About This Blog

Ludwig von Mises (1881-1973) was the greatest economist of my time. His greatest works can be accessed here at no charge.

Mises believed that property, freedom and peace are and should be the hallmarks of a satisfying and prosperous society. I agree. Mises proved beyond a shadow of a doubt that the prospect for general and individual prosperity is maximized, indeed, is only possible, if the principle of private property reigns supreme. What's yours is yours. What's mine is mine. When the line between yours and mine is smudged, the door to conflict opens. Without freedom (individual liberty of action) the principle of private property is neutered and the free market, which is the child of property and freedom and the mother of prosperity and satisfaction, cannot exist. Peace is the goal of a prosperous and satisfying society of free individuals, not peace which is purchased by submission to the enemies of property and freedom, but peace which results from the unyielding defense of these principles against all who challenge them.

In this blog I measure American society against the metrics of property, freedom and peace.

Tuesday, January 10, 2012

Profits Create Jobs; Bureaucrats Destroy Them

Politicians are the only individuals who spend money with the specific purpose of creating jobs. No entrepreneur I know -- myself included -- ever invested a dime with the sole purpose in mind of creating jobs.

Believe it or not, jobs are created by accident by entrepreneurs whose primary purpose is to earn profits or to successfully embellish a personal passion. As a business becomes successful, profits allow the business to
grow, and with growth comes job creation, not for the purpose of job creation per se, but for the purpose of increasing profits and growing the outlet for a personal passion, i.e., achieving more success.

This truth is the reason why resources taken by taxation out of the free market and handed over to the political bureaucracy will destroy jobs, not create them. The more free the entrepreneur, the more resources left in the hands of individuals in the free market, the more profits entrepreneurs will earn. Net job creation will be the happy consequence.

Entrepreneurs cannot succeed unless they satisfy consumer demand. Those entrepreneurs who best satisfy consumer demand in the free marketplace make the most profit, are best able to expand their business and create the most jobs. Thus, satisfying consumer demand is the most effective and efficient means by which jobs are created.

Bureaucrats are not dependent upon satisfying consumer demand in the free marketplace. Thus, they cannot expand their program by means of profit. Job creation is and must be static.

The bottom line is that resources left in the hands of individuals in the private market are dynamic and prolific profit makers and job creators. Resources taken by taxation from individuals in the private market and given to bureaucrats necessarily result in no profits made and a net loss of jobs.  

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