Is it really jobs creation if it cost the market jobs?

Here is a classic old article that handily explains why the "new" jobs creation bill will not create the jobs it is touted to be creating. Yet there are few politicians left or right that have the economic background to be able to understand this policy mistake and fewer still those who do and are willing to stand up and fight this destructive insanity. Here is an excerpt from the still relevant article written in 1987; by Dr. DiLorenzo who is Associate Professor of Economics at George Mason University and an Adjunct Fellow at the Center for the Study of American Business, Washington University, St. Louis, Missouri.

The reason why government jobs programs cannot create jobs is straightforward: Even though the programs may “create” jobs for some workers, the resources to pay for the programs must be extracted from the private sector. Taxing the private sector reduces its ability to create jobs, so, at best, government jobs programs can only alter the composition of employment, not the total volume. More government jobs are created, but at the expense of fewer private-sector jobs.

The good Dr DiLorenzo used a fine quote from one of my favorite economic commentator Fredrick Bastiat. He stated of government job creations “is nothing but a ruinous hoax, an impossibility, a contradiction, which makes a great show of the little work that it has stimulated, which is what is seen, and conceals the much larger amount of work that it has precluded, which is what is not seen.”

Life is hard enough when you are in the process of raising kids and living life. The government should NEVER ride in claiming to be making life better while in reality destroying the very fabric of our economy and the job creating engine of the entrepreneurial spirit. Sadly, it is all too often a demand of those most affected by the difficulties of an economic down turn! So the next time you hear one of your Senators or State Legislators or even the President of the United States say that a job creation bill is needed realize that they are seeking to buy you vote and to destroy the very economy they claim to be seeking to bolster!