T Nation

Unemployment and Creating Jobs

“It creates jobs faster than almost any other initiative you can name.”

Any agreement from our resident liberals?

Probably untrue. Broken window fallacy. The money could certainly be spent in other ways to create jobs in a more sustainable manner; however, this fallacy goes both ways. Mention cutting back defense spending and Republicans will cry “jobs” as well.

Well lets see, what alternative are you proposing? Stopping EI benefits? What will happen to EI recipients once those cuts go in? They will either liquidate assets, or take a job at a lower wage. Wage deflation is already setting in, and as the supply of labour increases it is only going to pick up.

I know the neo-cons will say this is a waste, and will balloon our debt, but you need to think:

a.) What will happen if we don’t? Both from an economic and social standpoint and;

b.) Can I propose a real-world alternative?

Eliminating the minimum wage would have unemployment down to 5% in a matter of months.