tag:blogger.com,1999:blog-8358039.post4542511219679118559..comments2024-03-25T15:17:04.488-07:00Comments on Captain Capitalism: We'll Just "Create" More JobsCaptain Capitalismhttp://www.blogger.com/profile/05620212946121617985noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8358039.post-3741991447659302172009-01-21T13:44:00.000-08:002009-01-21T13:44:00.000-08:00@Anonymous"...it seemed that the Federal Governmen...@Anonymous<BR/><BR/>"...it seemed that the Federal Government employed about 2.7 million people excluding the military."<BR/><BR/>I have no doubt that the government is responsible for the employment of many paople. The critical word in question, however, is <I>creating</I>.<BR/><BR/>In order for the government to employ somebody, they need money. They can raise this money in one of three ways: by taxing their population, by printing more currency, or by borrowing it. All three of these mechanisms reduce the wealth of the population, the first directly, the second indirectly, and the third in the future.<BR/><BR/>By reducing the wealth of the population, the government reduces their ability to employ people, both directly and indirectly. In this way, jobs funded by the government are just taken from other areas, and not really <I>created</I> at all.<BR/><BR/>Not only that, but governments are notoriously inefficient at these transfers, and so the amount of employment "created" is always less than the amount of wealth taken.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-59069216193157893282009-01-20T12:14:00.000-08:002009-01-20T12:14:00.000-08:00If I remember correctly, at one point, Yahoo! News...If I remember correctly, at one point, Yahoo! News was reporting that Obama's plan will create 4.1 million jobs.<BR/><BR/>Even the 14 page plan was not exactly clear on how that would happen, and it actually admitted that by 2014 the unemployment rate will most likely be right back where it is today. But, somehow, 4.1 million people would be right back at work.<BR/><BR/>I think there are a few things that should be pointed out to those that believe the President can wipe out unemployment. Things like a certain percentage of unemployment is actually healthy for the economy. Things like how the actual unemployment percentage is only a small part of the job picture, and actually the average (mean, median?) amount of time a person is unemployed is a more telling number of the job picture.<BR/><BR/>Who cares what the unemployment rate is, if the overwhelming majority of the people looking for work find employment in a timely manner?<BR/><BR/>Also, in response to Anonymous above, the real question is how will the US Government pay for all the jobs created without devaluing the dollar, or enacting crippling taxes on individuals and businesses? Sure, Uncle Sam can just hire more people, but did that create any wealth? Did that increase the living conditions of the average Amreican?CBMTTekhttps://www.blogger.com/profile/07408004987103862573noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-60600280786587917222009-01-19T21:34:00.000-08:002009-01-19T21:34:00.000-08:00I'd really like it if politicians would use sensib...I'd really like it if politicians would use sensible terms like "creating wealth" instead of "creating jobs". Job creation is easy: see Bastiat's parable of the broken window. Wealth creation, on the other hand is much more difficult.<BR/><BR/>Alas, "creating jobs" has a more egalitarian ring to it than "creating wealth", so I doubt politicians will stop using it any time soon.Andrew Lhttps://www.blogger.com/profile/02700176677593585631noreply@blogger.comtag:blogger.com,1999:blog-8358039.post-74496728686276380532009-01-19T18:46:00.000-08:002009-01-19T18:46:00.000-08:00It's not just the stats, it's the concepts. Most t...It's not just the stats, it's the concepts. Most the replies to the Antiplanner can't comprehend that restricting the supply of housing can cause prices to increase. As far as the job creation thing, it seems that jobs are gifts from the gods that only anointed public officials can ask for. I would love to hear a politician say that we intend to foster policies to encourage business growth.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8358039.post-29778497268847996892009-01-19T17:04:00.000-08:002009-01-19T17:04:00.000-08:00Uhm, er, huh?When I checked just a few minutes ago...Uhm, er, huh?<BR/><BR/>When I checked just a few minutes ago ( http://www.opm.gov/feddata/html/2008/january/charts.asp ) it seemed that the Federal Government employed about 2.7 million people excluding the military. State and local governments employ large numbers of people, too, and still more millions are indirectly employed by the government through private contractors working on government contracts.<BR/><BR/>Since the Chinese still seem perfectly willing to lend the federal government dollars (and the Fed is willing to print money if that falls short), there's no risk of not meeting payroll.<BR/><BR/>I'm not sure where you get the idea that the government can't create jobs, since the government demonstrably does. If the government decided to directly create more jobs it could expand the federal payroll with make-work projects (such as the CCC from the Depression).<BR/><BR/>That might not be the best use of federal resources, but those jobs would be no less real for it.Anonymousnoreply@blogger.com