The Fallacy of Job Creation through Government Spending from "summary" of Economics in One Lesson by Henry Hazlitt
The idea that government spending can create jobs is a fallacy that is often perpetuated in discussions about economic policy. This fallacy is based on the belief that when the government spends money on various projects or programs, it creates jobs and stimulates economic growth. However, this belief fails to consider the opportunity cost of government spending. When the government spends money on projects or programs, it must first take that money from the private sector through taxation or borrowing. This means that the money being spent by the government is not available for private investment or consumption. As a result, the jobs created by government spending are offset by the jobs that would have been created if that money had remained in the private sector. Fu...
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