Monday, December 26, 2011

Job Creation By Magic Wand

All jobs are not created equally. The government has its magic wand.

One: Theirs are often not permanent.

Two: Theirs are often part time.

If the work is for government, are they unionized with special pension programs? If the answers are that they are overwhelmingly government-oriented, you know they may be phony and costly. Particularly when so much of the Obama administration stimulus went to states which added government jobs.

Another important statistic: While economists may differ, spending for a government job is known to have an economic multiplier effect, at most, of 1.4 or 1.5, On the other hand, private jobs have an economic multiplier of close to 3.5.

So beware of job claims during a recession, especially when you get those politically-inspired varieties. (See the Earl J Weinreb NewsHole® comments.)

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