| President Obama continues to prove to enlightened | | | | the income from one job, they must either work a |
| observers that he knows almost nothing about | | | | second job, cut their expenses or become educated |
| economics. So far, if there are two choices from | | | | or trained to qualify for a higher paying job. |
| which to choose, he and his Administration choose | | | | Mr. Obama stated in his first Presidential press |
| the one that causes the most destruction for | | | | conference that he wants to create 4 million jobs |
| America. | | | | with his stimulus package of almost $800 BILLION |
| Let's review Economics 101 for a brief moment. | | | | DOLLARS. Obama and his staff have determined that |
| An individual or group of individuals studies the | | | | there is a demand for JOBS. But if a job is a labor |
| marketplace and decides that there is a demand for | | | | cost of product or service, what product or service |
| a certain product or service. He or they set about | | | | is going to be created? And who decided? |
| meeting that demand by creating that product or | | | | Further, it will take months and months for this |
| service. | | | | "stimulus" money to trickle down into the economy. |
| A product or service consists of four basic | | | | Have you ever tried to get a Federal or State |
| components; materials, labor, overhead and profit, | | | | contract to do work? Takes forever for them to |
| defined below: | | | | move. Many road projects are planned years ahead |
| Materials are the raw goods used in a product. Think | | | | of time. Also, a road contractor doesn't just hire |
| iron or plastic or paper or ideas. | | | | warm bodies to work a paving crew. There has to |
| Labor is the cost of changing the raw goods into a | | | | be skill on the part of the worker. |
| finished product. Humans trade their time and ability | | | | The only way that the Federal government can |
| as labor in exchange for a wage, an agreed-upon | | | | create jobs is to hire large groups of people to do |
| amount of money directly connected to the amount | | | | menial tasks that require almost no training. Now, is |
| of time worked. The process of trading time for | | | | the government going to hire them through a union, |
| dollars is sometimes called a job. Jobs are usually | | | | or are they going to be non-union? Who will set their |
| considered in the context of being hired by an | | | | labor rates? Who will make job descriptions? Who will |
| employer to provide the labor component of the | | | | manage the workers? |
| product. | | | | Then, in the end of all this casting about on the part |
| Overhead is the cost incurred by the business owner | | | | of Congress and the new President, what will happen |
| producer, which often includes rent, utilities, taxes | | | | when the government stops spending this |
| and management wages. | | | | counterfeit money? They created a false demand, |
| Profit is the making of gain in business activity for | | | | and the demand will vanish when the checkbook |
| the benefit of the owners of the business. This is | | | | closes. So, the economy will crash again, and all those |
| customarily the amount of money retained by the | | | | stimulus-paid workers will once again be unemployed. |
| business over and above all costs to produce the | | | | Ladies and gentlemen, government cannot create |
| product or service. | | | | anything. It is the leech and the individual citizen is the |
| OK...are we clear? A "job" is only a component of | | | | host. Government relies on armed force to take |
| labor cost. It is not an end, but only the means to an | | | | from one person and give to another. |
| end. If a person cannot pay all of their expenses with | | | | |