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The basic premise, the government can create jobs out of thin air, is flawed. Rest is gravy.
by solutionyogi 17y ago
The basic premise, the government can create jobs out of thin air, is flawed. Rest is gravy.
- kbob 17y agoJobs are created out of debt, not thin air. The gov't does indeed have the ability to create more debt and more jobs. We're betting that the stimulus' net effect on the economy is more growth than the debt's interest, so it'll be more productive to borrow, spend, and repay than not to. You'll note that the private sector does this all the time. Student loans are a perfect example: create a professor's job today for a higher salary tomorrow.
- gjm11 17y agoLooks to me like that's a conclusion, not a premise. What actual assumption that Smart Growth America et al actually made are you disagreeing with, and on what grounds?
- notauser 17y agoThat depends on what it spends money on. Infrastructure spending _may_ increase efficiency such that the increased tax burden is less than the efficiency gains enjoyed by tax payers. In this situation the government has indeed created jobs by expanding the economy. Of course if they pick the wrong projects then efficiency won't rise as fast as the impact of taxation, the economy will shrink, and jobs will be lost. This isn't a special characteristic of governments though - companies (and individuals) can torpedo themselves in the same way (investment ROI is too low), albeit usually on a smaller scale.