Wednesday, April 15, 2009

What is the difference between a job created in the private sector vs. job created in government?

This would not include the military or education, but in general a bureaucrats' job. Do both jobs impact society and the economy the same? If not, what's the difference? Could we grow the economy by setting up lots of big government programs and the government hiring people to make them work?


Huge difference. Corporations pay taxes, the government does not. The tax payer pays the salaries of government workers which is not the case in private industry. So with a government job, it is a double whammy to the taxpayer. Not only do they have to pay more in taxes to cover salaries, the government loses out on collecting tax revenue from a profit seeking entity. Furthermore, government competes with industry for capital which is used to expand businesses. When the government has to borrow it raises the cost of doing business to the private businessman since they pay a higher cost to borrow. Government doesn't produce anything except moving papers around. These reasons are why Conservatives want SMALLER government not the monostrosity that Obama is working to create.

In general, a public sector job is a manufactured job. It does not have a place in the economic cycle and instead is forced into it. Its purpose to exist is solely to create a job for someone to do. The work they perform is often a form of "busy work" that doesn't impact much.

A private sector job exists because there is a demand for it. This job contributes in some form to providing products and/or services. It fits into the economic cycle

Some public sector jobs are necessary, but the government often likes to manufacture public sector jobs. This isn't just to make the numbers look good, but also to enslave more people into feeling pressured to vote for them. If you made decent money but knew that only the corrupt incumbent supports keeping your job, who would you likely vote for?

Well, consider the post office - before the recession. It was 'privatized' many years ago. So, in other words, the money from the products it sells pays for the salaries and costs of the business.

It does have a certain monopoly, but is also obligated to serve everyone. Many government jobs are like this - they are very much like the private sector.

Other government jobs are for products that aren't like the private sector. Some economists estimate we have twice as many of these jobs as could be done by the private sector. Other economists will say privatization - like with Haliburton in the Iraq war, leads to corruption, high overhead and higher costs.

A job from a private company helps create wealth whereas a job within the government simply regulates wealth that has already been created. Governments are created to regulate things, if there are more government jobs than private jobs then one could argue that things are being over-regulated which in turn prohibits growth or wealth creation.

Well if you think about this way more government jobs created the more tax dollars spent the more tax dollars received equals more jobs it may not seem this way but people are estimating 40% employment by the government 2050...

Government jobs are FUNDED by the taxpayers--- private jobs are funded by furnishing a product or service-- and not from public money.

Governments do NOT create profit dollars-- they just spread around everyone else's money.

I do not see where a lot of more government jobs would help the economy seeing as how they would be paid with yet even more tax dollars.

Look at Cuba. All the people work for the government and they have squat.

Tax dollars

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