Friday, January 16, 2009

Does Keynesian Government "Job Creation" Help an Economy?

The bottom line is that government in a free society cannot create jobs without draining resources from the private sector. Comments?

1 comment:

  1. I am no economist, but I do enjoy your posts. I would have to agree that the private sector is drained when one creates government jobs. Have you ever considered a short mathematical analysis, using your island community, showing that creating government contractors is actually more costly, fiscally, than allowing people to be unemployed and/or retire? For a lower cost to the taxpayer, the government can sustain the unemployed and retired until the private market balances, improves and jobs are created through private sector job creation/innovation.

    Thanks for your interesting posts.