Public versus private sector jobs is being addressed by the Center for Money Making Ideas because growing the public sector (government) is often at the expense of private sector entrepreneurs trying to advance their money making ideas.
In a political environment of liberal vs. conservative; democrat vs. republican; left vs. right we get public versus private sector jobs. We get employment in the public sector, growing at the expense of private sector jobs. We get a Political Party strategically empowering itself by growing the Government, at the expense of the private sector economy.
The private sector is; "the area of the nation's economy under private rather than governmental control." (Dictionary.com)
The "private sector's" demand for goods and services fuels the private sector economy. Demand for goods and services depend on the consumer's needs and wants and their willingness and ability to buy goods and services.
The buying public is the consumer. Businesses are the suppliers. There is a synergistic relationship between the consumer and the supplier.
Businesses respond to the demand of needed and wanted goods and services of the consumer. Businesses' direct employer is the consumer that buys their goods or services.
When goods and services are exchanged in the market place for money; the money is used to buy more raw materials and pay for future production costs including labor (jobs) to produce more goods and services.
The creation of economic growth in the private sector is funded and perpetuated by supplying the goods and services needed and wanted by the consumer.
As long as businesses can earn money by producing the goods and services that are needed and wanted by the consumer, businesses can provide job opportunities, earn money and collect taxes for the government (public sector).
The government, "public sector", collects money only when the "private sector entrepreneur" can supply needed and wanted goods or services at prices the consumer is willing and able to pay.
Public versus Private Sector Jobs
Posted By: stvnthn4
The public sector is "the area of the nation's affairs under governmental rather than private control." (Dictionary.com)
The "public sector" (civil service) jobs are not self-funded. Government relies on taking money out of the private sector economy to pay for public sector jobs. The Government uses private sector tax dollars to fund government bureaucracies; i.e. public versus private sector jobs. Government bureaucracies are an expense on the private sector. The bigger government gets the more expensive it is for the private sector to fund.
Most people would agree that government services are needed. What people may disagree on is the size of government necessary. Some will argue that we should have a very limited government. Others cannot grow the government big enough, fast enough. What should be understood is, there needs to be a balance between the size of the public sector (government) and the private sector that has to pay for these costs.
Most government agencies try to survive within their budget. Many agencies operate their budgets in the "red". After expanding the government and its costs, government turns to the private sector for more, and more and more funding.
Bigger government means more costs to the private sector economy. As government grows, so does the cost of funding it; i.e. public versus private sector jobs.
Government was intended to be of the people, by the people and for the people. The roles are now reversed. Instead of the people telling the government how they would like to be governed; government has taken it upon itself to tell the people how they will be ruled. Government now takes it upon itself to increase wages and create new agencies that are not at the will of the people at the expense of people in the private sector.
Government (public sector) is reluctant to reign in its own spending in good times or bad. The path of least resistance is to return to the private sector again and again for more private sector funding.
Government bureaucracies once created have their livelihood interests to fight for once established. Strong politically connected unions fight for the expansion of more government. Strong politically connected unions fight for the expansion of more government, to collect more union dues, to contribute to the politician's campaigns that advocate for bigger government and more government union jobs; i.e. public versus private sector.
Government had nothing to do with the creation of the wealth it takes from the private sector. Government seeks to levy fees on the private sector wherever and whenever it can get away with it. Isn't it amazing to hear public sector politicians point to the private sector producers and accuse them of being greedy?
Posted By: The ACU
The private sector community can only afford to support a limited public sector bureaucracy. When the expense of supporting the public sector is too great, the private sector economy suffers and there is less money that can be collected for the government.
What money that exists in the private sector economy is resources that the consumer and producers use to perpetuate the free flow of goods and services. When resources are taken out of the private sector economy, there is less economic resources left to perpetuate the free flow of goods and services and the jobs they create; i.e. public versus private sector jobs. Ironically, when there is less goods and services being exchanged for money, there is less tax revenue being generated for the government.
When you raise taxes on individuals or businesses, you reduce the means available to purchase goods and services. When you reduce the means to purchase goods and services, you reduce the resources to buy or produce goods or services. When you reduce the means to purchase goods and services, you reduce the demand for goods and services. When you reduce the demand for goods and services, you reduce job opportunities. When you reduce job opportunities, there is less money in the hands of the consumer. There is less goods and services being bought. There is less money being collected for the public sector (government).
A business friendly environment means having a business environment where restrictive government regulations are minimal, tax rates are minimal and labor costs are competitive. In a business friendly environment, businesses can create goods and services at prices the consumer is willing and able to buy.
At the right price, goods and services are in high demand. The rapid rate of exchange of goods and services for money generates a good steady flow of revenue for the government. In other words, the more often money is turned around from goods and services to money to goods and services to money again, the more money government collects in tax revenues.
The rapid rate of exchange of goods and services for money creates more and more job opportunities. More job opportunities translates to more money in the pockets of the consumer. More money available to the consumer translates to more demand for goods and services, which translates into more taxes collected for the government.
The rapid rate of exchange of goods and services for money means that businesses can earn a good profit (incentive) on volume, keep prices low, foster demand, create jobs, create wealth and generate taxes for the government.
When an economy is booming everyone has more job opportunities.
In a booming economy, the government collects more taxes for schools, police, fire fighters and other government agencies.
In a booming economy that has plenty of job opportunities, there is less need for a welfare state. In a booming economy that has plenty of job opportunities, there are fewer financially desperate individuals that feel they need to resort to crime. In a booming economy that has plenty of job opportunities, there is less stress and people are happier, friendlier, and healthier and need less medical care. In a booming economy that has plenty of job opportunities, there would be less homeless people, fewer people losing their homes and less need for government.
Unfortunately big Government advocates need a voting constituency that relies on some form of government subsidies. These big Government political activists have a vested interest in creating a culture of government dependency at the expense of private sector jobs; i.e. public versus private sector jobs.
What should be the priority of any economic recovery plan? The public sector expansion or the private sector job recovery?
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