How the Government Can Create Jobs

Whiskey Contributor

Despite the understandable human tendency to help others, government spending cannot be a net creator of jobs. Indeed, many efforts currently under consideration by the administration and Congress will actively destroy jobs. These initiatives must stop. While it is easy to see how a deficit-financed government program can lead to the creation of a specific job, it is much harder to see how other jobs are destroyed by the diversion of capital and resources. It is also difficult to see how the bigger budget deficits sap the economy of vitality, destroying jobs in the process. In a free market, jobs are created by profit-seeking businesses with access to capital. Unfortunately, government taxes and regulation diminish profits and deficit spending, and artificially low interest rates inhibit capital formation. As a result, unemployment remains high, and will likely continue to rise until policies are reversed.