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The government can invent jobs, but it can't invent infinite jobs that accomplish something that people want, and even when it can the task won't generally be a
by jmckib 6y ago
The government can invent jobs, but it can't invent infinite jobs that accomplish something that people want, and even when it can the task won't generally be accomplished as efficiently as a private company would. It's also very difficult to remove a government agency once one is created. Government has all kinds of incentive problems that private companies don't, so generally (IMO) it's best to only use government to accomplish a task that the private sector does very poorly because of some market failure.
There's also a large cost to having people reallocate from one job to another, and from having businesses go under. There's physical capital that needs to be reallocated and "organizational" capital (not sure the right word, but I mean the way the business is organized) that may be permanently lost.
- malandrew 6y agoOn top of organizational capital, you're also losing tacit knowledge when a business dissolves.