Private Sector Does Not Create Jobs

In Free Democracy

To the Editor:

What wannabe world improvers like President Obama and other politicians fail to recognize is that the “state” by its very nature cannot simply create jobs in the “Private” sector in a free democracy. Consider…what jobs would they create…dentists, carpenters, grocers…what would they pay? Who would be their customers…if there was no demand?

President Obama wants to appear to be doing something…the question: will it fail like his previous nine plans?

*There was Tarp 1 and Tarp 2, bailing out the autos and the banks.

*Then he put forth an $825 billion stimulus and jobs package.

*Cash for clunkers.

*The home buyer’s credit plan.

*Record deficit spending for 2 years and 9 months and continuing.

*Five versions of foreclosure relief.

*Numerous cash life lines to Fannie Mae and Freddy Mac.

*Financial regulations that failed to regulate derivatives or limit them as a percentage of banks’ assets.

*Obama-care that 70 percent did not want, with $400 billion of in-bedded taxes, including a 3.8 percent federal tax on house sales and $500 billion in cuts to state Medicare funds.

The results are contraction in manufacturing in July and August with no new jobs in August. New unemployment numbers over 410,000 monthly for the last four months. Does this merit further spending…when most of the aid goes to state governments?

But lest any think President Obama has an answer…consider the following questions:

1. If people could borrow their way to success, then why were subprime loans risky, and why did they fail in such large percentages (over 55 percent failed)?

2. If countries could borrow their way to success, then why are Greece, Portugal, Italy and Spain in dire financial circumstances?

3. If countries could print their way to success, then Germany in 1936 would have been a success, but a suitcase full of money would not buy even dinner, and they elected Hitler with his “Hope and Change” as a savior of last resort?

The answers to these three questions which are known in factual history, in addition to Obama’s other failed plans, give good reason to doubt.

Daniel Kormanik

85 Great Ring Road, Sandy Hook                         September 9, 2011