Government Is Not Responsible for Prosperity

Government Is Not Responsible for Prosperity

( – The United States was built on the promise that we have the God-given right to pursue life, liberty, and happiness. Our prosperity is not dependent upon the government. The government only ensures that we are free to pursue our rights.

Democrats claim to be the party for the downtrodden and the middle class who keeps getting screwed. However, their policies contribute most to the decline in prosperity among those groups. While the government is not responsible for prosperity, it can hurt prosperity.

Pelosi Takes Credit for Massive 3rd Quarter GDP Growth

On Thursday, October 30, Speaker of the House Nancy Pelosi (D-CA) said the 33% economic growth in the 3rd quarter was because of the CARES Act, Payroll Protection Program (PPP), and other government money injected into the economy since March. She didn’t mention anything about state economies opening back up, tax policies that incentivized or de-incentivized economic activity, or that Americans learning how to live with COVID-19 are spending their money with businesses, which in turn hire more people who will spend more money.

Pelosi, and most Democrats, believe the only way to achieve economic growth is through the government. It’s been an argument for over a century. Is communism, socialism, or capitalism the best model? In the two former models, the government runs the economy.

Big Government Programs Eventually Hurt Those They’re Meant to Help

On January 26, 1799, Thomas Jefferson saw the dangers of debt. He wrote, “I am for a government rigorously frugal & simple, applying all the possible savings of the public revenue to the discharge of the national debt; and not for the multiplication of officers & salaries merely to make partisans, & for increasing, by every device, the public debt, on the principle of it’s being a public blessing.” He later wrote in 1816 that the public debt is one of “the greatest dangers to be feared.”

If America implements socialist programs under healthcare, education, and wealth redistribution, the debt will soar by tens of trillions of dollars or more. Try counting the zeroes. It’s a tremendous amount of money.

In broad terms, there are two ways the economy grows:

  1. Through the size of the workforce
  2. Through increased productivity

In other words, when more people are working and making things that people want to buy, and people are creating the demand for those products or services, the economy grows.

There is one wrinkle. When the government debt-to-GDP ratio grows beyond 77%, it slows economic growth. The Congressional Budget Office estimates that the federal debt will reach 98.2% of GDP ($20.3 trillion) by the end of 2020. The negative impact is that there could be serious consequences for trade, economic growth, and an increase in unemployment as the government is forced to either cut services (which isn’t likely) or raises taxes. The unavoidable tragedy is the loss of jobs.

Those most affected will be the poor, lower class, and middle class — the very people the government claims they are helping will be hurt the most.

Prosperity Can’t Be Government Controlled

While the government can inhibit or incentivize prosperity, it can’t create it. The private sector does that by selling things people want and creating jobs. Government can only take the money the private sector makes and redistribute it or flood the economy with debt, which has to be paid back at some point with interest, leaving the nation worse off than before.

The questions to consider if you haven’t voted yet is:

What kind of country do you want America to be?

Do you want to have a say in your future and enjoy the life of your choosing?

Do you want to be punished by someone in Washington, DC, who thinks you are making the wrong decisions for your life?

Don Purdum, Independent Political Analyst

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