Government IS the Problem – Commentary by Frank Gillispie 6/20/11
President Obama had finally realized that government cannot solve the current jobs crisis. He is demanding that the private sector get busy and
start creating jobs. Well, he can't just demand jobs from the private sector. He has to get government out of the way so that they have a chance to
Look, the purpose of the economy is to create and distribute goods and services. In order to do that, business has to be able to provide goods and
services at a competitive price. As long as the cost of domestic production remains so high, business has no choice but to go outside the nation to
low cost societies to obtain merchandise to sell.
So what does a potential manufacturer run into when he tries to set up a business for the production and distribution of domestic goods and services?
His first challenge is to figure out how to deal with the massive, punishing tax programs. It cost any business a significant amount of their
available funds hiring accountants and advisors just to deal with taxes.
If the private sector is to create jobs, then the tax code must be greatly reduced and simplified. That includes eliminating all payroll taxes and
switching to some form of consumption tax so that imported goods pay the same taxes as domestic.
The same thing applies to government regulations. Any businessman will have to spend many dollars just to comply discover and comply with these often
senseless regulations. Businessmen are confronted with page after page of regulations, many of which make no sense other than giving government
bureaucrats something to do.
For example, our federal government has decided to get into the cigarette naming business. A recent ruling says that cigarette companies can no longer
call their products "Lite" or "Mild." As a result tobacco companies have had to spend huge amounts of money to redesign their packages, and
advertising. So if you are a smoker, and you want a milder flavor cigarette, you have to order it by color. Most full flavor brands are in red
packages. Mild or Lite flavors come in gold boxes, and ultra-lites are in pastel or white boxes. But none of them can call themselves "Lite."
If you go to a hardware store to buy a ladder, it will be covered by government mandated labels warning you of every obvious safety hazard involving
Then, of course, businessmen have to deal with government supported unions which also drive up prices.... For most companies, it is not practical to
produce goods in America. So they buy goods from China, Korea, or other unregulated and untaxed economies.
As President Reagan once said, "Government is not the solution to our problems. Government is the problem." And the problem has only gotten
Copyright © 2011 by Frank Gillispie
email@example.com, Hull, GA
"The traditional American philosophy teaches that decentralization of governmental power, to the maximum practicable extent, is essential to the
security of Man's God-given, unalienable rights." --Hamilton Abert Long, from
Principle #6: Decentralized Government
"I think we have more machinery of government than is necessary; too many parasites living on the labor of the industrious."
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