Friday, February 5, 2010

The economy

I was going through the paperwork necessary for my tax guy to do our taxes last night. It stimulated my thoughts about our economy and the ridiculous things our government is doing to try and fix it. The folks in government have forgotten something. Our country needs to get more wealthy. And by wealth, I don't mean lining some individual's pockets, I mean the wealth of our nation. All the efforts to prop up the banks and save the insurance companies and so on do nothing to create wealth and therefore improve the economy with jobs and money. True wealth comes from only three sources:
1. Agriculture
2. Exploitation of Natural Resources
3. Added value in manufacturing

There is no wealth generated in the provision of services. There is no wealth generated by increasing the number of government agencies and jobs. There is no wealth generated by government health care. Only redistribution and recirculation of the same old money that was there before.

If our government is to help stimulate our economy and that of the world, they must create a situation for our farmers to grow and export food. Our natural resources must be (sensibly) exploited, such as oil and gas reserves and other minerals. Finally, we need to stimulate manufacturing. Work is being moved off shore because it costs less. Well, maybe we rethink that and work more efficiently, perhaps for less money, but smarter in terms of productivity, and get our factories to be competitive again in the world market. If we are going to spend stimulus money, let's do it to stimulate innovation and growth in manufacturing. Let's stop giving the financial shysters money directly from the government.

I think its time for the President, the administration, and congress to read Ayn Rand. I was going to say re-read, but I'm sure they have never read her. I'm not advocating everything she espouses in her books, but I am definitely against entitlement, which is what today's government programs are all about.