Where are the jobs?
Reader comment on: Cost-Free Job-Creating Idea No. 25
Submitted by ben (United States), Oct 18, 2011 08:57
This "job creating" idea is wishful thinking. I find that the whole Republican party is essentially making the argument made here, and in many of the other ideas for job creation on this site. The basic idea is that government is standing in the way of job creation (regulations, uncertain health costs etc). But even if you did away with all regulations this site thinks stand in the way of job creation, that does not directly create one job. The assumption is the private sector, when those regulations disappear, will then create jobs. But I would question this basic assumption. If I own a business, I need to be able to sell things. If my costs go down as regulations to keep our air clean or drinking water safe disappear, I will only reinvest that difference if I am confident that I will be able to sell the widgets I am making. In our current economy, how many businesses are dying to expand and hire? Few, not because of regulations, but because of demand. Cantor et al would have us take Herbert Hoover's approach to growth, wait and see. That didn't work in the 1930's, and won't work today. Of course, with our current gridlock, we will have to learn this lesson again.
Note: Comments are moderated by the editor and are subject to editing.
The Future of Capitalism replies:
You may be right about demand, but you are wrong about Hoover. See here:
Comment on this item