Tuesday, July 19, 2005

Does the State create jobs or problems?

Many, including the followers of the economics of John Maynard Keynes, think the State can "create jobs" and "get the wheels of the economy started". The principle is simple: The State borrows (or prints) money in huge quantities and spends it. As a result som individuals will get jobs doing something, get paid for it, spend the salary on something and thus create jobs for someone else, who in return spends the money, and so the ball rolls on creating lots of jobs and happiness.

We now know this is not the case. Keynesian economics are simply outdated by logic and experience, and haven't had a positive effect on any economic recession at any time.

The government "pump-priming" myth and other Keynesian myths became widespread through Paul A. Samuelson's introductory economics textbook Economics, which was introduced to college students in 1948. While the economics profession has long since abandoned much of Keynesianism, Samuelson's textbook has not been replaced with a more suitable one, leaving two generations of college freshmen (including today's lawmakers and reporters) exposed to outdated 1940s economics. (#)

What the State spends, you don't. What the State "invests" in, you don't. What the State borrows or buys, you pay. You can't choose tax away unless you break laws or don't work. You can protest public spending with one vote every four years. You can protest private spending (for example, your supermarket's lates price-increase) every single day.

...and since all this "money-talk" is problaby uninteresting to the Leftist-reader who is probably on welfare himself, I think it's in order to remind the reader that a persons property is a persons extension of the persons self-ownership. In other words, a persons property is his because a persons body - and the fruits of its labour - is his.

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