Economic Growth

This "drop" was written many years ago but I just had to "dust it off." I certainly was not in favor of the Stimulus Bill that was going to immediately create "shovel ready" jobs. Unfortunately, it is creating jobs in the government sector which are paid for out of our taxes and are not lasting.

I am writing this Drop in the Bucket on June 7, 2004, as we are remembering the passing of one of our greatest presidents, Ronald Reagan.

I was very impressed with a quote that Ronald Reagan made that I have not yet seen on the TV or newspapers as they remember Reagan with wall-to-wall coverage of his legacy. I was so moved by the message that I had it blown up and framed … it hung in our company conference room for many years during the 90’s and now hangs in my private office.

To me, Reagan captured the difference between the government and the private sector in one concise paragraph – it speaks for itself and I will include it here as it was said and printed.

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  “Economic growth is created by people who produce things. The more that’s produced to meet increasing demand, the more new jobs and services are created in turn. Other than short-term make-work projects, the government does not create jobs; the private sector does. How? By investing in new plants and equipment, and by researching and developing new products. And how does the private sector do all that? By having enough corporate profits to reinvest and enough incentives to make such expenditures desirable.”

I think he got it right … how about you?