Understanding job sectors is important

We hear talk about “created” and “saved” jobs. So, where are the jobs from the government’s financial bailouts of Wall Street banks, Main Street takeovers (GM, Chrysler, AIG, etc.) and the $787 billion stimulus spending?

The answer lies in understanding that there are two job sectors. All jobs are either private sector or public sector jobs.

Private sector jobs would include all private industry provided goods and services from individuals starting a company to corporate hiring. The private sector is a “for profit” entity, living, growing, and paying taxes from profits.

Public sector jobs would include all government jobs and its administration of all the services and programs it provides. This would include government at all levels, city, county, state and federal. Public service Jobs, from elected officials and their employees to police, firemen, and all educators from grade school through college.

The public sector is not a “for profit” entity. It lives and grows by taxing the private sector. All public sector jobs are financed from private sector taxation.

Current government administrations list the jobs “saved” as “firemen,” “police” and “educators.” These are all public sector jobs financed by borrowing against future taxation of the private sector. The “created” jobs would include infrastructure improvements and home insulation. These jobs are also being charged to future private sector taxation.

Unless and until the private sector is stimulated by increasing demands for private sector goods and services (reduced personal taxation), reducing overhead costs (business taxes), and creating a stable, predictable future, private sector jobs will remain lost. As long as private sector jobs are lost, tax receipts, which finance the public sector, will also remain lost.

LLOYD WALLACE

Hope