According to AFL-CIO President Richard Trumpka the best way to create jobs is to raise taxes. (Edit: I meant to also mention this may not matter if Trumpka didn’t have DAILY conversations with the White House. However, this amount of influence makes his comments quite significant!) His plan would be to raise the federal gas tax for infrastructure development. A good friend of mine argued with me that this is the best way to stimulate the economy, because of the United States “greatest period of economic growth” occurred during FDR’s presidency. However, the problem with government spending is it creates nothing, which makes such economic “growth” unsustainable, as you can see by the year over year change in GDP per capita since 1900.

GDP per capita
In reality, government spending is simply a black hole. It creates nothing. However, when business spends money, it is usually investing in growing the business, which create more revenue, which leads to more tax revenue. As such, when government takes more from those who invest, they reduce America’s ability to grow its economy.

Comments