Political Economy

What works with job creation in economics

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?

government job creation program
What is the best way to create jobs Mr. President?

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.

 

 

 

 

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Mark Biernat

This is my Youtube Channel: EconLessons

Comments

3 responses to “What works with job creation in economics”

  1. Adam

    Mark
    To get Jobs we need to stop job Killers.

    Such things as excess credit and the Financialization of America thanks to the Greenspan put(artificiality low interest rates) that propped up first the securities markets and then the Real Estate market to stratospheric level. That was an illusion and eventually Job killer.

    The Federal reserve is nothing less then “Central planing”.
    How can any one think that in a so-called Capitalist and Free Economy interest rates and currency need to be manipulated.
    That is still one big Job Killer that need reform.

    The Central Bank has failed in both its mandate Inflation and job creation.

    First of all job creation does not exist. Demand does.

    Jobs are a response to demand. By misallocating money to create job politicians can only destroy real demand and real existing jobs.
    That is presently a Job Killer.

    There needs to be a way to simplify the personal and Corporate taxes structure to get corporation to manufacture in the US.
    Is the taxation goal to grow the Government or the well being of the population?

    Take the Corporation rate down to 15% but no exceptions, no loopholes. Tax it when its paid out to share holders at the same 15% rate, again no exceptions, no loopholes.

    Have a no tax or a symbolic $1.00 taxation on low income family and a 12% flat tax from say $50,000 to $100,000 and a flat 18% above that. No exceptions, no deductions, no loopholes.

    For the working poor there should be a negative tax credit to motivate and encourage them working and learning instead of being on welfare.

    Eliminate all subsidies and funds that are allocated due to political expediency, ideology or simply ignorance.

    Those end up being malinvestments anyway that drains money from the real economy and its a Job Killer. The artificially low cost maintain farmers and corporation producing good that often where not wanted in the first place. They are dumped a low cost to other countries that benefit from the loss paid by our taxes or unsustainable increase in money supply. Thats also a Job Killer.

    Is it rational to enforce environmental regulation on US corporations and allow the importation of goods from countries that have no regulations at all. That is suicidal.

    The US should demand that countries exporting to the US have a at least a decent and improving standard on working conditions and environmental protection. How can the US purchase good from countries that use almost no norms and expect to be competitive and maintain jobs in the US ? Thats is plain stupid and a contradiction.

    Environmentalist also need to stop the regulation bureaucracy and start being result oriented, practical and use common sense. The goal is to have a clean environment not a gigantic and costly bureaucracy.

    With such changes I sense that a lot of products that are now manufactured outside the US would be made in the US and create real jobs.

    If we take time to look at what is made in the USA in your homes and ask our self if we can expect to create jobs wile continuing to purchase so many goods made in other countries that offer better fiscal and manufacturing advantages. If only half those good where made in the US finding employees would be the problem instead of employment.

    I am not an isolationist I like free trades but what we have now is a joke.

    Reply
    1. Mark Biernat

      It should be clear to most that the idea of central banking should have went the way of Ironclads and dreadnoughts, that is it is from another century and the idea has run its course. The more powerful the tool to fine tune the economy, the more market misallocation. This means prices and markets can not adjust the way they should, including in the labor market and the real estate market. I wish someone would understand this. 2007-2011 has been nothing but a vain and costly attempt to ignore this fact.

      Yet it seems nothing will happen and nothing will change. The Federal reserve is business as usual and there is no way that this institution can be replaced with a sounder monetary system. I would like to think so but it does not seem realistic.

      Taxes, I agree, the lower the better and a negative income tax I am a fan of.

      I think I have a soft spot in my heart for environmental issues, maybe, I am wrong and have not examined this, however, I can not imagine that the environmental rules are creating that much drag on the economy. Maybe I am so tired of living in a semi-polluted city and can feel the energy drain on me or that I love the outdoors and fresh air, but I tend to be soft on the environment.

      I think what is at work are large macro issues such as world markets opening up and demographic changes that are affecting the economics in the USA. After WWII the world was destroyed or in a cold war and the only place there was that was really stable was the USA. Since Asia opened up and Europe unified and the iron curtain fell, there is a lot more market competition in the world.

      How the USA can respond is to this is the question?

      I ask myself the same question on a personal level about business. How can I compete with such global competition? That was one of the things I loved about Plato, he used the metaphor of the person for the state and the state for the person with the philosopher king. So when I ask how can the USA improve its competitive advantage in the world, I have the same answer for myself.

      I think the answer is to keep the markets as free as possible and allow people to use their own creativity to find a solution themselves. I am doing this myself with my programming/language programs I am creating. I have to build a better mouse trap.

      Job creation comes with creativity and when people are allowed to express themselves rather than being taught about class resentment and government assistance. I know it is not a concrete action plan for government to implement, but I think something like the Daoist believe the best thing to do is nothing (and let the markets work).

      Reply
  2. Adam

    in your homes =in our homes

    Reply

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