Monday, May 26, 2014

It's Not About Making Jobs!

If ending unemployment was an important goal in and of itself, we could end it tomorrow. How? Give all the unemployed workers a shovel, pay them to dig holes in the morning and fill them back in during the afternoon.  There, everything is great, right? Everyone has a paying job and there's no unemployment.  Well, it doesn't take much to see how wasteful and ultimately destructive such a policy is; but this silly example highlights the fact that what we really want are to create productive jobs, not to just engage in make-work projects.  To explain more, here's a great 4-minute video featuring rising economist-superstar Bryan Caplan of George Mason University.  In it, he covers all the above and then some:

[ht: Cafe Hayek]