Election 2012: Jobs, taxes, and government

11/10/2012

We've naturally heard a lot about jobs, taxes and government in the last several months.

Perhaps the most confusing thing I've heard lately is that if sequestration goes into effect in its current incarnation, the government, which in the eyes of many cannot, by definition, "create jobs," is going to effectively eliminate jobs due to automatic cuts in defense spending.

Which in turn rather directly implies that private, defense-sector jobs do come from the government. After all, who buys tanks, submarines, and airplanes from the private-sector contractors that make these things? If the taxpayer-provided money goes away, apparently so, too, do private-sector jobs. The market is the government.

Another confusing thing is taxes. If the Bush-era tax cuts expire, as there were intended to do, taxes go back up to the levels we had during our last economic good times. If the payroll tax cuts expire, taxes go up further on the middle class, which would most likely dampen demand further....
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