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How does the government create jobs?

I heard Clinton and Obama today talking about how the government, with them running it, will somehow create jobs in the private sector. And I've heard plenty of people say that Bush somehow lost those jobs in the first place. So I'm curious, how does that work? How would the government, which produces NOTHING, go about creating a good or service beyond more government? How does the government create real jobs?

Public Comments

  1. By strategic investment. Some of it is very direct. If the government provides more money for bridges or highways, for example, people are hired to build them. But usually it's more indirect. By reducing the deficit, Clinton influenced the Fed to lower interest rates, which led more people to borrow money to start or expand businesses, buy houses, etc., all of which leads to more jobs. Investments in research often have spinoff benefits to the economy. Most of the research that led to the creation of the Internet, for example, was funded by government grants.
  2. The government can reduce taxes, which spurs private investment, which spurs economic expansion, which creates jobs. The gov can also fund technological advancements, which create new industries, which create new jobs.
  3. By reducing interest rates, taxation, interference and regulation on private sector investment, business and individuals. Get their hands out of everyone's pockets. Not likely.
  4. The government doesn't create jobs. It can only create a pro-business and pro-growth environment in which business will thrive and create more jobs. Over-regulation, high taxes, and persecution of corporations is not that environment. So Clinton and Obama are both wrong, and wrong. The government doesn't solve problems, and nothing that is government-controlled has ever been a success. Just look at public schools vs. private schools. Look at the operation of the post office vs. UPS and FedEx. Look at government budgeting vs. the budgeting of private industries.
  5. Well the government cant create the jobs, Businesses create the jobs. However tax cuts and tax incentives can give business what they need to create them. So Clinton and Obama are describing how they can take credit of the whole process pretty much. But if they actually do tax cuts ( which I know HIllary wont im not sure about Obama ) then it would be good.
  6. They generate alot of bull sh*t beauracies
  7. Government can stimulate job growth through tax cuts. That is about it. Anyone who believes that government creates jobs should be stripped of their right to vote for being so foolish and uninformed.
  8. By creating more bureaucracy.
  9. Goverment can create jobs, but are they benefit to the economy. Goverment hands in the economy distorting the market mechanism and leads to inefficencies in the market in most cases. The goverment never created a job that made the economy more efficent. Still, the goverment can provide the basic instructure to give tools to people to compete in the private sector.
  10. by kicking out the mexicans
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