Employment

I think it is sad how people equate jobs with wealth. I like to ask people who are pro-protectionist policies if they think job creation is good. Of course they answer yes. So I answer with, well I will offer you a $1 a week to wash all my clothes every week. I then ask them if they think that me creating a job was valuable. The obvious answer is no.

The problem is people do not understand wealth creation. Wealth is not created magically just because someone works. If this were the case, we could just put everyone to work digging holes (which is what I think the value of most government jobs are). Wealth is created from efficiency from producing stuff that people desire. Humans have an infinite amount of needs and wants. There is always work. So any “economist” that claims the government needs to create jobs to keep the economy going knows nothing about economics.

Wealth is created from property rights. If people have property rights, they have incentive to use their property wisely and make the most out of their property (i.e. using it the most efficiently).

A recession can only occur if we start using property less efficiently than currently. Government tends to do a very good job at doing things inefficiently and passing laws that result in less efficiency.