President-elect Barack Obama campaigned -- and has continued to generate positive press -- on his commitment to job creation.
I've been scratching my head at this for awhile and wondering: Why is job creation a worthy goal? Shouldn't the goal be economic growth, and job creation is a happy byproduct of that?
Writing in Reason, Jacob Sullum, dissects exactly why Obama's rhetoric on job creation is nonsensical, illogical, and flies in the face of economics:
Obama also wants to spend $60 billion to "provide financing to transportation infrastructure projects across the nation." He says "these projects will create up to two million new direct and indirect jobs and stimulate approximately $35 billion per year in new economic activity. Fixing a bridge, widening a highway or building a light rail system may or may not make economic sense. But the fact that it involves paying people to operate jackhammers and pour concrete does not make it any more worthwhile. If creating jobs can justify transportation projects, why not fill the country with bridges to nowhere.
My optimistic hope is that Obama realizes that job creation is not a worthy goal and mentions only because he's politically savvy enough to know that it will generate consensus around his ambitious proposals. But if his billions of dollars in infrastructure projects are motivated by a desire to create jobs, we are in a lot of trouble.











Reader Comments (Page 1 of 1)
12-28-2008 @ 9:34AM
JCH said...
A growth economy doing what? Look around. We have millions of extra houses and buildings that will house and be used by nobody.
Bush got to build millions of houses and buildings for nobody. Cite the Reason article that objected on economic grounds.
12-28-2008 @ 10:23AM
Tinus Guichelaar said...
Why link to a printer version?
12-28-2008 @ 11:10AM
sitruc said...
Infrastructure isn't necessarily buildings and it is rarely homes. You may have noticed places like the UAE investing in seemingly ludicrous endeavors, but that is all so when the oil runs out they have industries to fall back on and aren't hit as hard since they will no longer be reliant on one industry. Most of the plans for the US work on the same principles. They aren't talking about building the World's Tallest Pez dispenser just because though. They seek to improve or build infrastructure for smarter growth and better connecting regions and areas. That can mean preparing a sewage line for a larger load, preparing power lines so the grids aren't stressed or widening roads and creating right-of-ways. Instead of dealing with problems after they are problems, there are some things that can be preempted or fixed now. If 10,000 people live in a sprawling location A and 100,000 people work in location A, but commute from location B, wouldn't it make sense to invest in infrastructure with the hope of better serving the inhabitants of and commuters to location A? You might not like that rhetoric, but that example is very real unlike simply stating it might not make economic sense. Projects seek approval and we aren't talking about bridges to nowhere just so people are working. The plan is for necessary bridges to connect people actually being built instead of sitting in planning stages for 20 years while everything else around it grows.
12-28-2008 @ 2:06PM
moonie said...
Just another deceiving move from Obama what good does it do to re- do the entire road system if people don't buy it's silly.We already have enough roads for Americans to drove onto to get to the shopping centers. The smartest thing to do right off is re-do the entire real estate system so people can afford to buy and keep their house.Second most important sell gas guzzlers so people aren't slaves to oil. and also conserve buy smaller vehicles.Of course do whats been done for the big 3 and make them comply.The third most important thing to do for Americans is throw away their credit cards do it the hard way and save and pay cash for everything.Then buy American vehicles and as much American made merchandise as possible this keeps our manufacturing base going.You then have a home to live in can afford your small car and buy gas for it the money flows back into the American economy and people keep working.Only a few ways, building new bridges and roads alone isnt the answer duh!
12-28-2008 @ 6:23PM
jtm said...
Thanks. When I read your post I deleted bloggingstocks from my feed reader. One less.
12-28-2008 @ 7:08PM
edneedstoknow said...
The term "job creation" can mean so much more than Zac's limited thought process seems to grasp. Funding provided for alternative fuels can be used to create jobs by creating an infrastructure to support compressed natural gas, hydrogen, and solar vehicles. Any funding given to industry to develop cost effective auto conversions to the above should require that the product also be manufactured in the USA. I can see many long term benefits and jobs coming from short term job creation.
12-28-2008 @ 11:39PM
sitruc said...
Why isn't there a reply feature on this site as there is on the other AOL blogs?
@ moonie - Was your post a joke? Personal responsibility is important and not a partisan issue, but the logic in your post is severely flawed. For what it's worth, nobody is talking about re-doing entire road systems. There are people who want to make current roads more efficient and plan for the future. It's funny that you want government intervention for a largely private real-estate system, but are against public systems being maintained and improved. I'm curious as to where you live.