BACK TO FINANCIAL REALITY & PROSPERITY
By: Guest Authors
By: Kevin Ernst
There is much current debate in our country over who owes who, either through collective bargaining or entitlements. Wisconsin is now debating the needed self embraced question with its Teacherâ€™s Union; one manifestation of public sector â€œwantsâ€ with many more to come throughout our nation. I believe a rational look at â€œwhyâ€ is important. Unions were first organized primarily to fight against corporate greed which was fed at the expense of labor. If the union bargaining issue in Wisconsin relevant to teachers in education is about being treated fairly, who is treating them unfairly? They are protesting against State Governmentâ€™s stance to correct a financial imbalance, but are they not really protesting against the private sector that ultimately funds the public sector? Asking the government at either a State or Federal level to fund the needs of any public sector service is, at its root analysis, simply a demand for more dollars. Regardless of the intended use, or need attempted to justify the demand, the money still must come from somewhere. The government can either increase taxes and/or print the money. The private sector has voted against increasing taxes, which arguably diminishes private sector growth at a time when growth is sorely needed in all our States and Nation as a whole. Printing or borrowing the money will evade the current discontent, but will not avoid the reoccurrence. Printing excessive amounts of money and inducing it into the economy ultimately creates inflation, which in turn negates the dollarâ€™s value and thus helps exacerbate the need (separate from expansion concerns) for increased funding of the public sector in the future. Printing and infusing money into the economy does not create any lasting growth in the private sector which is what ultimately funds government.
If you work for the government at any level, you should support private sector growth. That is from where your wages are paid. The private sector is the economic strength of both our past and our future in the USA. The public sector of servants such as teachers, firemen, police and social workers serve an important function to help us maintain safety, peace, liberty and opportunities to pursue a measure of prosperity. If described as either servants or simply public employees, the reality of their compensation must be within the means of their employer. On the other hand, one cannot disagree that the sacrifices needed to bring our States and Federal expenses in balance with revenue seems to be shouldered on the backs of our middle class (including public servants) while certain other entities including Banks and Wall-Streeters continue to benefit at the expense of everyone else; no sacrifice, just more profits. My larger discontent does not lie with the current actions of protesting public servants, or even with the for-profit largest national banks; though both should reassess how much is enough. My fight is with our many imposed public regulatory agencies and those in charge of these agencies, which diminish liberty and impede our opportunities to pursue a measure of prosperity either privately, or corporately, or nationally. This is where the greater problem lies. This is the real underlying anti-stimulus which is continually stimulated through the governmentâ€™s infusion of money, and supported by â€˜ideologsâ€™ manipulating law in our courts. In addition to that current fact of life, we simply have too many public employees. The public sector has grown beyond its initial conception to serve, into excessive regulatory branches of government that now exist only to control. This is the danger when we fertilize with too much stimulus money. The result is not the private sector that grows, but government itself; and always at the expense of the private sector.
Government monetary stimulus does not create lasting jobs for the private sector, and it does not create wealth. It is wealth creation that stimulates the economy and creates lasting jobs. Real wealth creation comes from the extraction and development of natural resources. If a country has access to very few natural resources for its people, and little to develop and sell, it is typically poor. The key word here is access. Our nation has allowed a rational ideology of conservation to evolve into laws of protectionism now imposed by regulatory agencies, which have become the fourth and fifth branches of government; and which in addition are outside the citizenâ€™s control. If we are to create jobs in this nation, we need to extract and develop our resources. I propose we allow power to the States to do just that; to develop our National Resources at the State level of oversight. Individual States can adopt and enforce a Company Environmental and Social Code of Conduct (responsibilities) for companies to operate in their respective State. Rather than allowing Federal Agencies to impose their regulations in front of industry and States, which restricts our ability to even get started towards prosperity, allow the start-ups and then hold companies accountable for their actions; including owners, managers and investors. Easy liquidity through Wall Street should be replaced with longer term investment requirements. This will ensure investor oversight that companies act responsibly to protect investments as well as the environment and social aspects resulting from corporate operations. Owners and managers should not be allowed to protect and hide personal assets from any State code-of-conduct company violations. Radical?; maybe, but current Federal regulatory agencies cost the private sector (you and I) and the States a lot of dollars, while at the same time restrict us from creating any wealth. You want change; this is real change. Bring the power and responsibility for wealth creation back to the States and the private sector. The Federal government has proven its inefficiency, its inability and unworthiness of the responsibility to create the type of wealth and jobs that result in prosperity for our nation and its people. My final thought; our security and liberty are directly tied to our economic strength and prosperity needed to thwart those forces in the world and in this country which seek to destroy our American Heritage.