Tuesday, May 11, 2010

Goverment Does Not Produce Income

What the government does is impose taxes. Government workers do not create income by offering a product or service. The latter exception may only apply when you consider license, business, and similar fees to conduct business within a municipality.

When government grows, the burden to pay for its labor is placed upon tax payers. If tax payers are unemployed, no taxes are derived to help pay the wages of government workers. So, why increase government worker payrolls when there is not enough revenue from non-government workers to support the government's payrolls?

It is a shame that no one with any clout in government steps forward to warn and effect a change in the direction of the government's efforts to hire more government workers when the mechanism does not exist to support government payrolls.

Unless and until those charged with government oversight realize that the private sector should be given the green light to grow the economy with minimal taxation to create jobs and increase productivity, government can never provide all of the benefits that it wishes to confer upon its subjects as entitlements. Suppress income creation and you decrease the government's ability to collect and provide sustained monetary support for the government entitlements.

No comments: