I’m not sure which president of the United States was the first to promise the creation of new jobs by means of some government plan, but I know it has to go back several decades. In the news today is Obama’s plan to “create” 3 million new jobs. The following video gives the the context:
Properly speaking, government can only indirectly create new jobs by the things which it does not do (that is, the taxes it does not collect). You and I create new jobs when we increase our demand for existing products or services, thereby encouraging the provider of those products or services to add staff to support the demand. When government tries to create jobs by directly interfering with supply and demand or by passing laws which call for the new layers of bureaucracy to handle the implementation of this or that program–jobs are not created. They are either borrowed from the private sector directly (by taking over or socializing private sector goods or services) or they are borrowed from the future of the private sector (by taking funds away from businesses in more taxes and fees which could have been used to create new jobs).
Then there is the whole issue of Obama’s statement that 80% of the jobs will be private sector. That means 20% will be public sector (government): more layers and levels of bureaucracy (as just talked about in the above paragraph). Six-hundred thousand new positions which do not add real value to our economy. That’s approaching the total state population of North Dakota or Wyoming.
This new stimulus package is on track to further leach the lifeblood of capitalism from the American economy. Yes, I know that it comes with big tax cuts, but that is simply to ensure that Republicans will let it become law. Its real benefit is that it will stimulate us right in the doldrums, a la Western Europe, complete with a permanent class of government employees who do nothing but explain to the news media and anyone else who will listen why we are simply not as competitive as the rest of the world market because someone somewhere is cheating.