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The Secret to Creating Jobs

February 27, 2011
Can the government create jobs without inhibiting job growth in other areas? I think you know the answer to this question.  If you use simple mathematics, the government has to confiscate money from the private sector in order to create more public jobs.  The more government spends on creating these inefficient and sometimes useless jobs, the more free markets will suffer, effecting real job growth. 
One prime example are the green jobs that are so often touted as the solution.  Spain is suffering from their ill-advised attempt in creating a green economy, with an unemployment rate that has reached 20%.  Gabriel Alvarez, a professor of applied environmental economics, concluded that every green collar job in the US would result in the loss of 2.2 jobs.  Taking into account the increased cost of electricity and Spain’s expenditure in creating new green jobs, Alvarez estimates the Spanish spent $774,000 for each of their new green jobs.    
The American people are among the most creative on earth.  When government steps out of the way, the creative energies of Americans are released and entrepreneurs begin to invest resources.  Investment means new jobs.  Just like a crop in rich soil, the potential for growth in America always exists when conditions are ideal.  People need incentive to take risks in business and I’m not talking about corporate welfare.  Natural incentives like success and monetary reward are sufficient for most and have fueled the engines of growth throughout our great history.  Heavy taxes and interference by government squelches growth and hiring because the rewards for taking risks are diminished.
When quasi-governmental agencies micromanage businesses and impose heavy burdens on producers, small firms in particular reduce hiring and expansion.  Even the poor in America can succeed when government cuts regulations and taxes, allowing hard work to be rewarded without overburdening small operators with red tape, fees and unreasonable requirements.  Most federal regulations on businesses are an unconstitutional usurpation of power, anyway.  If we eliminated several bloated federal agencies, there would be a vigorous, organic growth dividend sprouting from the private sector after a short adjustment period.  Government’s role in the free enterprise system should be limited to prosecuting fraud and helping to maintain interstate commerce as a free-flowing system, not impeding it with regulatory tyranny as it does now.  As expected, they have miserably failed in fraud convictions.
The land of opportunity is a place where your hard work and ingenuity can potentially yield a harvest of success.  There is no guarantee, however, a free enterprise system rewards the innovative or low-cost operators, unlike the public sector that often rewards failure.  When entrepreneurs believe they can profit by hiring a new employee, they will do so.  When government chokes out the benefit of hiring that new employee, the unemployed remains a statistic.  As Ronald Reagan stated, “government is not the solution, it is the problem.”  It needs to get out of the way and allow dedicated business owners to do what they do best, build their firms and create new jobs.
John K Rooney
Tri-Cities Liberty Alliance
Printed in the Progress Index 9-2010
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