T Nation

Unemployment and Creating Jobs


#1

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

Any agreement from our resident liberals?


#2

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.


#3

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?


#4

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