Ron Paul – Stimulating Our Way to Rock Bottom

Stimulating Our Way to Rock Bottom

With attention turning to the next big economic stimulus package, questions are still swirling about our economic troubles.  How did we get here?  How do we get out?  As usual, Washington has all the wrong answers.  According to many politicians, we got here by not spending enough, not consuming enough, and not regulating enough.  Now government, like some mythical white knight, is going to ride in to save the day by blanketing the economy with dollars, hiring an army of new bureaucrats, creating make-work jobs, and sending everyone some form of a bailout check.  The debate seems to focus on whether this will cost enough to save the economy, or if this is just a “down payment” with much more government spending to come.  Talk like that would be comical, if the results weren’t going to be so tragic.

The results will be worsening economic woes until we learn our lesson.  But instead Congress is behaving like drug addicts who must hit rock bottom before they are ready to face reality. They are playing foolish games with the economy now because they are thinking only of political expedience.  This talk of job creation is a perfect example.

Contrary to the belief of many, the goal of the economy is not job creation.  Jobs can be a sign of a healthy economy, as a high energy level can be a sign of a healthy body.  But just as unhealthy substances can artificially give the addict that burst of energy that has nothing to do with health, artificially created jobs just exacerbate our problems.  The goal of a healthy economy is productivity.  Jobs are a positive outcome of that.   A “job” could be to dig a hole one day, and fill it back up the next, or perhaps the equivalent at a desk.  This does no one any good.  But the value in that paycheck ultimately has to come from taxing someone productive.  Some think this round-robin type of economic model is supposed to get us somewhere.

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