Lesson 5:  Jobs Don't Make Money.
There is a common myth that if you give people money and give them something to do,
they will spend it and that grows the economy.  Wealth is only made, and an economy only
grows when a valuable good or service is created out of nothing.  Prosperity leads to jobs,
not the other way around.  If you go around smashing everyone's windows, you will create
a boom in the window repair business.  But you have not grown the economy.  You have
actually shrunk it in 3 ways.
1.  You have destroyed the labor and materials that went into the original windows.
2.  You have cost people money to fix the windows.  
3.  You have diverted human labor and raw materials, both limited resources, from doing
something useful.

Bureaucracy is the window-smashing business of government.  (See
Lesson 4).  Forms and
rules make work and jobs, but wealth is destroyed, not created.  Take taxes, for example.  
In 2005, Americans paid $265 billion in fees to accountants, just to pay their federal
income taxes.
*  There are an estimated 1.2 million accountants in the U.S. **  Adding IRS
employees brings the total to 1.4 million.  That's 1.4 million educated, intelligent,
hard-working  Americans whose skills, talents and labor are wasted, and that's just in the
tax business.  There's the health care industry, where government has been increasing its
role for decades.  As a result, a whole new industry of accounting, called Billing and
Coding, is emerging to navigate that bureaucracy.  Agencies like OSHA and the EPA,
which were formed to protect people, have ballooned into intimidating, self-serving
Frankenstein's.  They add to the cost of doing business, and therefore add to your cost of
living as much as any tax.  (See
Lesson 2).

Two common, related myths circle around President Franklin Roosevelt and the Great
Depression.  The Democrats often say that FDR pulled us out of the Depression with his
massive spending, government hiring, and regulatory policies.  Republicans often say that
World War II pulled us out of the Depression because it put Americans back to work.  
Both of these are wrong because they violate the lesson:  Jobs don't make money.  FDR's
jobs created neither goods nor services.  His government expansion strangled the economy
and dragged the depression on for nine long years.  War literally destroys wealth with
gunpowder.  The only way that war can lead to prosperity in one nation is by conquest,
robbery and slavery of another.  The Great Depression ended because World War II
distracted FDR and the federal government away from trying to "fix" the economy.  

Next Lesson:  Barney Frank was Right

* The Tax Foundation
** Dept of Labor Statistics