Tuesday, December 08, 2009

"Creating Jobs" Myth

Thomas Sowell, once again, gets it right about "creating jobs". From National Review Online:
President Obama keeps talking about the jobs his administration is “creating,” but there are more people unemployed now than before he took office. How can there be more unemployment after so many jobs have been “created”?

Let’s go back to square one. What does it take to create a job? It takes wealth to pay someone who is hired, not to mention additional wealth to buy the material that person will use.

But government creates no wealth. Ignoring that plain and simple fact enables politicians to claim to be able to do all sorts of miraculous things that they cannot do in fact. Without creating wealth, how can they create jobs? By taking wealth from others, whether by taxation, selling bonds, or imposing mandates.

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