We didn't mean to be serious about JOBS, JOBS, JOBS.

Published on: 4/13/2011

It's not really Jobs.


I can now see what the prominent economic plan in this country is for getting out of the this recession. And I'm going to try to clarify if for all of us. Jobs is the not the ultimate goal. Jobs are costly both for business and for government. So the ”Job, Jobs, Jobs” declaration is merely political. .


The ultimate goal is to reduce spending of both types in the private sector and in the public sector. Let's start at the public level. There are two ways that governments can spend. One is by collecting taxes which become real revenue that then the government usually spends.


The other way, in addition to spending is revenue received by borrowing money that “the government does not have, to spend.” Borrowing would be fine, except that it is also a form of spending that has to be paid back. Besides borrowing, it additionally also creates a debt on which we have to pay interest.


What is needed is first of all a reduction in revenue spending and this takes two paths, one is to reduce the intake of revenue and the other is the elimination of programs on which that money would be spent. Tax reduction of course makes us all happy, except for the poor who are not affected by tax reductions.


Taxes bring in revenue so the reduction in taxes, if not tax elimination, most of it, paid by the wealthiest would reduce in-coming revenue and therefore spending. As the poor do not pay a lot of tax, if any, tax reduction is best for those who have the money. They can still sit higher on piles of it


As government is bad, it can be made less evil by less spending and borrowing. Beyond putting a ceiling on borrowing, so as to stop increasing the debt, we cannot accomplish much more during the remainder of the recession. Experience shows that recessions by being left alone, will cure themselves.


Now, reduction in business spending makes business more efficient and produces increased profits as reflected in the stock market, Wall Street. Reduction in the cost of employment and taxes, of course is the goal. Workers alone are no longer needed as in the Great Depression. Now we have robots.


If robots and fewer workers are not satisfactory, then business can be encouraged to relocate in those countries that work for less, for even less than the cost of robots. The ultimate objective for business is to make profit. Let's bathe in its sunshine. The capitalistic system takes care of itself, so not to bother.


Those of us who have money in the stock market, without doing any work will then magically receive dividends or even make more money if we effectively engage in the trading of stock.


Those who believe that jobs or workers are the solution are wrong. Jobs instead need to be eliminated both in government and business.  That's the plan.  So those without jobs should be in business instead.  Now is the time.


Perhaps, I've left something out.  I, of course have not been all that accurate perhaps as this is a difficult area to observe and analyze.   Please comment.