Why The Government Doesn't Create Jobs
Why you should stop looking to the government to create jobs.
I remember when I graduated from college, I was completely convinced that I would get a job. I was certain that I would get a great job immediately or within a few months. Boy was I disappointed. It took 7 months for me to get a job and that was short compared to a lot of people. I don’t know why, but I thought I was entitled to a job. I thought that a job would miraculously be waiting for me somewhere. It wasn’t until I started to really study economics, that I realized that jobs wait for no one.
In order for me to get a job:
- Someone would have to retire
- Someone would have to get promoted
- Someone would have to move to another state or quit
- Someone would have to create a new job
That is how it works. I graduated in 2009, and I looked to the government to create jobs. I really looked and expected the government to create jobs out of thin air. That is until a guy named Peter Schiff burst my bubble. He said the government doesn’t create jobs and that the government cannot create jobs. Let me tell you, this went against everything I believed. Almost every politician talked about creating jobs and here is this guy saying that the government doesn’t create jobs. Which is it? I didn’t want to believe it because I was comfortable hoping, hoping, hoping that the government would somehow create a miracle after 2008.
He said that the government doesn’t create jobs, because the jobs that the government creates comes from the productivity of the private companies. If those private companies didn’t exists, the government wouldn’t have the tax revenue to pay for people to work as police officers, firefighters, etc. This is the main reason that Camden, a notoriously dangerous city, had to get rid of their police force, because the government didn’t have the money to pay them. This is also why Detroit went Bankrupt. Governments depend on private companies and private citizens to pay taxes so that they can create jobs. So, if a city such as Camden or Detroit can’t create jobs then why do so many people still expect the government to create jobs and stimulate economy?
The government taxes the employees of private companies. Without the private companies and their employees the government wouldn’t be able to create city/state/federal jobs. So in reality the jobs that the government creates are a result of private companies and without it government jobs would not exist. So, this is why I was so disappointed coming out of college. Here I was expecting President Obama at the time and the government to magically create jobs and they couldn’t. I believed what I watched on TV. I believed that politicians could do something. I realized much later that many politicians run their entire campaigns on more jobs, but it never materializes.
People create jobs. People like you and me create jobs. It is small businesses, laundromats, dry cleaners, pest control companies that created jobs and without them not only would the government not be able to create jobs, but most people would be out of work. Suddenly I realized that jobs don’t come from the government, they come from people, mainly people’s ideas. People’s creativity.
When Apple launches the App Store and suddenly software developers come out of the woodwork, that creates jobs. Software companies used to starve because of the cost of marketing and distribution. Now, anyone can be a software developer, because of Apple’s App store. CandyCrush made $200 million dollars in one year making games for the App Store. This wouldn’t not have been possible in the days where you had to go to the store and buy a CD-Rom game from Target. Now anyone can upload games to the App Store and be a game developer.
So, I realized that I was looking for a job in the wrong place, with the government, instead of with myself. I didn’t know how the world worked. I didn’t know how things worked, so I just blindly believed what I was told by politicians. I didn’t know that I shouldn’t believe anything a politician says. Ultimately, I then realized that I could create my own job, there was nothing stopping me. Suddenly the power wasn’t in the hands of the government, it wasn’t even in the hands of an employer. Suddenly the power to create jobs was in my hands. I just wanted to share with you guys how completely liberating that idea was for me. It truly set me free, which is why I no longer depend or expect a government or politician to create jobs, because they can’t. Don't spend 8 years expecting a miracle to come from Washington, D.C. Every job that exists has been created by someone at some point in time. Don't wait to take a job, make a job.