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 Post subject: Re: Re:
PostPosted: Wed Jan 27, 2010 10:00 am 
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Homeric Hero
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Rafael wrote:
Spending does not create jobs.


Actually spending is the only way to create jobs... whether it's government spending or corporate spending. You pay people wages, thus spending money.

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 Post subject: Re: Re:
PostPosted: Wed Jan 27, 2010 10:15 am 
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Imperi wrote:
Rafael wrote:
Spending does not create jobs.


Actually spending is the only way to create jobs... whether it's government spending or corporate spending. You pay people wages, thus spending money.


No. Were that true, we could print a bunch of money and just mail out checks to everyone and we'd all haev jobs. We could all have jobs that pay millions of dollars.

Think about what a job actually represents.

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PostPosted: Wed Jan 27, 2010 10:16 am 
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What you want to say is spending can't create jobs in the long term. It can certainly create jobs in the short term.


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PostPosted: Wed Jan 27, 2010 10:18 am 
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"Here's money if you go and do this."

That's what a job is. Spending created it. The job might or might not last in the long term.

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PostPosted: Wed Jan 27, 2010 10:20 am 
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Perfect Equilibrium
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No, it doesn't create jobs at all. So no, it's not what I want to say.

Increased productive capacity, new ventures providing new services, or such actions create jobs. Spending money to pay the salaries of employees needed for such actions is part of that process. It is not the means, nor the ends, it's just a byproduct. It is purchasing labor.

You could buy someone's time to stand around, but the cost comes at decrease capacity elsewhere, through underutilization of resources or depletion of accumulated capital.

If I build a house, I probably will do some framing. That means I will likely drive nails into 2x4's. But driving nails into 2x4's is not building a house.

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PostPosted: Wed Jan 27, 2010 10:23 am 
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Imperi wrote:
"Here's money if you go and do this."

That's what a job is. Spending created it. The job might or might not last in the long term.


Except that job must perform a function. Sure, it might be a job in a semantic or colluqial sense, but it's not service that anyone would purchase. It doesn't serve any use to the discussion. You may have some validity in the same sense there is no delineation between "consumption" and "investment". Afterall, what one person might call an investment (a garbage can), another might call it consumer consumption.

But like I said previously, were we to use your definition of job, we might as well just print tons of money and everyone can sit around and have an easy "job" and get paid for it, paid handsomely at that.

The key to distinguishing which jobs should and should not be considered jobs is the function of the market.

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PostPosted: Wed Jan 27, 2010 10:57 am 
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If simply spending money created jobs then people on Welfare would be considered employed.

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PostPosted: Wed Jan 27, 2010 1:22 pm 
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The purpose the unemployment rate was tracked to show how productive our nation was as jobs meant production. This is no longer the case so the focus is only on someone getting a paycheck - in this view welfare is a job.

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PostPosted: Thu Jan 28, 2010 1:34 pm 
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Hopwin wrote:
If simply spending money created jobs then people on Welfare would be considered employed.

I expect this to be a change slipped into a bill somewhere. Think of the outstanding job recovery we'd have!

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