Rush Limbaugh: Shrinking Private Sector, How it Happens – Raise Taxes on Rich? Where Does The Money Go?

Earlier today I posted a part of Rush Limbaugh’s remarks on the history of pensions – how they came to be in America. There was a second part of that segment is laid out so perfectly that I’m making a separate post from it. How and why has our private sector shrunk, how has the government grown to mammoth proportions, and if we tax the rich, where do those taxes go? This is a great lesson for our children and grandchildren.

Pullout Quote:

The government doesn’t start small businesses; it obstructs the creation of them. And once they start up, it taxes them and makes it even harder for them to grow. ~ Rush Limbaugh

Rush Limbaugh:

Let’s use some numbers. Let’s say the private sector in this country is — let’s make it easy — $10,000. That’s the total amount of money in the private sector. Obama comes along and says, “We need to create jobs. We need more jobs in the private sector. So we’re going to spend $2,000. We’re gonna inject $2,000 in the private sector.” ~ Rush Limbaugh

Okay, where are they going to get the $2,000? The government doesn’t produce anything, the government doesn’t have any money. In order to get the $2,000 to put to the private sector they have to take it from the private sector, or they have to print it, or they have to borrow it, all of which takes money out of the private sector.

I don’t care how they get their money, it comes out of the private sector.

Government ends up growing, the private sector shrinks, unemployment goes up, the $10,000 that was the private sector now becomes eight.

And they want to redistribute that, claim they redistribute it to the people who are more deserving of it than others. It is one giant scam.

You simply cannot, even in redistribution, whose goal is to be fair, you can’t take one dollar out of the private sector, and after you’ve taken it, then give it to somebody else in the private sector and say that you’ve grown the economy.

Nothing’s changed, ’til somebody else has the dollar you took out. And if you give that dollar to somebody that’s not working, then you are subsidizing unproductivity, and you are shrinking economic growth where people exist and want jobs, while at the same time expanding the size of government and its power.

All the while, you claim to be creating jobs and caring about the little guy, when in fact all you’re doing is shafting the little guy by taking opportunity away from him.

You want to raise taxes on the rich, be fair, fine, raise taxes on the rich, what does that do?

Takes money away from them, and where does it go? It goes to government. A lot of people think if you raise taxes on the rich somehow it’s gonna end up with the poor, but the poor are still poor after taxes go up on the rich. It just never happens.

You take money out of the private sector, private sector gets smaller, it doesn’t grow, and therefore there are no jobs. This is essentially what Barack Obama has done on purpose, and that’s what he’s gonna propose on Thursday, is more of it on the theory that they just haven’t spent enough yet.

But government spending, creating jobs is a mathematical and actual metaphysical, or physical, whichever, impossibility. It cannot happen.

The government doesn’t start small businesses; it obstructs the creation of them. And once they start up, it taxes them and makes it even harder for them to grow…

…When you take money out of the private sector, that’s all that can happen.  There just are fewer jobs to be had.  They’ve been destroyed.

Thanks to Mayfield’s Economics Blog for the graphic.

Posted by Maggie @ Maggie’s Notebook