Do Something, Now!

by Young Back Choi

Paul Krugman complains the centrist US Senators’ attempt to whittle down the House stimulus plan by some $80 billion “eliminates hundreds of American jobs, deprives millions of adequate health care and nutrition, [and] undermines schools….” If not more government spending is eliminating jobs and depriving people of goods, then, obviously, the government should spend more. In fact, Krugman believes that the $800 billion House stimulus plan “wouldn’t have been enough to fill the looming hole in the US economy.” Krugman has indeed been arguing for government spending without any restraint. Are we to believe the assertion of last year’s Nobel Laureate in Economics that government spending will solve the problem of scarcity? Continue reading

Can Government Create Jobs?

by Young Back Choi

Modern politicians of all strips promise to create jobs; in this time of economic downturn, the promises of job-creation are with growing urgency. But can government create jobs?

If by jobs one means any scheme by which people are paid money wages, the answer is, of course, “yes”. But there are real jobs that create value and there are phony jobs that destroy value. Government-created jobs are largely value-destroying phony jobs. Continue reading