Government can and does create jobs. The problem is that jobs created by government are supported by taxes, not profits. That means that only if sufficient jobs that create profits exist will there be funds from which to take taxes to support the government jobs. In my view, all the current talk about government (or politicians) creating jobs is a smokescreen. It only detracts from the need for jobs that add value/create profit. If, for example, two government jobs are created, other non-government jobs must be created or made more effective/profitable to add the value to pay for the two government jobs. In a way, every new government job takes from the efficiency of a number of for-profit jobs. Seen in this light, only the creation of non-government jobs increases the output and therefore the strength of our economy.

Responsibility-Freedom Demands It

First, let’s be clear.  Government normally creates jobs that create nothing.  Real jobs are ones that add value and pay taxes from that added value.  Most jobs created by government fail that test.  So, the thought of Government creating jobs is one that must be understood as not actually creating jobs, but doing things that will encourage the creation of jobs in the private sector.  Without the private sector jobs that add the value that is taxed, there are no funds for the government jobs.

Government can be good at coordinating, organizing, regulating, and setting standards.  So what can Government do to help create jobs?

There is an old Bumper sticker that I have on my wall that holds one of the keys to answer that question.  It says, “Make Welfare as hard to get as Building Permits.”  Though a bit simplistic (like most bumper stickers) it points out the…

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