Wednesday, April 01, 2009

"Creating" Jobs

It occurs to me frequently that I'm well on my way to becoming a curmudgeon. There are a lot of things that grate on me - like the term job "creation" used beside the word "government". Governments, being notoriously poor at innovation, don't create jobs - they simply transfer and destroy value but they are also critical for creating an environment for economic growth. As governments are in full throttle over structuring bail out packages, this is a useful reminder as to what economics bloggers believe affect job creation the most (; more here - RealClearMarkets):

Consider then how governments are now spending the money. The Economist blog also surprisingly comes out with a post citing the negative relationship between high marginal taxes and entrepreneurship - making the argument that "empirical evidence suggests that lower tax rates increase sole proprietors’ income, investment, and propensity to hire workers." New York State intends to raise taxes for the "rich". Any guesses as to who will end up being right?

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