The other day I saw a truck leaving our factory. The thought flashed through my mind that the truck driver’s opportunity to have a job was in part due to the existence of Walker Manufacturing. A further thought was that the Walker operation creates many more jobs than just the 150 employees working under our roof. While economics is a complex subject, and I would not pretend to know all of the workings of an economic engine in creating jobs, it seems pretty clear that businesses like Walker do create jobs and opportunities that boost the economy and raise the standard of living for our citizens. At least it looks that way to me, a farm boy from Kansas.
In this season of politics, and the need for more jobs in our country, the politicians are wringing their hands to find ways to create more jobs. There are two ways to create jobs: the public sector (government) and the private-sector (private business). Some government leaders seem to think the best way to create jobs is in the public sector. But do government-created jobs offer the same economic opportunity as private enterprise? I think not.
First of all, public-sector jobs are funded by taxpayers where money is taken from one pocket (borrowed) and given to another pocket; no real multiplication or incentives are found here. By contrast, private-sector jobs are created by offering goods and services on the “free” market where consumers are able to pick the best value and will pay a profit (not a dirty word) to the business. Profit attracts capital (capitalism) to be invested because of the incentive for growth and return on investment. Also, competition in the free market raises the proposition that offering the best products and services and working harder will present even more opportunities in private business. The bottom line is that with a relatively small investment to start a private business, with lots of hard work and with God’s help, multiplication takes place and thousands of jobs are created. Incidentally, I believe God ordained business in the beginning when He told the first people to subdue the earth to multiply and to be the master over creation.
Talking about multiplication in private business brings up a second point. Private business creates wealth while the government enterprises do not. Wealth creation is good and is the fuel of the economic engine of private enterprise. It should be remembered that wealth creation comes from business, and that wealthy people create jobs; poor people don’t. I am more than a little tired of being told by our current government leaders that wealthy people are not “paying their fair share” and “need to pay more”. I believe these leaders are out of touch and do not understand the connection between wealth creation and job creation in private business.
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