What the Government Can’t Do
The government passed a $700-billion Troubled Assets Relief Program designed to rescue teetering financial institutions, a $787-billion stimulus bill, and $410-billion in additional spending on top of that. There doesn’t appear to be any slowing down of government spending.
Here's a fact that you should consider – the election demonstrated that over half of the voters believed that this type of government would be the solution. This is setting America up for more reliance on the government and less on capitalism as a way to solve our problems.
These massive bailout and economic stimulus programs aren’t the best solution. What the majority of voters have failed to recognize is that the government can’t give to any person without taking away from someone else. There is no free lunch and socialism doesn’t work.
Evidence shows that a dollar spent by the federal government will generate about 50 cents to $1.50 of new economic activity. But a dollar invested by the private sector (you and I as businessowners) generates $5-$8 of new economic activity and growth. The government by itself never creates a dollar of wealth. It is the private sector that builds wealth.
What the government can’t do is tax, spend, and transfer wealth as a means to pull us out of our financial mess. Only private sector investment is capable of changing our financial situation. So, my hat goes off to the private sector that is willing to open a new business, release a new product to market, expand capacity, or invest in their business because that is where wealth is built and that is what will ultimately make a difference in our economy.
Here's a fact that you should consider – the election demonstrated that over half of the voters believed that this type of government would be the solution. This is setting America up for more reliance on the government and less on capitalism as a way to solve our problems.
These massive bailout and economic stimulus programs aren’t the best solution. What the majority of voters have failed to recognize is that the government can’t give to any person without taking away from someone else. There is no free lunch and socialism doesn’t work.
Evidence shows that a dollar spent by the federal government will generate about 50 cents to $1.50 of new economic activity. But a dollar invested by the private sector (you and I as businessowners) generates $5-$8 of new economic activity and growth. The government by itself never creates a dollar of wealth. It is the private sector that builds wealth.
What the government can’t do is tax, spend, and transfer wealth as a means to pull us out of our financial mess. Only private sector investment is capable of changing our financial situation. So, my hat goes off to the private sector that is willing to open a new business, release a new product to market, expand capacity, or invest in their business because that is where wealth is built and that is what will ultimately make a difference in our economy.

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