Conservatives Must Explain the Path to Prosperity

The pioneer of collective bargaining and founder of the American Federation of Labor Samuel Gompers once said that "the worst crime against working people is a company which fails to operate at a profit." Today, the current crop of labor leaders and their allies on the political left have led "workers" to believe the essence of class conflict theory; that the success of some comes at the expense of others. This largely drives the campaign rhetoric and policy initiatives of politicians like Obama, Pelosi and Granholm who claim to represent the interests of "the people over the powerful."

In a country with over 9% unemployment and in a state like Michigan with over 15% unemployment, the main issue on the minds of voters in 2010 will be economic growth. The American people need to be engaged in a serious discussion about what types of policies grow an economy and what might hinder economic progress. This is an opportunity for conservatives to explain how jobs are created rather than using the empty campaign rhetoric of "we need jobs." Conservatives must explain, in terms that everyone can understand, that jobs are a byproduct of expansion in the private sector. When companies, small and large, make profits they can afford to invest internally. When companies spend more of the money they earn on research & development, expanding their production or services, this means that ultimately more jobs will be created to perform the expanded tasks the company has a result.

The government can create jobs as well, but they come at the expense of the taxpayer. Government jobs do not contribute to the overall prosperity, but simply act as a means of sustainability. Conservatives should once again begin to talk about reigning in the size of government and putting government employment in line with comparable work in the private sector. In other words, the message must be communicated that expanding the private sector is the answer to economic growth and the answer to the unemployment problem. The more people who are employed in the private sector means that more people will be paying the taxes that go to the public sector. Growing the public sector just means more government bureaucrats to administer the programs that sustain those who unemployed in the private sector.

Milton Friedman once said that the social responsibility of business is to make a profit for their shareholders. This is often mischaracterized by the political left as a ruthless and inhumane practice. Conservatives know, however, that profit contributes to the greater prosperity of all. In recent months, Democrats have attempted to convince the American public that more government will contribute to greater efficiency and overall greater prosperity. They use divisive rhetoric to attempt to turn employees against employers and champion themselves as "protectors of the people." Republican candidates running for office in 2010 must be prepared to explain to the virtues of private sector growth as the true path to prosperity for all. Those who simply use the rhetoric of "creating jobs" leave a too much room for interpretation about how jobs are created.

Economics professor and business owner Ralph Reiland explains the path to prosperity (better than I) in yesterday's Pittsburgh Tribune-Review. This must be the centerpiece of the debate for the coming year.