Wednesday, March 14, 2012

Government and Jobs

The Republicans are fond of claiming the government does not create jobs. They would like people to believe that only the private sector of the economy can create a job. Before dropping out of the race for the Republican Presidential nomination, Governor Rick Perry pointed out his “job creation” record claiming it was the best in the country. How do Republicans answer the claim that Perry, governor of Texas created jobs? (Of course, Governor Perry does not mention realistically, a sizable portion of jobs created in Texas have been the result of federal subsidies for farms, oil and natural gas. Disregarding the reality that the majority of Republicans making such a ridiculous statement are either presently employed by some branch of federal, state, or local government, and receiving their pay as a result of taxpayer funding; or they are seeking employment by a branch of federal, state, or local government. Most people would consider people like police, firemen, teachers, tax collectors, and other workers in federal, state, and local government to be employed and have jobs. Many former employees of federal, state, and local governments who were recently laid off would tell you that they lost jobs. Of course, there are the people who repair roads, bridges, build schools, convention centers, and athletic facilities all of which are paid for with tax payer funds all have jobs thanks to governments deciding to spend tax payer money. We must not forget the people on the receiving end of over $600 billion in defense spending by the federal government. It might be surprising to learn what percentage of $600 billion of federal defense spending pays wages to people with jobs. Continuing on this “government does not create jobs” theory, what do Republicans consider those people working for school districts? Do they have jobs? Do the people at colleges and universities that get financial support from government grants have jobs? Do the people working at state colleges, universities, community colleges, and technical schools have jobs? Republicans need to redefine their meaning of jobs. But, economic theory was never the strong side of Republicans. They still believe that cutting taxes results in increased tax revenue. In spite of the fact that from 2000 to 2009, tax revenue (individual and corporate combined) went from 12.3% of GDP to 7.5% of GDP, a drop of 39%. Republicans believe that cutting corporate taxes increases revenue in spite of a drop from 1.6% of GDP to 1.0% of GDP, a drop of 60%. Republicans believe they can win votes from women by blocking contraceptive prescription coverage. Republicans believe they can win elections by scaring voters. Perhaps there will be a day when Republicans will have realistic beliefs. At some time in the future there will be another President like Eisenhower, a Republican, who knew how to actually create jobs, grow the middle class, and enable the country to foster an environment where everybody had a chance to prosper.

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