing paper money, but if a large percentage of the people are not producing anything because the government pays them not to or gives them an incentive not to be productive, then all that will happen is that people have a lot of money, but nothing of worth. They, in essence, have green toilet paper. I find it ironic that the people are too often focused on getting money at all costs, but they fail to realize that money has no worth. The only thing that has worth is the product or service that the money will bring you. If the government destroys the incentive for people to produce products and services that people want and need through high taxation, regulation, and government interference, then it will attempt to fix this by printing more money which will only exacerbate the problem and lead to a spiraling economic downturn characterized by a flood of money and an inability for people to purchase what they used to be able to purchase. The government will create inflation and poverty where purchasing power and wealth used to exist. Why do you think that there is so much inflation these days? The government is deficit spending, print money like crazy, putting more and more people on government payrolls, taxing business, over regulating which is leading to less and less goods and services being produced, but more and more money clamoring for those reduced amounts of goods and services. The only way to stop this is to reduce the government spending, taxation, oversight and regulation. More of the same will mean more poverty and suffering for Americans.

That is the thought that I had on my run today. I am grateful when those thoughts come, because they are crystal clear. Hopefully I was able to explain my thoughts on money and government intervention well enough for you to understand.
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