  urlLink Lumps of Labor Paul Krugman have me a bit of a struggle this morning. I actually agree with some of the things he has said, but of course, we arrive at inevitably opposite conclusions. It struck me in reading, that Krugman, like many on the Left, believe that the best way to get money into circulation is to have the government spend it. I want money to circulate as well, but I want the people to spend it on themselves. This is the crux of the economic difference between the two parties, and I think it illustrates why Command and Control approaches favored by the Left always fail. They believe that money has to be spent, but moreover, money has to be directed in endeavors that enhance societal benefit.
Therefore, they favor confiscation from the individual, and spending by the government in directed plans. These plans are supposed to enhance job creation by directing labor towards projects that benefit society. They reason that this money will make its way back to the people through government spending and job growth. So it is good for you to pay high taxes, since those taxes will assure you a steady job and social benefits. I believe that 'societal guidance' is a load of crap, to put it inelegantly. The economy is too vast to be directed, and the will of the majority is expressed through the billions of daily transactions of each person.
While the Left may not like SUVs, there is still a high demand for the product. It is a winning product that creates jobs and profits. In a Command and Control economy, it would be up to DC to select which products will succeed, and how often does the Government get things right? Money needs to be spent, so leave it in the hands of the people to spend. Money is directed more efficiently when the spender receives a direct benefit from the expense. Under a tax system, you still spend, but the money is spent on government, and then they decide where it goes.
I hope that's clear. I know it isn't a big revelation, but when I find myself agreeing with Krugman on some economic issues, it scared me. As I looked deeper, this difference rose to the surface, and I took comfort in the fact that it is the same fundamental difference I've had for ages. Still, Krugman uses the occasion to bash Bush and his policies. Back to the Command and Control model....policies don't create jobs. The best that policies can hope to do is to remove the barriers to job creation.
The Left sees a job as something that must be created. They don't believe that jobs spring forth from the desire of individuals to improve lives. All you need to make a job is the will to work, and the gumption to apply yourself in an activity that provides value to your fellow man. That is all. Jobs WANT to be created. The Right believes that jobs are restrained from creation by aritificial circumstances.
Taxes, regulation, laws. In our view, Jobs are the natural condition, and need not be artificially encouraged. A fundamental difference of opinion. It is why we favor low taxes for business, and the freedom to let the market set wages and conditions. Conversely, the left has a hostile view of the job creation element of the marketplace. They feel it must be coerced to create jobs, and the businesses are by nature exploitive.
Just my two cents. 
