The Payroll For Government Employees is Provided by Tax Revenues From The Private Sector.

Government lesson
Kenneth Vaughan
The government does not create wealth. It sells nothing, manufactures nothing and provides no services at a profit. Not even the payroll of government employees is created wealth.
The payroll for government employees is provided by tax revenues from the private sector. The government only removes wealth from the private sector and redistributes it in ways that are not sustainable.
By this I mean that as government entitlement grows, so does the bill to the private sector. At some point the bill will be more than the private sector can afford, and the system will collapse.
Wealth removed from the private sector is a job-killer. As you take wealth from the private sector, it has less and less resources to create jobs. You can create jobs in government by taxing the economy, but there is no net gain in wealth creation.
Why? Because government jobs do not increase production/productivity in the private sector. Had the wealth been left in the economy, production (GDP) would have been increased and you would have a net gain in taxable wealth.
Try to remember this formula next time you try to interpret what politician A or B is espousing at election time.
Kenneth Vaughan

http://www.elpasotimes.com/opinion/ci_16576751

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