Government doesn't create jobs; investors and entrepreneurs do
Reader comment on: How To Create a Job
Submitted by Jason Crawford (United States), Apr 6, 2011 13:53
Good to hear some sound economics in NPR. But this still isn't quite right. Nothing government does can create jobs—government can only create the conditions under which capitalists can create jobs.
Startups create jobs when an entrepreneur has an idea for a productive endeavor, and investors fund it. Established companies create jobs when management sees a way to expand and can fund it from current profits or new investment. In either case, someone has to have the vision to see the opportunity for productive work, and someone has to have the capital to pay a person to do that work.
That is creating a job.
All government can do is create the conditions of stability and order that are necessary for this to happen, by enforcing contracts and otherwise protecting individual rights. Beyond that, all they can do is stay out of the way. Any attempt to create jobs by meddling in the economy will ultimately backfire.
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The Future of Capitalism replies:
The NPR guys basically come around to this "create the conditions" view in the course of the piece, if you have time to listen to it all the way through, you'll probably be pleased they wind up pretty much agreeing with you.
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