If you are a small to mid-size US manufacturer, government “stimulus” money is a foreign concept: Foreign, as in not relevant; foreign, perhaps even as not American; but more properly, foreign as in mucking up the laws of free market enterprise.
The argument in favor of a government stimulus is that just like in FDR days, stimulus money builds roads and bridges, putting people to work. But as economists are now disclosing about the “New Deal” days, for every $10 million dollars spent on work programs, $10 million in tax money investments were diverted away from jobs elsewhere as a free market would naturally decide. Using tax dollars to fund more bridge workers got those folks jobs, but other jobs were either displaced or destroyed.
My firm helps marketers market, build brand identity, communicate, sell and grow market share. On this playing field, you build internal value definition and external value recognition, or you lose. The rules are clear. But that’s not the game we are being allowed to play, when the government messes with the rules.
Here’s a timely quote from the Illinois Manufacturer’s Association regarding the government's massive borrowing and spending in general, and its unpredictable messing with the rules of a free enterprise in particular:
“The principal obstacle to business revival, with accompanying increase in unemployment, is the almost universal attitude of uncertainty and apprehension on the part of business executives regarding the future policies of the federal government on issues directly affecting the welfare of private enterprise.”
The above verbatim warning was sent by the IMA to FDR in the early 1930’s.
The depression lasted 11 years.
jb
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