Wednesday, July 7, 2010
Jobs Creation: Public or Private Sector?
First, the US government is outsourcing our tax dollars by outsourcing formerly public sector roles to private companies so that they can efficiently get things done. Those companies tend to try to get as much worker productivity as they can, and hence aren't really increasing the labor force, unless the demand for their work increases. For example, private prisons can hire more people as guards, cooks, etc, if there are more people locked up. This is very backwards thinking. And of course, ultimately, these private companies are trying to earn money for their owners and shareholders. The fact that their revenue stream comes from the US government and goes to the investor class should raise alarm bells for anyone reading this.
Secondly, the US government could create agencies and "public corporations" invested by tax dollars to do the important work. Then our tax dollars would be going directly toward jobs creation and toward getting important things done--things that Adam Smith's invisible hand tends to wave past, until it's too late, or to deliver meager amounts to. Things like regulation, large-scale research projects, growing a commonwealth of resources like public parks, tree-planting, litter-reduction, economic welfare safety nets, and food banks. With the public taxpayers being the investors in this, the ROI shows up as benefits and security for us all, and the tax dollars can be efficiently used so that they go directly toward the equipment needed, and toward the people who are doing the work.
When more people are employed at fair wages, they will be able to spend more and grow the economy. When private corporations are making large profits for investors, in an unsteady economic environment, they will be hesitant to put their money back out there, and it will tend to pool (unless the government is willing to tax them heavily).
Regarding the US government revenue stream, consider this.... When oil companies are seeking to obtain energy/oil from the ground, they want to find the large underground pools. When the US government (with its power to levee taxes) needs to obtain energy/money, it should look for the large pools that have accumulated (in the investor class). Instead, it is still trying to squeeze oil out of the shale-rock of the middle class.
To jump-start the economy, the US needs to find major sources of money. There is ONLY ONE PLACE to find money like that, and it is in the abundance of wealth that has been siphoned off by the millionaires and billionaires in America. When Obama initially entered office, he said he was going to close the corporate loopholes, and tax-dodges for the rich. I wonder how effective he's been at that???
agape to all,