I recently saw this Business Insider article from a link at Foseti. The article is Nearly 40% Of Private Sector Job Growth In December Was Subsidized By The Government.
It’s not the first time I’ve heard that similar type of headline in recent months.
It’s of course a very interesting topic. Progressives would likely point to it as an example of government creating jobs and improving the economy.
Except does it really? It immediately brought to mind a story from my own life. My mother’s birthday happens to be December 25th. I can say that because of that, I have only ever bought her(as in with my own money, and not my dad buying something and letting me gift it) maybe 3 birthday presents in 26 years.
I don’t believe my mother feels short-changed, but the reality is that she doesn’t get any birthday presents from me because I’m strictly thinking Christmas at the time of shopping. Her birthday never even crosses my mind, to be honest I’m largely unaware that she even has a birthday.
Just what the hell does this have to do with economics? A lot actually. When the government spends money(and it spends a lot), it has to get that money from somewhere and it gets it from the private economy. Therefore any money spent by the government is money not spent by the market. “But it still gets spent”, the progressive says. Except it comes with the immense and inefficient government overhead as well as the horrible guidance of being a government program that is 99% guaranteed to be useless in the first place.
Considering that government spending has increased by about half a trillion dollars since 5 years ago and over a trillion since 10 years ago there better be a whole helluva lot of jobs being created. If not what is all that money going to?
Just because today is Christmas don’t think nothing can happen. Here are a few things that have happened on December 25 over the years.
- In 800 Charlemagne was crowned the first Holy Roman Emperor
- in 1066 William the Conqueror was crowned King of England
- 1776 George Washington crosses the Delaware river for a surprise Christmas attack on a Hessian force.
- President Andrew Johnson pardoned all those involved in the southern rebellion in 1868
- Russian invades Afghanistan in 1979
- 1991 Mikhail Gorbachev announces the dissolution of the Soviet Union
Have a Merry Christmas and if you don’t celebrate Christmas, have a nice day, there’s no need for you to be sour.