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The Spectacle Blog
In a speech yesterday, President Obama gave a nice nod to reality:
And we were guided by a simple idea: Government doesn’t have all the answers. Ultimately, government doesn’t create all the jobs. Government can’t guarantee growth by itself.
Needless to say, even this merest acknowledgement of the limits of the state, couched in a longer defense of indefensible government programs, has left certain liberals feeling a little betrayed. But the president is right.
So where do jobs come from, if not the government? Tim Kane has published a study (pdf) showing that the answer is, more or less, start-ups.
A relatively new dataset from the U.S. government called Business Dynamics Statistics (BDS) confirms that startups aren’t everything when it comes to job growth. They’re the only thing.
Kane offers this graphical evidence:
View all comments (14) | Leave a comment
More Blog Posts by Joseph Lawler
http://spectator.org/blog/2010/07/09/then-who-does-create-jobs
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David| 7.9.10 @ 2:59PM
Wait, I just saw a clip where the President promised everyone a job. Did he change his mind? After all, I thought he would just give everyone a government job. No need to worry about paying for it, since government workers pay taxes..... right????
Pete| 7.9.10 @ 3:57PM
"...but what the government CAN do, and let me be clear, we CAN and WILL cripple job creation by imposing higher tax rates and mandates and generally create an environment where the relationship between effort and return is highly uncertain due to government intervention in the marketplace."
gus| 7.9.10 @ 6:29PM
It's not a job if it doesn't produce something.
Government jobs are not productive.
Rich Rostrom| 7.9.10 @ 9:32PM
Yabbut what about corporations over 15 years old?
And I'm not sure I believe that graphic, given the number of start-ups that crash and burn.
martin j smith| 7.10.10 @ 8:09AM
The response to BHO on job growth is this: Do you want to have policies that create jobs or not. The following are not job creators:
Obama Care,Cap and trade,moratoriams on drilling for oil, raising taxes. Including a VAT.
These polcies mean you want to create the opposite of job growth. What say you BHO ?
Stan Redmond| 7.10.10 @ 10:20AM
I highly recommend reading the linked Matthew Yglesias piece. It is a very clear window in to the inner workings of a big government "progressive" mind. Using Yglesias' logic the government can hire half of the country while the other half is paid to support the government worker. While it all sounds warm and fuzzy using the Patreaus analogy the progressive mind won't see past the obvious problem with such a scheme. The government can only print more money, or take it from the pleabs to pay that government worker. Nothing is produced. Government only survives by creating expensive solutions to problems that don't exist. Nothing is expanded that produces wealth or demand naturally. If Yglesias' assertion that government creates jobs is true, Europe should be thriving and we'd all be part of the USSR.
I don't believe for a second Obama actually believed what he said when he proclaimed government can't solve all the problems in our economy. He told us many many times government is the ONLY solution to our problems and that we must all look to him to hope and change. It is pretty obvious pandering to the private sector community he has savaged (and will destroy in 2011 or the lame duck session in 2010 becasuse there is no way he will veto the dems scorched earth policy). It is obvious to even the most die hard communist Obamaton as demonstrated in the replies to Yglesias' post.
Obama is a liar and a dithering thug.
ACynic| 7.10.10 @ 7:32PM
One has to be a total idiot to believe that Obama truly believes what he said about who creates jobs.
Obama is a Marxist Leninist thru and thru, and he looks upon employers as racist, opportunistic, evil enterprises that exist only through exploiting workers while paying their top brass millions - at the expense of the line worker.
Obama's utopia is a Soviet Union that worked - sort of - in which he, and his arrogant, elitist, multimillionaire pals and union thug bosses dictate to all what and how to live.
Obama is nothing more than a non-Spanish speaking, beardless Castro
Oldefarte| 7.11.10 @ 12:55PM
Any MORON who listens/believes this IMBICILE-IN-CHIEF concerning economic/financial matters [or any others] should go to a psychiatrist and have his/her head examined. Government never has, nor ever will, create jobs [which implies the multiplier effect of economic theory]; but in hiring, is simply creating MORE GOVERNMENTAL WELFARE and additing to its political constituent base [since any one working for the government will be browbeatened into voting for whoever and whichever political party hired them to begin with!!!!!
Nate| 7.11.10 @ 9:45PM
So let me see if I've got this straight.
A small village by the sea decides it can increase its exports and the standard of living of its people by building a lighthouse.
So it levees a tax to pay for the lighthouse and hires a man to live in the lighthouse and work the lamp.
By the economic theory I'm learning on this thread a) the town has NOT created any jobs; b) the lighthouse keeper produces nothing; and c) the village should not have bothered. If Jesus had wanted a lighthouse there he would have put one there when he made the world three thousand years ago. That's economic theory Tea Party Style.
Don Carlson| 7.12.10 @ 12:16AM
I enjoy calling the president a 'clown', and Stan prefers ‘dithering thug’. Others are prone to use ‘imbecile-in-chief’ or ‘jackass-on-a-jackass’ or any number of more forthright and filthy terms dear to all of us. But we can't be sure that Mr. Obama is any of these things because we do not know that he actually believes the manure he spreads. Our greatest fear should be that he and his cohorts do believe it because then we are dealing with leftist evangelists of the boldest type who might be willing die to impose their 'truth' on us. The next question is whether we will die to resist it. I hope the ghost of Patrick Henry walks among us.
Groucho| 7.12.10 @ 8:03AM
*Yawn.
....I'm sorry, Don. Did you say something?
Don Carlson| 7.12.10 @ 12:25AM
As I remember, Nate is the guy who told me that the libertarians wanted to remove all the stop signs. Didn't he also say that Stalin was the inventor of 'State Capitalism?' At least he's consistent.
dofus kamas | 7.20.10 @ 1:12PM
As I remember, Nate is the guy who told me that the libertarians wanted to remove all the stop signs. Didn't he also say that Stalin was the inventor of 'State Capitalism?' At least he's consistent. !!