Friday, September 16, 2011

Guest Post by Nathan

Let's keep our money in the economy, not flush it down a green drain!



This Hot Air post, "Green-jobs subsidies created 1 job for every $5.44 million spent" highlights the recurring fact that so-called Green Jobs are a big loser, and cost far more than they create in terms of employment.

According to the Washington Post, President Obama promised 65,000 jobs from the $38.6B loan guarantee. The guarantee has created just 3,545 "new, permanent jobs" after about half of the money has been spent. How much of it will ever be repaid, and is it a good investment (risk) of our tax dollars?

According to Princeton University economics professor and former Federal Reserve vice chairman Alan Blinder, “There are good reasons to create green jobs, but they have more to do with green than with jobs.” Well said.

Real, productive, jobs actually generate money, they don't COST money. The private sector creates those "real" jobs via investment in products, services, and people which will be productive and generate a return. That's because the products and services are proven in the marketplace, and consumers are willing to buy them. For you government types, investments are "subsidies" with an expected return on that "subsidy." Investors won't put their money into unproven technology or ideas without a decent chance that they will get a return, that's why so-called "Green Energy" has always had to be subsidized.

So why aren't jobs being created in the US? Too risky and costs are too high. If the President, and lawmakers were to reduce the artificial costs (via taxes) of investment, and remove the burdens (costs) on the means of production by regulations, then investors will take risks, and jobs will result! Amazing!

How hard is this to understand? If I were to tell you that you will be taxed 50% every day, but only 20% Friday, what would you do? Most of us would work 16-24 hours on Friday, and look forward to having more income. Friday economic activity would probably equal all the other days combined.

(You can read Nathan daily at TDA Training)

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