Difference Between Earning and Making Money | submitted by Jeff Cull
The economy is down, and we have been bleeding good jobs for years. The government’s domestic priorities seem to be health care, and to spend its way into a better economy. I don’t know where these people learned economics, but I figured someone should try to clue them in to what is simple and real. Let me see if I can explain this as eloquently and simply as my grandpa explained it to me when I was a kid.
There is a difference between earning money and making money.
The only way to “make” money is to physically turn something of a certain value into something of greater value — in an efficient enough way that it can be sold for more money than what is invested into it. For the most part, the only ways to make money are through mining, agriculture, or manufacturing. The total money made has to equal or exceed the total amount of money spent in this country. All the money that is earned and spent stems from these areas.
Now mining natural resources is dependent on the availability and location of the resources. Agriculture is great, but can be difficult to get into for people not born into it. That leaves manufacturing as a very big pawn in the game of making money. And instead of cherishing our manufacturing, and encouraging its growth, and training students to enter into it, and empowering companies to succeed, we stifle it, regulate it, tax it, and outsource it.
It’s been slipping away for years. Intellectuals snub their noses at it. Neighborhoods built around it push it away. Budget strained schools have chosen to push all above average kids into college and neglect the rest. Manufacturing jobs are rarely considered by outsiders as honorable ways to make a living. And yet the quality of life we’ve grown to expect in this country depends heavily on manufacturing.
So there it is. Agriculture, mining, and manufacturing are paying all the bills. If any politician worth his/her weight in salt wants to talk about making things better, the conversation should most definitely include some discussion about how to improve the chances for manufacturing growth. The government should be trying to level the playing field between domestic and foreign manufacturing. Real economic stimulation should revolve around helping manufacturing grow again and teaching our youth how to innovate and create new things.
Sign up for the free IB Update — your weekly resource for local business news, analysis, voices and the names you need to know. Click here.