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“Without you, I’m nothing.” A version of the latter is frequently uttered by movie stars and athletes to their fans. Absent the individuals who buy tickets to their games and movies, or who watch them on TV, these celebrities would be largely unknown. And they would earn very little money by extension. Celebrities of the film, television and sports variety, along with businesses more broadly, well understand that consumers conduct a daily vote with the fruits of their labor. Without them, they’re nothing in the figurative sense.
What’s obvious to those who’ve won customers in the competitive markets is frequently glossed over by government workers shielded from market signals. If anyone doubts this, try walking in to a Post Office to speedily get a passport, or asking a government agency for help, or calling any agency in search of a quick answer. It’s a statement of the obvious that “government services” is an oxymoron.
All of the above is interesting given the basic truth that there are no government workers earning actual salaries absent private sector production. For one to say that government work is a direct effect of private sector wealth creation is to waste words so obvious is it. While big government and government spending don’t power economic growth, they’re certainly the result of it. The dollars don’t fall from the sky despite what some believe.
This is a reminder that government jobs come at the expense of private sector earnings. That the federal government costs $4 trillion per year means that Americans (and realistically, people around the world…think about it) in the private sector earn less. Government is a cost that limits savings and investment. If the federal government cost $400 billion per year instead, Americans would earn more. Probably a lot more since investment would surge. Figure that successful investments multiply wealth and productivity. Bastiat’s unseen when it comes to government spending is sick inducing. Suffice it to say, absent all this waste over the decades it’s not unreasonable to suggest that cancer would have already been cured, that WiFi and Netflix would be as yesterday as the payphone and Blockbuster are now, plus private flight would be kind of common. Government spending is the biggest tax of all for it shrinking the experimentation without which there is no progress.”
READ MORE: www.realclearmarkets.com/articles/2018/09/05/trumps_federal_pay_freeze_will_mean_a_raise_for_the_rest_of_us_103406.html