In a time when the manufacturing of downward arrows that are inserted in economic graphs are the only sector of the economy that is booming, it is worth to be reminded what works in economics and what does not.
Basically if you watch this video you will understand what does not work with job creation. This video is not economics 101 some boring academic research video. It conveys a clear message in pretty funny video and can be applied to economics as a whole I highly recommend you watch this as pictures speak a thousand words.
The creation of jobs with the goal of full employment is what does not work. We all need jobs, but why must someone help us get one? Why must as a society we have a goal of 100% employment?
What effect does just creating a job for the sake of employing people have on the person or the rest of society?
The communist tried that 1917-1989. It did not work. The Keynesians tried that in the 1930s and in 2008 and it was counter productive proportionally to the job creation pressure applied.
Many people think the biggest tragedy of communism was the poverty it created. It was not. It was the misapplication of human capital. That is bright young budding minds and old minds aspiring to better themselves, talent and skills being applied to something that was not their calling. Living below your potential in a world where jobs are created for you, not the creation of your own inspiration.
But to simply to employ people does nothing to allowing humans to strive and better themselves to be the best they can be.
The stifling of expression of human freedom. I am a libertarian leaning not a hippie, but if someone is destined to be an artist or hipster poet, let them be and let the market determine their worth and if people are willing to accept the costs and benefits of this, than hey it works. If they understand that the marginal product as demanded by others, there is no problem.
My take on it is there is something artificial in the market it withholding back the budding entrepreneurs from creating the American dream for the US economy. What is artificial? Job creation programs by the government.
Politicians talk of job creation
When the President talks of ‘job creation’ know this is a code word for ‘suppressing human creativity and expression’. Sure times are not the best but, ‘did you Mama ever tell you life was going to be easy’? The government is not some nipple for everyone to feed from.
- How do you create jobs? Government’s role should be to maximize personal liberties and let the markets work. Further a leader should inspire people to change people’s attitude towards life, not put hope in job creation. That is get the message out there that you can do anything you put your mind to. There are no judgements here, nor rights or wrongs of how to make a living. If you want to be an artist or musician or a stock broker or physical therapist or work in a coffee shop or eccentric entrepreneur, you can do it.