Revive An Economy - The Answer Lies With The Private Sector

The best way to consolidate economic recovery and growing private sector.

The private sector, led by the discipline of the market economy, is becoming the most efficient way to create the right number of productive jobs, the provision of products and services the economy needs.

There is instead a major debate over the airwaves and around the water cooler in Minnesota, how best to create jobs and stimulate the economy. 700 billion U.S. dollars, the federal stimulusPackage, it is little impact on job creation. Unemployment continues to rise and fight the economy further.

So the government can revitalize the economy by creating more employment in the public sector? Or will the private sector will be the economic engine that turns this recession?

If the government is a person hired to dig a hole and then hired another person to fill it, were created two jobs. While twoPublic-sector employees are happy, the economic problem is that the money is paid to the private sector taken by taxes and fees.

According to the Minnesota Department of Employment and Economic Development, Minnesota's largest employer is the state of Minnesota, with over 75,000 employees. The average weekly salary of state employees $ 1044 $ 885, compared to the average weekly salary of employees in the private sector. The state pays for these jobs withTax money from the private sector would have reinvested to grow jobs and develop new products.

Unlike the public sector to create jobs in the private sector that want to provide products and services available to people to buy. The success of the private sector lies in its ability to adapt and respond quickly to respond to current events.

Unlike the government, if a private company with no more to see what the customers want to pay a price they are willing, they will fail. The bankruptcy of General Motors is goodSample. The government rescue of the GM failed miserably - will cost taxpayers 50 billion U.S. dollars. Some companies lose while winning other companies - in good times and bad. Economists noted a strong cleansing effect on the market in the last two recessions, 1990 and 2001. This constructive process of destruction has contributed to growth in the United States, which is higher than the rest of the world.

Obama had a 6-month tax holiday for support Individuals and businesses to replace the failed billion dollar stimulus package in the private sector would be left would be spent or invested millions of individual taxpayers, and the recession was less severe. It looks like the Fed is holding an auction this week to sell up to $ 200 billion U.S. government bonds. This is money that is not available on the private market for investment and pushes interest rates higher on funds that are borrowed from private individuals and companies.

> Economic growth occurs when confident entrepreneurs to invest and expand, creating jobs. Those employees buy goods and services and the economy grows. Government subsidies for the unemployed and under-employed are short-lived and do not help create the kinds of jobs that drive the economy. You can use a short-term feel-good fix, but how to crack, just keep the junkie depending on the dealer.