What Happens When States Fuel Their Own Economy, Naturally?

GMC nearly collapsed, so the Federal government bailed them out. Did that help GMC become a financially stable company? I don’t think so! Unfortunately, government bailouts are nothing new and rarely help the problem.

False economies are yet another, but very similar, problem – to help the recession or high unemployment rate, the federal government, and sometimes state governments, will “create” jobs. Creating jobs simply means you’ve burdened every tax payer with yet another debt. Often these created jobs aren’t anything that is really necessary, nor are these jobs things the government should be doing. Creating jobs in this fashion simply fosters a false economy that is a vicious, un-ending cycle.

What would our economy look like if businesses were permitted to thrive? What if government red tape didn’t prevent utilizing natural resources? What if the government didn’t try to create jobs, control the job market and economy? This is what a real economy would look like.

Last week, Alaska’s governor announced each citizen’s dividend from the year’s oil profits – $1174. Roughly 647,549 Alaskans were deemed eligible for payouts from the Alaska Permanent Fund, which is a state-managed department that oversees the state’s oil extracting, exporting and selling it. Would you be happy if your state wrote you a check this year for more than $1,000?

If your state didn’t write you a check, would you be happy to work at WalMart for $17.40/hour in Williston, North Dakota? Waitresses at Outlaws Bar & Grill in Watford City, ND are making an average of $25/hr, including tips. These businesses aren’t unusual – the average hourly wage is 2-3 times the national wage. The unemployment rate is nearly non-existent – 2.7% and steadily falling over the last 5 years. Why? The answer is oil, just plain ol’ “black gold” and a free market. What economic benefits is this shale oil boom having in North Dakota? You might be surprised!

Not surprisingly, the Bakken area of the state – including Williston, Watford City & Tioga – is the fastest growing. How did this all start?

Bakken Oil Shale Boom

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