Government: solution or problem?

I thought I would blog about why I think government should not be the driver but facilitate the recovery.

The US Government can make money in one of three ways.

1) Increase taxes. However, if the government increases taxes on individuals and companies alike there will be less money in the pockets of the people. With less money, people won't buy. When people don't buy, companies layoff, cut salaries and etc. This would prolong a recession.

2) Borrow money. However, borrowing money would only increase our national debt which would increase the crazy amount of interest we are already paying on the trillions of dollars of debt. This would also be a negative impact on the economy.

3) Print more money. However, this would have the negative affect of creating out of control inflation. There would be too many dollars in the system chasing too few goods. This would also have a negative impact on the economy.

The government can only worsen the problem in any scenario. This is why government should facilitate the recovery by allowing the principles of supply side economics to give power back to the American people and not to the government. Money in the hands of small and large business alike will allow companies to reinvest and hire more employees. Reinvestment can create new discoveries in any field such as healthcare and computers which can create an entire new industry which would allow even more people to be employed and create more wealth.

In the short run, government will lose revenue but in the long run revenue will increase because of the scenarios mentioned above. Giving power back to the American people by allowing the innovation and ingenuity of the American mind to take over, will be what takes this country out of the recession and to even greater heights.

It is also worthwhile to mention that anything that the government undertakes incurs great waste and is riddled with inefficiencies. That is why anything that is government owned is slow, inefficient and incurs great losses. The government has no market value on anything they produce because their input is always constant.

The salaries and overhead costs from the government jobs created by the stimulus package will have to be paid for by taxing the very people to whom they are trying to help along with everyone else. Is that productive?

These reasons should be plenty why I think that Obama's stimulus package is wrong for this country and will in the long run hinder growth.