Government “Investments” for Economic Growth?

  

           

This is seldom taught in high school, or for that matter, college: There is a major difference between a dollar “invested” by government and a dollar invested by private industry.

           

State-control politicians believe that it’s better if government makes the decision to spend. Or as the administration says, “invest,” as opposed to private enterprise doing the function.

           

The government allocation is made by a political decision. That is often subject to pressures which have nothing to do with supply and demand. Rationing and corruption that’s bound to follow. Privately imposed decision is, however, more likely to conform what the public wants.

           

Moreover, private industry investment has a multiplier effect, while government spending does not. Government jobs have no leverage impact on the economy. Their purpose often has political, social and environmental intentions.

           

Governments do not innovate and create new companies and multiples of jobs. Nor do they enervate the needed psychology of a booming economy. Psychological effect is most important. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

           

College Costs Outpace Inflation

                       

Why should college costs have doubled, compared, as one example, to what is considered expensive health care? At least health care has vastly improved over the years, while education quality has stagnated.

                       

In fact, it’s estimated that going-to-college, despite its futile results, has seen its costs far, far outpace what the average graduate earns. Moreover, too many grads work at jobs for which they need mere high school education. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at twitter.)

Non-Profit Companies Are Better?

   

                       

Government-operation proponents are always enthusiastic about non-profit business. They rant against profit-makers.

                                           

The so-called non-profits can lose fortunes for their backers, while the for-profits can make pennies-on-the-dollar of sales. Yet, the government-operation fanatics remain committed to left-wing perception and deception.

                       

Furthermore: It is impossible for private business to compete for long, whether it be the insurance business, health care, energy production, whatever, if opposed by taxpayer funds, grabbed by government for capital and operating capital needs. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

Poor Fed Policy Also Hurts Small Investors

                       

Ordinary Main Street savers, who normally are seeking havens for their funds, have been cheated by Federal Reserve policies over the past few years.

                       

Investors see how little they can earn on their money, if risk avoidance is their concern. It’s the Fed that’s primarily responsible.

                       

And the Fed will continue with the mistaken notion and policy which, in effect, is inflating the currency while attempting to stimulate the economy. It will not work before complete financial disaster.

                       

A debacle is inevitable because such Fed policy also scares business folks and deters lenders from normal activities that foster the economy the Fed overlooks with its monetary maneuvers.

(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)

The Climate Can Pay Off

                       

Since the heat waves of any summer usually  replace the dire hardships experienced in severe winter, climate control is bound to always get media attention.

                   

                       

As a result, there are adherents who treat climate control as a religion and have no doubt the earth is warming.

                       

To others it’s a political cause that creates a road to office and helps to keep them there.

                       

To still others in government, it’s a subterfuge for quietly and indirectly raising

                       

taxes on consumers, as well as industry.

                       

And for others, it’s business in which you can buy and sell so-called cap and trade credits.

                       

They market a green philosophy in a variety of industrial and consumer products that you choose to develop for profit.

                       

Eventually the now-gullible public will find out the climate promoters can be grouped with the types who used to tell us the world would come to an end by a certain date. When that never occurred we just forgot about the quacks. (See the Earl J Weinreb NewsHole® comments and @BusinessNewshole tweets.)

The Dollar's Use as a Reserve Currency

                       

The potential loss of the dollar as a reserve international currency is now underway. The ability to protect U.S. global interests in the future will be diminished in this process.

                       

Do not treat unlimited government spending lightly. The repercussions can be extremely serious in matters of our economic and national security. We're in trouble if other countries no longer convert their currency into dollars.

                       

The debt ceiling question is important. Spending below that ceiling resolves the problem.

                       

A budget deficit that cannot be overcome without massive taxation, guaranteed to stifle economic growth to prevent deficit reduction is the major difficulty. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Government Business Inefficiency

                       

Whenever the government proposes a function that is now done by private industry, the taxpayer will be contributing the necessary capital and operating funds. And will be planting all the risks on the stockholders of private industry. As well as responsibility for the losses, which are bound to happen under government operations.

                       

Think Post Office as an example.

                       

So be careful of any government attempt to reduce costs by competing with private enterprise. (See the Earl J Weinreb NewsHole® comments and

@BusinessNewshole tweets.)