My favorite definition of economics is: "The study of the allocation of scarce resources"
Sounds simple enough but it identifies two critical issues:
1) Resources are scarce
2) How resources are allocated (and utilized) is important -- critically important
Jobs are created when resources (capital) are applied to productive activity (including both making stuff of value and providing services that help people make stuff of value). Presently, economic activity in the US totals about $16 trillion annually. Of this activity, government at all levels accounts for about $6 trillion. The great majority of this government activity consists of non-productive, administrative-type stuff and massive amounts of transfer payments taken form some citizens and given to others.
The 6$ trillion spent by government was removed (reallocated) from the productive, job-creating sector of the economy. If we want more jobs, we must elect candidates that will fight to radically decrease the size of government and return (reallocate) a large portion of the scarce resources confiscated by government back to the productive sector--back to those who earned it in the first place--so they can invest it in additional productive, job-creating activity (which they will do if given the chance).
In my next post I'll talk about why government and consumer spending can't get us where we all want to go.
God Bless,
DWD
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