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November 19, 2004
Economics and Job Creation.
One of the ideas that gets horribly misunderstood in economics is that "job creation" is in itself a good thing. We see it all over the place, people saying that the hurricanes in Florida would grow the economy, just think of all the jobs created in the clean up. Govt programmes are a good idea because they "create jobs", politicians crowing about spending money to do so. Green energy advocates (I nearly choked when I saw this one, from a group at Berkeley) stating that because taking the US green would "create" 200,000 jobs, that in itself would be a good thing.
What always gets missed in these sorts of statement is that there is no shortage of jobs at all. There's well more than 6 billion things to do on the planet to make it a better, richer, happier place, more than enough work to do for each and every one of us. So if we artificially create something for someone to do, we are in fact taking them away from doing something else, and as is usually (no, not always but usually) the case the new thing that is subsidised is less productive than what would have been done anyway. That's why we have to subsidise it, of course.
The extreme of this argument can be seen here in the report on Bill Gates' inbox:
The next time you're sifting through the mortgage offers, cheap Rolex watches or dubious business proposals from Nigeria, spare a thought for Bill Gates. The Microsoft founder is the most spammed man in the world, with 4m emails arriving in his inbox each day.....[...]...
Unlike ordinary people though, Mr Gates doesn't get a sore finger from deleting unwanted missives. The company has a team of people dedicated to ensuring he only gets mail that he wants to read.
Now, if you really believe that "job creation" is a good thing, then you must also state that spam is a good thing, as look, it creates jobs!!
Don't want to go down that route? Fine, stop justifying the latest lunacy perpetrated by politicians throwing around our money on the basis that it "creates jobs".
November 19, 2004 in Economics | Permalink
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» November 29th Carnival of the Capitalists from Gongol.com
Personal favorites: How well-meaning people can make unacceptably bad economic recommendations, how to apply maximin thinking to small business, and a debunking of the jobs myth (that job creation is the end-all-be-all of economic growth). [Read More]
Tracked on Nov 29, 2004 5:24:43 PM
Comments
If there are more than 6 billion jobs available on planet earth, then why are so many people unemployed? Maybe it's because 6 billion tasks is not the same as 6 billion jobs which pay enough to satisfy the needs/wants of a human being and unemployable who are dependent on her.
Posted by: Seun Osewa | Nov 30, 2004 12:31:27 PM
Or maybe it's because not everybody understands how to make those around him realize that what he's doing is worth money to them.
Of course, it you set an artificial minimum on how much doing something can be worth, you'll make it more expensive for people to reward other people for doing things, and there will be a lot less of this rewarding in general and a lot of people left with absolutely nothing to get started with. I'll take half a loaf over having to content myself with chewing on pages of my copy of "Das Kapital" any day. :-)
Posted by: Alex | Dec 2, 2004 3:35:17 PM
How on earth can you make such a low, cheap "analogy" between job creation and spam as you did on your site in November 2004. From that, I can only infer that your neighbors and community are 'deletable', and hence from their view, you are eminently 'deletable' as well.
Shame to think you resemble a human being with such a sad view.
Posted by: Dave | Apr 5, 2005 4:01:24 AM
