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This logic has always bothered me, and I know lots of you will disagree, but here it is: Job creation alone is not a noble goal. It should never be used as a re
by fragsworth 15y ago
This logic has always bothered me, and I know lots of you will disagree, but here it is: Job creation alone is not a noble goal. It should never be used as a reason for making policy changes.
There's an economic fallacy at place here. Jobs, in and of themselves, do not benefit us on the whole. You could give some number of people a "job" to walk around in circles all day long and pay them money for it, but the net effect would be that society sees no benefit from this. Productive jobs, however, are good things. There is a conflict, though: the more productive your job is, the fewer employees are necessary - actually resulting in fewer jobs.
Hopefully you have witnessed this first-hand over the last few decades. Travel agencies have been replaced by Priceline, Expedia, etc. Tax specialists have been replaced by TurboTax, TaxAct, etc. Even simple legal matters can be handled by LegalZoom and the like, reducing the need for lawyers. All manufactured media products (books, news, movies, music, games) are now transferred digitally, which eliminates the need for factory workers to produce physical products. Online banking eliminates the need for bank tellers. Countless other examples.
Essentially, technology kills jobs. We develop software and devices to handle what was traditionally done by people, and sell the services at a much cheaper rate because we don't have to pay for all the overhead that old services once required. This is a good thing, however.
Anyway, I'm all for immigration, and I'm all for tech companies. But the fact is they destroy jobs more than they create them, and are therefore partially responsible for the current unemployment rate. The logic behind this article is all backwards because of this.
- muzz 15y agoAgreed. The term for what you describe in your third paragraph is "labor replacement". There is huge profit to be made in labor replacement, with the effect of loss of jobs. It is troubling that few readers pick up on the use of examples with gross jobs created and not net jobs created. In this case, Amit Arahoni's 9 jobs created are gross, not net. A more-clear example would be that of Craigslist. How many jobs has Craigslist created? Well, 30 jobs in gross, but likely a large negative number in net as it played a large part in displacing at least one entire industry (newspapers).
- tomjen3 15y agoYou comment is a very, very important one and I hate that people don't see the difference between jobs for jobs sake and productive jobs. I mean if all we wanted was jobs we could just outlaw gasoline, electricity and non-human powered generators. That would create jobs for untold millions. It would also be utterly destructive for our standard of life/health/happiness/etc.