Tuesday, November 16, 2010

Government and Job Creation

The government can employ people and achieve full employment by drafting every unemployed person. Particularly, high-cost, make-work jobs. Federal “stimulus” spending is promoted for its job creation. But that obviously does not “create” jobs.

Private industry jobs, on the other hand, are created in response to economic demand, incurred for a need. A businessman knows that expenses should be kept to a minimum, so jobs are genuine. Real job growth requires business optimism. With no tax and iffy economic fog. Training along with payroll expenses make human resources a long-term investment.

Government work also absorbs tax money, that could have been used for economically useful job growth. The government uses tax dollars as “stimulus” funds only as it sees fit.

The government can help create jobs by cutting taxes. That would make it easier to create business. They can help also by limiting restrictions on terminating employees. The latter would therefore more easily get hired by private industry.

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