No Mr. President; the government does not 'create jobs'

Chris Gallardo
Of all of the President's rhetoric lately (and there has been a lot), nothing is more bothersome to me than the repeated calls for ‘creating jobs'.‘Creating jobs' is not the same thing as creating prosperity and economic health. In fact, the result of the way that the President sees it and would like to implement it is that the two are inversely correlated.

If I take out an advance on my credit card and hire a carpenter to build me a deck, I have created a job. When he is done after two weeks, he is out of work again and I am now $5,000 in debt and therefore will have to cut back on my consumption going forward to pay off my debt. This is no different than a stimulus bill.

When you inject political motivations such as creating ‘green jobs', you are, by definition, diverting capital (through the public sector, away from the private sector) to resources that otherwise would not attract private capital because they do not offer the same return on investment. Therefore, when the government infusion of funds dries up, so do the jobs. Only thing left is the debt and less consumption going forward in order to pay off the debt.

If I am incentivized to borrow money and start a company because there is a business-friendly environment (low taxes, minimal government mingling and regulation), I might find a use for my god-given talents that serves fellow citizens and I may have to hire people in order to help me. If we succeed, I have created a job in the short-term and economic health in the long term which results in prosperity opportunity for everybody.

The only way to create jobs for the long run is to create economic health. The only way to do that is to incentivize individuals in the free market to risk their own capital or borrowed capital try to make a profit.

The idea that the President (and Dems) can create jobs works beautifully in their favor per their view of the world. It puts them in control to pull the strings on voter's livelihoods and keeps them dependent upon politician's whims.


Of all of the President's rhetoric lately (and there has been a lot), nothing is more bothersome to me than the repeated calls for ‘creating jobs'.

‘Creating jobs' is not the same thing as creating prosperity and economic health. In fact, the result of the way that the President sees it and would like to implement it is that the two are inversely correlated.

If I take out an advance on my credit card and hire a carpenter to build me a deck, I have created a job. When he is done after two weeks, he is out of work again and I am now $5,000 in debt and therefore will have to cut back on my consumption going forward to pay off my debt. This is no different than a stimulus bill.

When you inject political motivations such as creating ‘green jobs', you are, by definition, diverting capital (through the public sector, away from the private sector) to resources that otherwise would not attract private capital because they do not offer the same return on investment. Therefore, when the government infusion of funds dries up, so do the jobs. Only thing left is the debt and less consumption going forward in order to pay off the debt.

If I am incentivized to borrow money and start a company because there is a business-friendly environment (low taxes, minimal government mingling and regulation), I might find a use for my god-given talents that serves fellow citizens and I may have to hire people in order to help me. If we succeed, I have created a job in the short-term and economic health in the long term which results in prosperity opportunity for everybody.

The only way to create jobs for the long run is to create economic health. The only way to do that is to incentivize individuals in the free market to risk their own capital or borrowed capital try to make a profit.

The idea that the President (and Dems) can create jobs works beautifully in their favor per their view of the world. It puts them in control to pull the strings on voter's livelihoods and keeps them dependent upon politician's whims.