The Fallacy That Government Creates Jobs

[m42]

Amid recent economic turmoil, Americans are once again looking to their government to battle the record number of layoffs. They may be looking in the wrong place:

President-elect Obama has announced that he wants a big "stimulus" package to create 2.5 million jobs by 2011. Many of the details are unclear, including how much new government spending he will propose and how he is measuring job creation. Press reports suggest the incoming administration is looking at $400 billion-$500 billion over the next two years, but the Washington Post reports that Democrats are talking about as much as $700 billion during that time period.

Not surprisingly, the prospect of all this new spending (above and beyond the record spending increases during the past eight years) has triggered a feeding frenzy among special interests. Home builders, auto companies, road builders, state and local governments, the education establishment, the food stamp lobby, the green lobby, and alternative energy companies are among the groups fighting for a place at the public trough.

http://pajamasmedia.com/blog/the-fallacy-that-government-creates-jobs/

[kerrin]

The other thing that people fail to realize is that the jobs the government intervenes "to create" don't end up producing anything that adds to the economy—more pyramids.

[Anenome]

What philosophical wedge can be used to destroy the notion that the government can or should create jobs? Clearly our current arguments against it have been wholly ineffective politically, even if they are unassailable logically. Politicians feel the need to prove they are 'doing something' and come up with this nonsense.
I think we need an amendment for the separation of economy and state =\

[kerrin]

What philosophical wedge can be used to destroy the notion that the government can or should create jobs? Clearly our current arguments against it have been wholly ineffective politically, even if they are unassailable logically. Politicians feel the need to prove they are 'doing something' and come up with this nonsense.
=\
Maybe, identifying the "fatal conceit" that Hayek spoke of, plus a little Objectivism to motive others to solve problems themselves rather then rely on government.

I would tend to think a 'wedge' is not very effective if you don't have a positive message as an alternative.

I think we need an amendment for the separation of economy and state

Jefferson had a similar idea:

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.