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Archive for August 1st, 2009


Let’s for a moment put party labels aside.  The Republicans, Libertarians, independents, and the Democrats are no more, for the sake of this post.   Let’s look at politicians and advocates only as proponents of public sector or the private sector.

The proponents of public sector support the government’s caretaking of its people, either through public or co-op option medical care, providing money for car purchases, subsidizing power generation, and so on and so on—spending everywhere.

The private sector proponents seek growth of industry and economies, healthier paychecks for all, faith based options for caretaking, and wealth generation for reinvestment into greater wealth generation for all.

The public sector advocates want to spend resources on all sorts of programs but struggle with how to pay for the largess.  Remember the public sector produces nothing.  It is simply a drain on the economy and cannot be sustained.  Taxing the rich and businesses will generate funds for near term projects, but over time the law of diminishing returns kicks in and the cupboard runs bare.  There is a limit to how much money can be pulled out of an economy to pay for public sector programs—the limit is what gets put back into the economy to replace what was spent.  Remember as you grow the public sector you shrink the private sector.  Soon the private sector will disappear and the public sector will have to provide less and less for the populace—rationing.

Remember the empty store shelves in the Soviet Union?  Well this will happen here if the production economy does not grow.  Unless we find a way to grow our economy we will not survive.  This country has been a consumer and not a production economy for nearly 40 years.  All this has done is deplete our reserves, build debt, make the dollar weaker, and make us unable to replenish what we are spending—we simply consume.  As a nation will will run out of whatever wealth we have left.

Just look at how the government has reacted to the current fiscal crisis.  It was brought on by debt.  Now we are fixing the problem by growing the public sector and we are borrowing to get out of debt—does this make sense to anyone. We should have ignited the private sector by placing a moratorium of income taxes for two or three years—it would have cost the same as the unproductive stimulus, but it would have already begun paying big dividends.

 The private sector advocates want smaller government, with the government being a small drain on the results of the private sector economy.  If the private sector is supported by the government through lower taxes, less restrictive rules, use of natural resources that allow the private sector to produce, the economy will produce, export, grow jobs and this will feed on itself, as if it were a perpetual engine—okay I exaggerate a bit.

If this government fosters a strong small business segment and a somewhat controlled big business segment usually through competition, but with legitimate— not choking —government regulation, the private sector over the long term will grow, and provide prosperity.  Since the public sector produces nothing, and is a 100 % drain on resources, it can never produce prosperity, that is unless we can have a replay of the miracle of the loaves and the fishes .

There are those who say that profit is bad, well unless these anti-profit people can offer another way to grow and replenish an economy to continue to deliver these goods and services, private sector profit is the only way to go.  Remember, how long can government deliver these goods and services without replenishing what has been used?  Remember the Soviet Union store shelves. 

Now I make the leap to government medical care.  Forget about the lack of efficiency and effectiveness in anything the government does.  Let us simply look at the non-replenished resources from a stagnant public sector economy.  How much time will pass before medical rationing must occur in a service driven by an economy that does not grow—it only shrinks.

Anyone who has not as yet joined the flat earth society should seriously consider that when you vote for a representative, that representative should be a long term thinker and always vote to build and grow an economy by producing.  If the person is a short term thinker and only believes in picking the fruit from the tree without ever feeding or water it, then you will get the diminishing public sector option and everyone will be equally poor.

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